Buying two bedder in Hornsby Area

[Dynasty]

Hi all, I am looking to buy my first home (apartment) in Hornsby area. So far I have seen few old apartments in Waitara and also considering off the plan in Asquith. In Asquith, 2 bedder is selling OTP for $690k for 115sqm (85 Internal + 30 Balcony). The property comes with single car space and is not too far from the train station and Coles supermarket.

Can someone shed some light whether $690k is a reasonable price for Asquith? I will live in this unit for at least 10-15 years with my partner and a baby who is currently 6 month young. I like the area but bit anxious & don't want to overpay.

 

[Propertunity]

Can someone shed some light whether $690k is a reasonable price for Asquith? I will live in this unit for at least 10-15 years with my partner and a baby who is currently 6 month young. I like the area but bit anxious & don't want to overpay.

You can pick up a 2brm unit in the Hornsby and surrounding areas for $550-650K on the second-hand market.

This means buying OTP at $690K you'd be paying around 10% minimum as a premium for buying brand new & shiny.

If it is for your PPOR for the next 10-15yrs - fine - buy what you like and what makes you happy. BUT that is the reason you stand to make no capital growth for the next 3-4 years minimum, because all that money goes to the developer's bottom line profit.

 

[Dynasty]

This means buying OTP at $690K you'd be paying around 10% minimum as a premium for buying brand new & shiny.

Hi Thanks for your response,

The property is not due for completion for another 18-24 months, do you think by then the market value would be close to the price ($690k). I completely understand that its hard to predict the market, but looking at tons of apartments coming in Asquith in 5 years or so, is there any chance that property value would not go down?

Just to add the bit, the apartment would not have any Gym, Swimming Pool etc. What is your general thought about it?

Thanks again for your valuable input.

 

[Propertunity]

The property is not due for completion for another 18-24 months, do you think by then the market value would be close to the price ($690k).

This is the BIG question - no body knows. This is a MAJOR risk in buying OTP. You agree to buy for $690K now but when the bank does a valuation in 2 year's time it may only come up at $650K if the market moves down a little by then. Then you are faced with coming up with more of your own cash to buy the property.

I completely understand that its hard to predict the market, but looking at tons of apartments coming in Asquith in 5 years or so, is there any chance that property value would not go down?

Property goes up, property goes flat, property goes down, overall long term trend is up - but for a 2 year period - WHO KNOWS?

Just to add the bit, the apartment would not have any Gym, Swimming Pool etc. What is your general thought about it?

The property does not exist at present. Better not to have pool, gym, spa etc. But IMO, better to buy existing - at least that way you know what you are buying. It is just lower risk.

 

[nww]

You just missed out on a 2 bedder townhouse for $646 http://www.realestate.com.au/property-townhouse-nsw-hornsby-118540963

This is what happens when you don't choose a good agent , should have sold a lot higher than this.

Asquith , is this the one next to the High school.

They are popping up all over the place around there , new one across from High school to start shortly , you will find them right along the Pacific Hwy to Berowra soon.

Some better buys with older units than these new OTP ones in my opinion.
Do your homework on stratas , Most are around the grand mark compared
to 600 for older ones.

Check to see if there is any townhouses in Galston road still available price was around $640,000

 

[Jacque]

Dynastly, I'm guessing you're using the FHOG of $15K to prop up your deposit here hence your preference for OTP and new?

If so then I can't understand buyers who still prefer to pay a premium price (up to $150K in this case compared to older properties) that well eclipses the measly $15K cash injection here....

If not, and you have sufficient deposit, then consider older units in these areas as you will buy for today's dollars and know what you're getting into (strata fees, completed builds, established surrounds etc) - there are still some great buys if you put the work in and know your market.

Agree with Prop here, in that OTP can be risky and no-one knows what the property market is going to be doing in 2 years. That's a given. Good luck.

 

[Dynasty]

Dynastly, I'm guessing you're using the FHOG of $15K to prop up your deposit here hence your preference for OTP and new?

