Buying in NSW Eastern Suburbs

J

j4mesa

Hi all,

I am starting my first investment in property.
Currently looking at investing in either :

1 bedroom or plus ranging at 330-380 k
OR
2 bedroom ranging at 400 - 480 k

Currently considering :
Randwick, Kensington (first priority)
Moore Park,Mascot or Hillsdale (2nd priority)
Any other suggestion

My investment goals are:
to start in ip to get high capital gain as well as high yield (rent) if possible

For those who read this thread, I would greatly appreciate any comments or even suggestions as to which SUBURB has a potential for growth and currently cheap (I know that Randwick n Kensington is already too expensive)
 
Hi, I'm looking to buy my 1st IP soon too.

Randwick would be the most appealing of all suburbs you mentioned.
Has POW Hospital, UNSW, Racecourse, close to Coogee and eastern beaches and city.

Wondering why you would consider Hillsdale?
Unit / housing commission central ! Very unappealing, similar to Eastlakes.

I would think Randwick and Kensington would produce the best results.

Meriton has created a new city in Moore Park, don't know how that will end up down the track.

What do you mean by Randwick and Kensington are already too expensive?
Plenty of 2br units within your range there.


Good Luck.
 
j4mesa said:
Hi all,

I am starting my first investment in property.
Currently looking at investing in either :

1 bedroom or plus ranging at 330-380 k
OR
2 bedroom ranging at 400 - 480 k

Currently considering :
Randwick, Kensington (first priority)
Moore Park,Mascot or Hillsdale (2nd priority)
Any other suggestion

My investment goals are:
to start in ip to get high capital gain as well as high yield (rent) if possible

For those who read this thread, I would greatly appreciate any comments or even suggestions as to which SUBURB has a potential for growth and currently cheap (I know that Randwick n Kensington is already too expensive)
Click to expand...

Well personally I wouldn't rush to buy in any of those areas. My feeling on Randwick, Kensington, Mascot, Moore Park is "unit saturation".

It would need to be a very special unit to justify buying there.

For the money you are talking about look at Elizabeth Bay, Potts Point, Darlinghurst, Surry Hills, Darlington, Glebe, Erskineville and Chippendale.

They are all better located to the CBD and better rental areas IMO.

Good luck!
 
Hi Ani - I currently live in Randwick, and I have invested in the area also (1999 - 2000). The places you mention may be better located to CBD, but not to 3 of Sydney's best beaches, centennial park etc. Randwick is also very close to city and the hospitals / university give an almost perpetual supply of tenants. I've let my randwick properties to doctors, specialist nurses etc - all paying good rent. From my Randwick apartment I walk 20 minutes down to Clovelly beach and don't need to look over my shoulder while I am doing it. There are some great older style art deco buildings that seem to be in good demand. The last one in my street sold in a week (2 months ago).

I agree with you in that I wouldn't buy in mascot or Moore Park. Maybe Kensington if the yield was good, but yes, would need to be quite special.

Parts of Randwick (north, clovelly end) can be rewarding in my opinion.
 
j4mesa,

the randwick properties I just described in that particular pocket you would struggle to find for 400-480K. More like 490 to 600K.

You should consider those suburbs that ani mentioned as I think there will always be demand for tenants in those areas.

If I was looking for a unit today, I'd go up to the 490-600K price bracket and buy quality in Randwick/Clovelly/Bronte area.

As it is, I was recently in the market for a beach house and settled on the northern beaches !
:)
 
oscar, ani, n black spider,

thank you for all the input it was great.......

1. Randwick, no question asked , just loved this area. Convinient to the strategic places

2. Moore Park,yes you are right,it is the Meriton complex. The Aria , 4 Lachlan St. 1 bedroom for around 330 k ,pretty new. It seems that Moore Park is going to be the next growing EASTERN suburb, what does anyone thinks about this suburb.
Say if I am able to inject 20% of the capital, and then just need to service the rest of say roughly
Interest : 7.5% interest of 264000 = 19800 per year
Rent : 350 * 45 weeks = 15750 per year
Council = 970 ann.
Strata = 2600
Need to pay extra 7620 yearly, not too bad isn't it ? Plus at the end of the day we can get CG yeah after awhile...


