Buying In Doonside, Bunya Estate

J

jewel18

Me and my husband are planning to buy an off the plan house in Bunya Estate, Bunggaribbe. This is a part of Blacktown council and near Doonside.

We are planning to spend aroung $550K in a land and house package?

What are your suggestions if this is a wise decision?

How safe is it to live in Doonside, with Bunggaribbe coming up as a new suburb?

Is it a good investment? What would be the returns on this property in about 5 years?

Look forward to your response.
 
jewel18 said:
What are your suggestions if this is a wise decision?
Click to expand...
No, in my opinion it is not a wise decision. It is fraught with danger and may end in tears.
Please do a google search site:somersoft.com "OTP" to read many horror stories, some of them are unfolding as we speak where valuations are not stacking up on property purchased OTP (off the plan) 2 years ago, and purchasers cannot settle.

The ONLY time OTP works is in a confirmed rising market where you are sure of your finacial situation (and the banks lending policies) are unchanged or better when you have to settle in the future.

jewel18 said:
How safe is it to live in Doonside, with Bunggaribbe coming up as a new suburb?
Click to expand...
You can look up the crime maps:
http://www.lawlink.nsw.gov.au/lawlink/bocsar/ll_bocsar.nsf/pages/bocsar_lga_crimemaps

jewel18 said:
Is it a good investment?
Click to expand...
No, it is generally not a good investment. The first few years are often no / low capital growth as the growth has been sucked up by the developer's profit. You pay a premium for brand new & shiny.

jewel18 said:
What would be the returns on this property in about 5 years?
Click to expand...
Sorry, no-one except God himself can tell you that. And anyone that does give you an answer I'd be very wary of indeed.
 
Propertunity said:
Yeah but the median price in Doonside is $360K - so $550K is OK for an emotional PPOR decision but the OP was asking about it being a good investment. ;)
Click to expand...

you are making the assumption that they were asking is it a good investment for THEM.

its been a good investment for someone so far im sure.

In no way shape or form do I agree it would make a good investment compared to say a near city 2 bed blonde or red unit for similar money ...........but then you'd likely share that view

ta
rolf
 
Aaron_C said:
Wow $550,000 for a house in Blacktown....wtf
Click to expand...

Can you please let me know where else you can buy a brand new house..
with a land size of 500sqm and 4 bed 2 bath and double garage for 550?

and which according to you is a good area and not too far from city.

as it takes about 45 min from doonside to go to city as they have lot of express trains from doonside.
 
jewel18 said:
Can you please let me know where else you can buy a brand new house..
with a land size of 500sqm and 4 bed 2 bath and double garage for 550?

and which according to you is a good area and not too far from city.

as it takes about 45 min from doonside to go to city as they have lot of express trains from doonside.
Click to expand...

Lots of places around Brissie :)

ta

rolf
 
jewel18 said:
Can you please let me know where else you can buy a brand new house..
with a land size of 500sqm and 4 bed 2 bath and double garage for 550?

and which according to you is a good area and not too far from city.

as it takes about 45 min from doonside to go to city as they have lot of express trains from doonside.
Click to expand...

Please tell me too.... I would really like to know where in Sydney you can grab a brand new house for a lot less than $550k.
 
And the reason you buy a brand new house that loses value as soon as you drive it off the lot just like a brand new car is what? Brand new houses come with brand new house premium price.
 
To give you more information on what we plan...

We are first time buyers and will be entitle for the new first home grant.

Below is the plink of the place, we are considering.
http://www.bunyaliving.com.au/

What we are planning is to buy a land around 300K and build a 4bedroom 2 bthroom house for about 250K. With the grant the whole thing would come to about 520-530K.

When we look in the market for old houses in places like Quakers hill nothing seem to be too appealing. Plus we have to pay the stamp duty on the house we buy. Also also there will always be some renovation to be done.

Hence building a house in Bunya seems to be the best option. New House and 5 -7 min drive to Doonside station, considering we work in the city and do not plan to change our jobs.

We would live in the house for at least 5-7years, possibly longer.

What are your thoughts? Is it something worth considering?

Or any other place we can consider in the same price range?
 
jewel18 said:
To give you more information on what we plan...

We are first time buyers and will be entitle for the new first home grant.

Below is the plink of the place, we are considering.
http://www.bunyaliving.com.au/

What we are planning is to buy a land around 300K and build a 4bedroom 2 bthroom house for about 250K. With the grant the whole thing would come to about 520-530K.

When we look in the market for old houses in places like Quakers hill nothing seem to be too appealing. Plus we have to pay the stamp duty on the house we buy. Also also there will always be some renovation to be done.

Hence building a house in Bunya seems to be the best option. New House and 5 -7 min drive to Doonside station, considering we work in the city and do not plan to change our jobs.

We would live in the house for at least 5-7years, possibly longer.

