First Home - Homebush West or One Minto

[joe_1010]

Hello Investment Hero’s,

I am looking at investing in my first home in Sydney. I want preferably live in a new home and my budget is $450K max.

I have looked at Homebush West and can only find off the plan apartments which are 465K+, other apartments which are less than 10 years old are around 410K-420K +stamp duty since I am looking at 2 bedrooms + 2 bathroom apartments (2 bathrooms and strata not more than $850 per quater).

In One Minto I can see new 4 bedroom + 2 bathroom houses and a block of land for 450K and can also take advantage of the FHOG which I tempted to take advantage for.

Ideally I would like to live in the property for about 7 years before I make it a rental investment property or sell it.

Which property do you think will be a good Investment both rental income wise and capital gain wise if I decide to sell it?

Really appreciate your feedback.

 

[bits1010]

Hi joe_1010,

I am in the same boat as you, however my rule is for PPOR is if I need to get a mortgage for it I will want something with land value. i.e. no strata and not new developments. You are paying off developer's profit, and even strata is a pain, both financially and mentally.

For me, I will save enough deposit so I can buy a standalone house with decent size block of land, you're looking at 450k max already, so another 150k will get you a decent house, even 450k might get you a old house in western Sydney.... (might not even as far as Minto). Do a bit of reno yourself so you can live there.

Some old houses/duplex with small blocks of land (some with reno done already) in Belmore, which is close to Homebush west, is in the 400k range. At least you can avoid strata pain ? I am sure these houses is still larger than the 2 bedder you are looking at HBW.

One Minto is far from train station (not walking distance), and old townhouses within walking distance from Minto Station is selling for 200-250k at the moment. I am even ignoring the "cultural features" of that suburb. The land size of One Minto is so small it has very limited development opportunities.

If I am you I will rent and save, try to rent a (cheap OR/AND new) 2 bedder, and sub-let another room out and save more money.

 

[Elstupido]

Homebush west:

Good things:
1. Close to amenities: DFO, olympic park, IKEA within 5-10 mins drive.
2. Good schools in the neighbour suburb: strathfield, burwood and homebush.
3. Strong rental demand from migrant (chinese, indian, srilankan).
4. M4 and parramatta road are nearby
5. Sydney market, good asian restaurants

Bad things:
1. Unclean (lots of grafitti, too many cars parked off st, rubbish on the street)
2. Train station has no lift
3. Train is only every 30 mins during peak hour
4. Air and noise pollution
5. Too many unit

 

[devank]

3. Train is only every 30 mins during peak hour

Trains are more frequent that 30 mins. I think there are about 5 or 6 services in an hour any time.

It used to have high crime rate due to a particular 'physically massive and strong community' but they are all moved out now.