Best Sydney property under 200K

[Calico]

I've got to say, I love this forum! Even though this is my first post I have been reading it for months now.

I am looking to buy my first ip and have about 200K to spend. I am keen to buy in Sydney as I expect it to do very well over the next five years.

I can't decide between a 2 bed unit around the Fairfield region or a small house around the Mt Druitt region. Rental yields look about the same so it is really a matter of where to expect more CG. Any thoughts?

Has anyone got a better suggestion for buying in Sydney with only 200K to spend?

 

[yorke]

I can't decide between a 2 bed unit around the Fairfield region or a small house around the Mt Druitt region. Rental yields look about the same so it is really a matter of where to expect more CG. Any thoughts?

I'd go with the house, more room for improvements .

 

[josko]

hi there Calico,

Good on you.

1. I would look at the free information from RP Data on realestate.com and see what the gap is between houses and units in both of these areas. It is one thing I take into consideration before purchasing.

For example:

If in Mt Druitt, a house is worth 220 k and a 2BR unit is worth 200k, then you can be pretty certain that the CG will come to houses sooner than units there. Most people would rather fork out an extra 20k for a house.

If though you find a huge gap between units and houses, then there is a fair chance units will grow sooner/faster until they start catching up to house prices.

2. Take into consideratioon that you have no control over BC Fees and maintenance with units. If for example you buy in a block with a ratty old fence and the BC decides it is unsafe and needs a new one....you could be up for for a share of the expenses to replace it.

3. Take into consideration the area and type of demographic in that area. Lower socio-economic areas have higher fluctuations in growth. In times like these, they are the first properties to lose alot of value.

Good Luck,

Regards JO

 

[stumunro]

I've got to say, I love this forum! Even though this is my first post I have been reading it for months now.

I am looking to buy my first ip and have about 200K to spend. I am keen to buy in Sydney as I expect it to do very well over the next five years.

I can't decide between a 2 bed unit around the Fairfield region or a small house around the Mt Druitt region. Rental yields look about the same so it is really a matter of where to expect more CG. Any thoughts?

Has anyone got a better suggestion for buying in Sydney with only 200K to spend?

under 200k it's going to be a very average house needing a lot of work. The unit will be in much better condition or have a ''better" location.

Let me ask you.. why Sydney? i'm assuming for the FHG?

 

[Calico]

Let me ask you.. why Sydney? i'm assuming for the FHG?

No, even though this will be our first property purchase, unfortunately we won't be able to qualify for the FHOG because we can't meet the residency requirement. I work on Sydney's Northern Beaches and my job requires me to live close to work (and provides me with housing). Given that I have four kids and only 200K to spend it will be impossible to find something close to work that we could live in.

Why Sydney?

Two main reasons:

1. Everything I have been reading and hearing suggests that Sydney will do very well over the next 5 years. Even if it doesn't take off for another year or two I feel confident that in 5 years time prices will have risen significantly.

2. I have lived in Sydney all my life and know it well, which makes it easier to evaluate deals and to inspect property.

I am open to other suggestions though, if you have any?

Thanks,
Calico

 

[stumunro]

No, even though this will be our first property purchase, unfortunately we won't be able to qualify for the FHOG because we can't meet the residency requirement. I work on Sydney's Northern Beaches and my job requires me to live close to work (and provides me with housing). Given that I have four kids and only 200K to spend it will be impossible to find something close to work that we could live in.



Two main reasons:

1. Everything I have been reading and hearing suggests that Sydney will do very well over the next 5 years. Even if it doesn't take off for another year or two I feel confident that in 5 years time prices will have risen significantly.

2. I have lived in Sydney all my life and know it well, which makes it easier to evaluate deals and to inspect property.

I am open to other suggestions though, if you have any?

Thanks,
Calico

I agree Sydney is going to be a good investment long term. Within 5 years? Well who could be sure.

Just don't be short sighted as Australia is a large place. Have you considered that for the money you could get something really decent close to the CBD in Adelaide for example?

And this is just an example, but may open you to different ideas that are out there. Not everyone wants to buy a property in a low-socio economic area, just because it is in a good city (sydney). So depends on your personal preferences and beliefs and core values as an investor.

Personally, I don't have any stigmas of Western Sydney, in fact I think it's great to grab a half decent house with good cashflow and good block of land.

Just trying to open your eyes to your options Especially if your not going to be using the grant, as this doesn't tie you to the state

--

oh and don't feel you absolutely must have to inspect a property. obviously it's important to get building inspections and get lots of internal photos, but you can outsource this work. In fact it's alot easier to make an un-emotional decision (this is an investment) without having to go there and see the property. Just concentrate on the numbers, rental return, comparable sales, local development, council & private, retail, schools, etc. etc. All of which you can do on the internet or phone.

Perhaps you may want to have a little investment holiday to an area you have picked out, maybe just for a week. This may make you feel comfortable in choosing an area - without having to inspect each and every property there after.

Good luck!

 

[Calico]

Thanks Stumunro for that advice, I really appreciate it!

Have you considered that for the money you could get something really decent close to the CBD in Adelaide for example?

Thanks for the tip. I know absolutely nothing about Adelaide though. Would you mind mentioning a suburb or two so that I can have a browse on domain.com?

 

[Rob Williams]

To buy a unit within, say, 10km of the CBD you will need to go to mid $200's for a 2 BR. I wouldn't bother with a 1 BR for a range of reasons.
Just to get you started, try looking at Broadview, Enfield, Windsor Gardens, Klemzig, Thebarton, Kilburn.
East or South of the CBD will take you over the $250k range.
Feel free to PM me if you want some more suggestions or want me to look at something for you.

 

[stumunro]

Thanks Stumunro for that advice, I really appreciate it!



Thanks for the tip. I know absolutely nothing about Adelaide though. Would you mind mentioning a suburb or two so that I can have a browse on domain.com?

** edit ** check out robs post! he could definitely point you in the right direction

Don't confuse my point with my telling you to invest in Adelaide specifically! I was just trying to broaden your horizons and investigate the options.

You may very well buy something in Sydney anyway, my point was to have a look around