3. Hills dale is housing commision but it is still around in eastern suburb isn't ? Which IMHO still undervalued

4.Elizabeth Bay, Potts Point, Darlinghurst, Surry Hills, Darlington, Glebe, Erskineville and Chippendale. They are good areas but not so close to the beaches..........what 's the strength of these areas other than close to CBD ?
 
Just missed out on a 1 bed with car space renovated appt which is having all the common areas upgraded as well. Sold for $335K I think,
and another 1 bedder in the same block is paying $350 pw rent with the 2 bedders I believe fetching $400 to $410. A stones throw from Belmore rd shops and POW hospital and UNSW.
Well personally I wouldn't rush to buy in any of those areas. My feeling on Randwick, Kensington, Mascot, Moore Park is "unit saturation".
Click to expand...

Sorry Ani, I would think potts point, Darlo & Elizabeth Bay are more saturated with Units than randwick.

I agree, would not go near Meriton at Moore Park or Hillsdale/Eastlakes.
In fact Kingsford/Kensington would have a large number of Uni students looking to rent. And from what I have seen in my days of photographing property in those suburbs, Students don't tend to look after things :(

Greg
 
.Elizabeth Bay, Potts Point, Darlinghurst, Surry Hills, Darlington, Glebe, Erskineville and Chippendale. They are good areas but not so close to the beaches..........what 's the strength of these areas other than close to CBD ?
Click to expand...

Lots of young singles or dual income people prepared to pay good rent to be able to live close to work etc.

I live in Maroubra and love the beach, However not everyone else does.
(my sister whinges about getting sand between her toes!!!!!! :eek: )
Don't buy an investment just 'cause its near the beach.

Greg
 
I did sound a bit general about Randwick. I agree if you can get a nice deco apartment there or a house it is more than ok, but I think there is a surplus of terrible 60's apartments there that have no defining features.

So what I was trying to say was avoid the cheaper mass produced apartments!

Not everyone wants to live near the beach, a lot prefer to live closer to town. It is still only a 10-15 minute drive to the beach.

Luckily we all don't like the same things:D

Also I find rents are higher in the areas close to the CBD so if I'm going to pay say $440k for an apartment I prefer the extra $40-60 per week rent I'd get there.
 
Grego said:
In fact Kingsford/Kensington would have a large number of Uni students looking to rent. And from what I have seen in my days of photographing property in those suburbs, Students don't tend to look after things :(

Greg
Click to expand...

While the Kingsford/Kensington area is popular with students the type of unit you have can dictate who will want to rent it. For example I have just bought at the higher end of the 2br unit market in Kingsford and due to this uni students aren't as interested . I have a middle aged high income earner living in the unit happy to pay $400 a week.

Also with vacancy rates being what they are right now you can also be more selcetive on who rents your property.

I personally think that Randwick, Kensington and Kingsford are good areas for potential CG however I would try and avoid units on Anzac Pde (too many!). There are still some good bargains to be found around this area to.
 
Glebe, for the kind of property I described in Randwick, say worth around 500K, you would get between $440-460 a week in rent. (This reflects the case for 2 of my IP's in Randwick). Not too good a yield but I still see growth in these properties if held long term, and steady increases in rent over time. I'm not planning to sell any of mine right now, just adjust the rents to their market value.
 
Glebe said:
What sort of gross yield would all of you be looking to achieve, to consider it a worthy purchase?
Click to expand...

Glebe,

are you asking me ?
if yes, here is my answer:
I don't have any specific one but I would like to have the yield which is close to the interest rates i need to pay....the yield would be around 5%

To everyone,

The reason I am considering Moore Park is just because it is a mortgage reposition and the actual price is 315 k, which I considered cheap for 1 unit bedroom without carpark.
Also with the rent averaging at 350 per week, it would be worthed......

PLUS Coles is going to open up in Moore Park Complex....and some small shopping places.....
That is my consideration........although definitely randwick n kensingon are definetly better

Please let me know I might have gotten into the wrong decision..... : ) still newbie
 
Hey Mr. Bond

You ready to invest now? We are holding a small seminar at the office on the 13th of june. here is the link:

Bring Albert too with you. I'll give you a call pretty soon. Hopefully tomorow.

How's your new job by the way?

Have a good one.

Regards,
 
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