buying in Sydney

Hey all.

After much research and lots of changes of mind i've decided to buy in my home town Sydney.

I've narrowed down to a few suburbs.

I am spending up to 400K but preferably aorung 350 would be nice.

Done my research and purchased a couple of property reports (i know not always correct but give me a bit of a starting point!) and narrowed it down to the following:

1) narellan vale
2) wattle grove (possibly a little too pricey)
3) hassal grove
4) hinchinbrook


Each has a potential yield between 5 and 5.5% (hinchinbrook probably the highest).

Now in the back of my mind i still have Melbourne but thinking it might be easier to purchase closer to home cos my other IP is in QLD.

Does anyone have any thoughts on any of these areas?

Thanks!
 
What does your research tell you?

Why have YOU chosen these suburbs?

I'd go for a better yield that 5%, particularly with rising interest rates.
 
Most of these places are close to major motor ways so access to city, schools close by, public transport, areas surrounding higher in value, reports predict 10% pa growth etc

I know higher than 5% would be great but i am struggling to find areas with higher than 6% yield.

If you have some goldmines feel free to let me know!
 
Hi Daniel

Why only one side of Sydney? You should also check out western suburbs as there's still good value in the sub $350K bracket, depending naturally on what and where you buy.
Happy searching!
 
I guess these are just some of the areas that i looked at that caught my eye. Any thoughts on any of them Jacque?

Still not 100% sure on Sydney as many "experts" are saying Melbourne is the place to buy.
 
Daniel

Wattle Grove is probably above your budget.
Even the small 3 bedders will be on high 300's but you should be able to get some fibro places in Holsworthy which is also better located from the transport point of view.
 
Still not 100% sure on Sydney as many "experts" are saying Melbourne is the place to buy.
Daniel,

Melbourne WAS the place to buy 12 months ago as it has lead us into the next property boom, but Sydney IS the place to buy now.

Sydney has historically lead the boom cycles but this one is different given Sydney was hardest hit by the GFC. But that doesn't mean Sydney won't also have its day in the sun. In fact, all of the signs suggest it is finally waking from its slumber and set to do extremely well over the coming decade.

Remember that Sydney has the largest rate of population increase of all the cities in absolute terms. People tend to forget this and look at percentage increases or interstate migration numbers. The truth of the matter though is that Sydney is home to more new families every year than any other city in Australia, period.

Michael Yardney from Metropole suggested Melbourne would lead Sydney into the next boom cycle about 12-18 months ago and I disagreed with him. I have to acknowledge now that he was 100% correct. But he and others also all suggest that Sydney won't be far behind.

So, do you want to buy in Melbourne where 20-30% of the action has already occurred, or buy into Sydney where its just kicking into gear. The choice is yours.

Cheers,
Michael
 
Actually in terms of absolute numbers of new residents melbourne is significantly higher than sydney. Melbourne is around 70,000 a year, Sydney is more like 50-60K.

Other than that I'd be inclined to agree. Melbourne has had fairly good growth since early in the year. At a guess I'd say 10-20% in a lot of places. Its hard to tell because at the end of last year there were very few sales, so scarcity held up prices a bit.

Brisbane and Perth both had much larger price growths in the last 10 years than Sydney or Melbourne. They used to be much cheaper, but are now much closer in pricing to the larger capitals.

The GFC while nasty for some people was not catastrophic as some were warning. Finance industry shed 10% of jobs, but are now re-hiring.

All of this suggests to me that Sydney could do well.
 
Thanks everyone.

At least some of your comments have sort of cemented my idea to buy in Sydney. I'm sick of changing my mind all the time so definately gonna go down the above path.

Any opinions on any of the above areas specifically? Just looking to focus on one specific area to keep it simple and also obviously make it easier to get a good feel for a properties at a good price.

Cheers
 
I recall that Melbourne led the last property boom ahead of Sydney around 2001/2002.

I remember going to a seminar in Chatswood by Steve Navra with a few Melbourne investors attending who had done really well in the last 12 months. The guy sitting next to me invested outside of Melbourne (in Moe or Morewell). He had done well buying a whole block of units.

I think Steve also went through the statistics for last year for both Sydney and Melbourne duringn his presentation and the local investors were a bit envious of Melbourne's gains.
 
Hi Daniel

Why only one side of Sydney? You should also check out western suburbs as there's still good value in the sub $350K bracket, depending naturally on what and where you buy.
Happy searching!

Which suburbs in western sydney are you referring too:)
 
Any opinions on any of the above areas specifically? Just looking to focus on one specific area to keep it simple and also obviously make it easier to get a good feel for a properties at a good price.

Cheers

Daniel

I don't believe in those reports and I don't like suburbs with no train station.
or no primary + High school and shops nearby so that narrows down the range a bit and makes it easier to decide on a location.

I didn't buy in the outer western subs this year because I left it too late and I thought that prices had already moved so I bought in Casula (still Liverpool Council like Hitchinbrook) and Wiley Park(Canterbury council).
My closest buy to Hassal Grove would be Quakers Hill in 2007.
IMO Quakers is a better option.

