Hi everyone,
Firstly, I have to say what a great resource Somersoft is and what a helpful community there is here. My background: I am looking at purchasing my first property (a unit) in Strathfield, NSW, 2135. This will serve as my PPOR initially but my longer term plan (> 2 years) is to utilise it as an IP. I will live in the property independently to satisfy requirements FHOG/FHSA and afterward, will rent the second room out.
Why I'm looking at Strathfield
My concerns
I'm not sure if the above concerns are worthy considerations or not as there are still thousands of people living in this area in properties similar to the one I am looking at. I can't tell if I'm antagonising myself as it is a first purchase or if these are genuine red flags/deal breakers. I'm hoping for your help here
My next query will be regarding due-diligence and The Buying/Selling Process for which I will head over to the other category.
Thank you for reading and if you have any thoughts or questions I would be very appreciative to hear them!
Firstly, I have to say what a great resource Somersoft is and what a helpful community there is here. My background: I am looking at purchasing my first property (a unit) in Strathfield, NSW, 2135. This will serve as my PPOR initially but my longer term plan (> 2 years) is to utilise it as an IP. I will live in the property independently to satisfy requirements FHOG/FHSA and afterward, will rent the second room out.
Why I'm looking at Strathfield
- Transport - an easy commute to the city (13 minutes express via train) and the area is well serviced by buses. The train station is served by 6 lines (IIRC) which makes getting to East/West easy. Proximity to M4 and Hume Hwy is also good.
- Infrastructure - Lots of schools/colleges, good proximity to major shopping centers such as Burwood Westfield is a draw card. Several Woolworth's in the area, notably at Strathfield Plaza. North Strathfield is also a very short trip and has growing restaurant scene, Aldi, Harris Farm, entertainment, childcare and a couple of gyms.
- Community - Heavily culturally diverse which may be driving demand for renting/buying.
My concerns
- The property is a little pricey for a first IP (at around $500k), although this is something I can afford with expected yields. As this is a unit, I'm also not expecting significant capital gains but if held for 5 years would expect small but reasonable growth.
- Nearby this specific location of this property within Strathfield is a small, stalled development site which is now fenced off by council. I have no idea what the history is here but I understand locals are understandably not pleased. It degrades the area somewhat and is potentially off-putting to some.
- There are apartments which are either recently developed or being developed nearby. I see this as a double edged sword: the development nearby may positively improve the surroundings of this property, but it also creates more supply and could reduce yields if newer units are thought to be better value than mine in the eyes of tenants.
- Entry/exit points to this part of Strathfield are poor. One exit is westbound on Paramatta Rd and the other is a difficult intersection. Both are give-way. In heavy traffic this is a pain, but if walking to the station, is not a great concern.
I'm not sure if the above concerns are worthy considerations or not as there are still thousands of people living in this area in properties similar to the one I am looking at. I can't tell if I'm antagonising myself as it is a first purchase or if these are genuine red flags/deal breakers. I'm hoping for your help here
My next query will be regarding due-diligence and The Buying/Selling Process for which I will head over to the other category.
Thank you for reading and if you have any thoughts or questions I would be very appreciative to hear them!