If so then I can't understand buyers who still prefer to pay a premium price (up to $150K in this case compared to older properties) that well eclipses the measly $15K cash injection here....

If not, and you have sufficient deposit, then consider older units in these areas as you will buy for today's dollars and know what you're getting into (strata fees, completed builds, established surrounds etc) - there are still some great buys if you put the work in and know your market.

Agree with Prop here, in that OTP can be risky and no-one knows what the property market is going to be doing in 2 years. That's a given. Good luck.

That's right Jacque, FHB with the fear of missing out

OTP would give me some much needed time to save for the deposit but I understand $690k for 2 bedder would not be a smart choice in this area.

Thanks all for your valuable input, I might give it a miss and save more for an established property.

 

[cadence]

a few years ago, I wouldve considered a 2br unit >$600k this far from city to be ludicrous ... but times have changed

if you can afford to buy now, then I would opt for an older style unit and it sounds like you might be lucky enough to pick up a townhouse for that budget which is great as you get a bit more space and land content

but if you cant afford to buy now and want to get your foot in the door and you like the area, then I dont think this development is too unreasonable for today's standards in Sydney

a reasonable size, close to station/transport, minimal facilities which should keep strata on the lower end

the question is what else can you buy OTP for that price ....a 1br OTP Chatswood apartment is asking $800k now ...

 

[gronk007]

650k plus for an apartment in Asquith??

Lived on Hornsby for 20 years, went to school at Asquith Boys in the mid 90s..

I think I just fell off my chair...

There's surely got to be better value for a 2 bedroom elsewhere around Hornsby? Glut of stock though.

 

[Dynasty]

650k plus for an apartment in Asquith??

Lived on Hornsby for 20 years, went to school at Asquith Boys in the mid 90s..

I think I just fell off my chair...

There's surely got to be better value for a 2 bedroom elsewhere around Hornsby? Glut of stock though.

I agree with you, it is absolutely insane that RE agents are trying to trap people with apartments in Asquith for that price. Sure when it comes to valuation upon completion people will get shock of their life after realising that they have overpaid for the property.

I don't know why investors will be so keen to buy in Asquith, looking at how Waitara and Hornsby is flooded with rental properties I hate to think what will happen to rental market in say 3-5 years when all these new apartments in Asquith, Waitara and Hornsby be ready.

 

[lawmich]

Asian buyers will buy because of the schools in hornsby I think. Seriously they equate school popularity with their children success. I

 

[Dynasty]

What will be your view if the property price is $650k for 2 bedroom, approximately 130 SQM area in a quiet street of Asquith.

 

[Jacque]

Why not buy something closer to Hornsby and rail for less than this?

eg: http://www.realestate.com.au/property-unit-nsw-hornsby-119291915#

Good location in established block (not sure about the updated tag though- looks like the kitchen still needs a makeover )

 

[roberto]

I bought a 2B, 2B, 2C apartment to live-in, in a Hornsby's high raise building on the Pacific Hwy in 2006 for $315,000. 9 year later it is worth over $600,000

People said it was a bad purchase because of the high strata, hwy noise, etc. I wanted to be close to the station, to the shopping and to all amenities Hornsby offers, so I bought it anyways. It was a life style decision instead of an investment decision.

I would not invest in Hornsby nor buy off-the-plan at the moment, but if you want to live in Hornsby, buy something you are happy with.

For example, I invest in houses and townhouses because of the land content, but I live in apartments because I hate housework and try to spend most weekends away.

 

[windyzz]

Agree I don't think it's good time to buy OTP anymore. I believed It's already in the peak of the market (but really i could be wrong).

If you're buying to live and taking the benefit of the FHG, then I suggest you to compare the price with any surrounding similar apartment with 2 bed 2 bath which are relative new (Around 5 years old), if the differences in price is relatively small, then you're safe to get the OTP one.

On the side note: Bank do not compare the value of a brand New apartment with the very old established one (20-30 years old).

 

[Dynasty]

Thanks all, as always very helpful tips from most of you.

Cheers