What are your thoughts? Is it something worth considering?

Or any other place we can consider in the same price range?
Click to expand...

now there is a change of the question.......................

A property targetted mainly for owner occ reasons, rarely makes a "good" investment.

I suppose that raises another q?

What is the def of a good investment for you personally.

What I think, and what someone else thinks isnt relevant if you are happy with say 3 % pa cap gain over 10 years.

ta

rolf
 
Best to not fall into the trap of no stamp duty ... as already mentioned, you pay a premium for a brand new place, and the developer most likely would take the stamp duty into account when pricing the place.

With an established place you have the option to renovate as you see fit over time. I wonder how much of the materials etc you can choose with a brand new place?

We were initially going to purchase OTP when the grant for brand new places was 24K - so glad we didn't, it would have been such a loss. By purchasing established places we have been able to add some value, and use the equity to repeat the process.

PS 5-7 minutes drive to station - sounds like the station is a good distance away.
 
Why not look in another area , like Baulkham Hills ?
This one would take around 40 mins to the city on the m2 bus (once the m2 upgrade is done) , and offers future potential growth being a few minutes bus to castle hill and the future train station. Not to mention that auctions rarely do well in this area so you may end up getting it cheaper....

http://www.realestate.com.au/property-house-nsw-baulkham+hills-110993115

Position is great , park and pool very close as are some very good schools (not to mention shops).
 
Unless you buy the land at a discounted rate then you are unlikely to be making any money from the property (in terms of capital growth) any time in the next few years. Buying in an early release usually means that you will pay less for land than in later releases, so you could still be getting in early enough for you to make some money down the track if a potential buyer in that estate decides to buy a complete home rather than land and build. This isn't always the case tho.

The problem with buying in a new estate is that there is lots of supply. If you try to sell before the estate is all built out, there will be many options for potential buyers and yours may not look so great - the old supply/demand factor.

We bought land in an estate not too far from there 18 months ago. The land was cheap as the previous owners hadn't done their homework on building costs and deemed the land too expensive to build on. We worked out that the price of the land plus house was much cheaper than buying existing properties in that estate, so we bought it.

Now that we've had our second child, we'd love to buy a forever home. Something large and comfy. But while it is tempting, it would kill our investing potential due to the large mortgage repayments and there unlikely to be any equity in a few years to use for another purchase.

Are there any blocks in the estate big enough to build a duplex? There's usually a bit of money in it for the person building if they think smart or get a draftsman to think smart re optimising the block.

As a first home buyer it is great to buy a wonderful place to show off to your friends, but in buying that house, it may be your only place for a long time.

Turning to the location, I think Bunya is nice. It certainly isn't the Doonie we all know and despise. But take a look at Ropes Crossing and its location to Willmot. Nice little place but the bad eggs aren't far away to take the fun out of living in your nice shiny house. I expect it will take a while for properties at RC to make money too. Very similar demographics close by to RC and Bunya.
 
My partners house is in Quakers Hill, not far from Doonside actually.

The area isnt the best.

If i was going to spend 500k i wouldnt be doing it there.

I am no expert myself (No comments please :p) but apart from the 1 hour, irregular and unreliable train service and your close proximity to the M2/M7 there isnt much going for it.

If i could afford to buy i would go for the worst place in the nicest suburb.
 
perky29 said:
Why not look in another area , like Baulkham Hills ?
This one would take around 40 mins to the city on the m2 bus (once the m2 upgrade is done) , and offers future potential growth being a few minutes bus to castle hill and the future train station. Not to mention that auctions rarely do well in this area so you may end up getting it cheaper....

http://www.realestate.com.au/property-house-nsw-baulkham+hills-110993115

Position is great , park and pool very close as are some very good schools (not to mention shops).
Click to expand...


Hmmmm... price guide seems a little low to me...
 
Hi Jewel

I understand your position and sympathise. With the new grants, they sound great but the reality is that there's very little stock that qualifies in Sydney. The govt is handing out these grants to stimulate new building but my fear is that they will end up being absorbed by the developers, with greater demand and consequently many buyers may pay "more" than fair value, resulting in higher prices.

It's tricky when you don't have enough funds saved up to buy established property, but I'd encourage you to at least consider already-built properties in older areas so you at least qualify for the current $7K grant for established dwellings, before it expires in October. You will have to pay SD of course (this went at the end of 2011) but at least you can buy something to possibly add value to that may well be better positioned than the estate at Doonside.

For a max buy of $500K there's still many options open to you that may be better. Why not Blacktown, Quakers Hill, Marayong, Kings Park? If transport is important to you, you can find homes in these suburbs walk to the station. Do you absolutely need 4 beds and 2 baths? Why not save yourself some money and buy something with potential to add value down the track?

Best of luck with your plans whichever way you go :)
 
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