Since you mentioned Wattle Grove,
The property in the link below is right next to the Wattle grove shopping centre,
I believe Wattle Grove starts on the other side of the road.
6 months ago you would have got it for $350K, you can still make a low ball offer and see what happens. It will sell because of its location and potential for dual occ
http://www.domain.com.au/Public/PropertyDetails.aspx?adid=2007794552

Or you can go for a 950m block, 25 minutes walk to the WG shops but unfortunately it's not walking distance to the train station
http://www.domain.com.au/Public/PropertyDetails.aspx?adid=2008091566
 
where 2 buy in sydney

how u going mate , i would go with narellan vale best bet, anywhere around campbelltown is good to , minto , leumeh if u need any more help just ask , blacktown side give a old town feel , campbelltown is set out much better 3 big shopping centers its has everything its more of a modern town then the other 1s on ur list, more of a newer cleaner feel to it , it has its housing areas abit ruff , but they seem 2 be cleaning them up , as was minto half the town is going 2 b nocked down and sold look up its called new minto ,
 
Thank for the info everyone (especially Bill really appreciate it)

Had a good look at Hassall Grove an Hinchinbrook on te weekend.

I know everyone always stresses how important a train station is but i really liked the look of Hassall Grove.

Its quite small with bus stops basically within walking range to any house in the neighbourhood and the M7 is a about 4 minutes away.

It has a primary and hig school next to each other.

Close to Parramatta and an easy drive down the motorways to the city.

Just curious why do people think Cambelltown would be a better bet?

Cheers
 
Just curious why do people think Cambelltown would be a better bet?
Cheers
Daniel

People have preferences for various reasons.
IMO North is nicer but Campbeltown and the South side has potential for improvement.

If I was working on the Northern side Hassal Grove would have been a better option but from the investment point of view IMO the 2 areas are similar.

My suggestion to you would be not to overanalyse things and to be careful how much you spend because interest rates will increase further and prices could take a while before they increase again so you want to have as low holding costs as possible.
.
If you are going to spend $400K in Hassal Grove, IMO it would have been better spending it in Wattle Grove even if it meant buying an older place (because WG is closer to the city and rent would be higher).

I don't know if you have any concerns about demographics but another area worth looking at is Punchbowl because of it's proximity to the CBD.

I hope this helps.
 
thanks again Bill.

Looking at Hassle Grove but closer to 300K than 400K. Should rent for round 350 so not too bad. Had a look at a few today. Put an offer on one house waiting to hear back. Needs a bit of work but mainly paint and possibly converting garage into another bedroom (its massive so should be able to keep half of it for one car spot and put a wall in for 4th bedroom).

As for Wattle Grove i really want to keep the purchse to 300-330K as everyone is saying interest rates will rise 1% so don't want to overcommit. I'll let you know how i go!
 
Campbelltown is a mixed bag. There are some nice areas, rough areas and anywhere in between.
I don't think it will easy for outsiders to find the real value.
It was once on the cover of API with a supposedly 20% increase, which was really baloney.
 
Can anybody give me a rundown of what Wattle Grove is like? Is it an equivalent of a Frankston in Melbourne?

It's closer to the CBD than Frankston, it's probably the same distance as Dandenong.
This suburb has a high % of defence personel due to it's proximity to Holsworthy Barracks.

Nice leafy suburb IMO, close to the M5, it has a small shopping centre with something like 20 shops and Coles. The nearest major shopping centre is Liverpool which has been expanded & refurbished and is quite nice.

The closest train station is Holsworthy so if you buy in Wattle Grove only it's south side will be walking distance to the station.
When I was looking there it was hard to find properties which I liked and with proximity to the Holsworthy station.

Holsworthy is an older suburb but getting a new look as many properties are demolished and rebuilt as PPOR's. Both subs are mostly owner occupier type with not many units or townhouses. The express train takes 40 mins to the city and 20 minutes to the airport
The M5 is very busy but there are plans to widen it.

Rents have traditionaly been above average in these subs due to the leasing by the defence housing authority, but I think DHA rents are falling behind these days and this is the reason I haven't bought any of their properties.

I hope this helps.
 
Last edited:
Hey all.

After much research and lots of changes of mind i've decided to buy in my home town Sydney.

I've narrowed down to a few suburbs.

I am spending up to 400K but preferably aorung 350 would be nice.

Done my research and purchased a couple of property reports (i know not always correct but give me a bit of a starting point!) and narrowed it down to the following:

1) narellan vale
2) wattle grove (possibly a little too pricey)
3) hassal grove
4) hinchinbrook


Each has a potential yield between 5 and 5.5% (hinchinbrook probably the highest).

Now in the back of my mind i still have Melbourne but thinking it might be easier to purchase closer to home cos my other IP is in QLD.

Does anyone have any thoughts on any of these areas?

Thanks!

Hi

Wondering if you have considered the total return on an investment as apposed to just the rental yeild? Capital growth should be considered as in the long run it can make a massive difference. I have included this link fyi - Property Capital Growth vs Rental Yield ( Positive Cashflow) Debate
 
Top