Home in ponds or Kellyville

R

rajmegamind

History first:
I'm recent migrant moved to Sydney. Now working for past 6 months as full time. Got a Pre loan approval for 420 K which i believe can bump later with another 6 months in service.

Facts:
We are young couple with a 1 year baby. And my month income after tax is @ 6000 where we are currently renting a 1BHK unit in North Ryde at @ 1500. Which we are comfortable with. I'm currently working in North Ryde area. And also education is most important to my kids, so was looking at the kellyville high school which was reported good. Have a cash of 30 K towards the loan deposit.

Mega plan:
Planning to buy a home with low investment cost North West area. Where i will try to take advantage of the govt grant 15k and less stamp duty. Will try for 20 % to avoid LMI if less then will buy along without 20 %.

I like to pay around 2000 -2500 EMI towards the loan , so i was looking at the property at ponds for a 2 bedder at 3.85 which is sold by the ponds themselves. Where i will be paying only 2000/month towards the loan for 350K. And no extra cost towards strata or other community fee
But my dilemma is what happens in few years when the family gets bigger, might need a extra bedroom. So i was also looking to buy a land in the same area in kellyville or ponds.

KellyVille Land http://www.realestate.com.au/property-residential+land-nsw-kellyville-2883567

question to experts:.

1.if i buy land in ponds/kellyville. So how much it does cost to build a basic three bedder ? in that area.
2. I like to go with the basic to cut the extra cost such as drive way or blinds. which i can do it though a third party , hoping to be less .
3. if i buy a 2 bedder with ponds with the land area around 200 mts with the build up area of 102 sq mts. can i add another bedder with council approval after few years ?

Future:

May be they might have a rail in next 10 years so that i can come in public transport to work in Ryde.:D
Hopefully to get a property appreciation on next 10 years.:D


Note:
The 2 bedder in ponds was sold in 340 K in april now 385 which i din't get lucky. next release was slated next year with price of 410K, which im hoping to buy.


Or is there a problem in the Mega plan ??:confused:

May be i'm asking too many in single thread :D
 
A further 6 months in the job will not affect your servicing unless there is a bonus/commission component which you need to demonstrate.

A single and modest 3 bedder will cost you around $120k plus around $30k in basic site and additional costs.

Why are you looking to buy in Kellyville?
 
Shahin,

Was looking at house without a strata which should have a appreciation in long term. I don't mind the land area since im looking at the total loan cost and my monthly payment .From my research NW sydney like Glenwood,ponds,kellyville seems to get more Capital appreciation and also which is closer to my office commute from North Ryde. Do you have any suggestion towards the area?.

My Bank loan consular told me that minimum of one year was required on full time for loan. but later came back saying that they can do exception to my case. So was hoping that loan can be bumped after another 6 months.
 
TheFinanceShop said:
A further 6 months in the job will not affect your servicing unless there is a bonus/commission component which you need to demonstrate.

A single and modest 3 bedder will cost you around $120k plus around $30k in basic site and additional costs.

Why are you looking to buy in Kellyville?
Click to expand...


Does the Basic for 30K include the fencing , driveway ? or just a Consul /development fee in this case ?
 
$30k would cover fencing, concreting, minimal site/excavation costs. DA is on top of this, you need to add fat for all the little things that you may need. Demolition would be $15k if applicable. Think about ducted air conditioning - that would be around $7k.
 
rajmegamind said:
Shahin,

Was looking at house without a strata which should have a appreciation in long term. I don't mind the land area since im looking at the total loan cost and my monthly payment .From my research NW sydney like Glenwood,ponds,kellyville seems to get more Capital appreciation and also which is closer to my office commute from North Ryde. Do you have any suggestion towards the area?.

My Bank loan consular told me that minimum of one year was required on full time for loan. but later came back saying that they can do exception to my case. So was hoping that loan can be bumped after another 6 months.
Click to expand...

Im sure the BA's on this site can give you a more educated advice on area. How are you going to buy land and build a new house with $420k? I personally would look at older stock in a more established area.

Re the loan - that is not necessarily correct and it depends on the lender. I had one case recently at 95% lend and on the applicants had been in the employment for less than 3 months but they were in their previous job (same professional) for 3 years. It is circumstantial and dependant on the overall strength of the application.
 
Hi Raj, 2br would be unusual for the area, there are 2br units around $330k+ in the next suburb of Kellyville Ridge. There are a few big unit developments coming along too. I understand land in the Ponds starts around mid-$300k. Commute to North Ryde would be at least 45 mins. I would suggest you look at entry-level homes in Acacia Gardens, Quakers Hill - you could get a modern 3br townhouse or duplex, or an older house with land. As a local, I can recommend the area for lovely people, multi-cultural feel, schools and facilities, there are great restaurants and pubs, and well-connected to the greater area by motorways, limited rail services and express buses (although I understand the commute to the city is a pain, most people I know don't work there). It's great for first home buyers and upgraders alike. All the best for your search.
 
While I know this is a property investors forum i think you need to ask the question as to whether moving now is in your best interest?

Currently you live in the same area as you work. I'm guessing your commute is minimal. Your child is only very young. A commute to North Ryde from Rouse Hill is going to be well over an hour on public transport.

Just my suggestion but maybe it would be better in fact for you to rent for another couple of years. Reasons being:

- less commute = more time with your young family.
- Save additional money
- Personally i don't see great capital gain at the Ponds for a few more years. The train is at least 10 years away, and there is still a lot more land to be released. If there is no pressure due to scarcity of land then what is there to drive up prices.

Maybe you can buy somewhere else from an investment point of view, get the tax advantages, and then sell and move when you really need to for schools.
 
Agree with the above post. Im also seeing a large number of people investing in property in areas that they wouldnt necessarily live in (I wouldn't include the ponds as part of those suburbs though) and renting close to the city due to work commitments. They are getting the best of both worlds. Negative Gearing, lower entry point, etc whilst also living close to the city.
 
Thanks Guys.
You really made me to think with my another side of Brain. I was doing my research for 2 weeks now. City seems to be better off rather than killing time on the road to ponds/kellyville. Peak traffic through Castle hill is really bad.

@monty python, Saying that 2 bedder @ 330 K in Kellyville ridge. Any pointer please.
And also about the 2 bedder in Ponds interms of investment, People has bought this 2 Bedder @ 3,41K at April 2012, now the last release was @ 3,81K. I mean they already made a ~11 % profit right. With the land selling at 3.50K, why do you see that 2 bedder house without strata wouldn't appreciate in time , given the past history.

@Blurbman, Any Investment property areas that you suggest to take advantage of this FHOG .

Starting looking at near by acacia Gardens/Quaker hills as options.

And also i was also looking at few properties in Wentworthville & Girraween/West mead. Any points towards the suburbs, heard that the school in Girraween is really good one.

Last question. both property in same area.

1. http://www.realestate.com.au/property-townhouse-nsw-girraween-110328409
2. http://www.realestate.com.au/property-villa-nsw-girraween-111178051

Property 1 has been in market for sometime and dint move, but why is the property in 2 is so much higher than the prop 1 ?.
 
That property 2 looks like a very good profitable small development.

If you have the cash, do a similar development in the same area, sell 3 townhouses and keep 1 for free. :)
 
I should also add that an $80k premium is realistic for an extra bed, 2nd car space and a master ensuite.

This also demonstrates why you shouldn't buy a block of land and under develop it. SpEnding $160k on a new 3 bed on a $350k block of land is underdeveloping. Build a larger house for a little bit more and obtain a much higher valued property on completion.
 
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