House or apartment in Sydney?

[Jacque]

Thanks
That was a great help. Other areas may be okay too. What about areas close to parramatta, as that is quickly becoming a second CBD.

I could easily afford a unit in lidcombe that is close to the station also. I have seen a few and they really aren't too bad

Hi Menty

I know the Parra area very well and have bought for many clients here- both units, townhouses and freestanding homes. It all depends on what type of investor you are and what level of control you prefer. Personally, with a max budget of $500K I'd go for the house on land in a good position walk to transport that you can possibly add value to down the track in this area. Keep in mind that most homes in this price bracket are going to require work. Townhomes and villas are a good alternative and rent well- especially around the Wenty/Parra area.

Also check out properties on the train line between Blacktown and Parra. Mays Hill can also throw up the occasional bargain (bordering Merrylands) as well, as can Pendle Hill but you do need to be out there looking regularly. If you want to take advantage of the SD exemption you must exchange contracts before Jan 1 2012. Good luck.

 

[spludgey]

Personally, I would buy two or three investment properties and rent a home. It's quite easy to find investment properties that are neutrally or positively geared at 80% LVR. This means that you could spend $437.50 per week in rent and not be any worse off than you would be if you bought a PPOR. My guess is that you can rent something much nicer than if you bought a place.

Might not work for you, but this is an investment forum.

 

[engelo10]

I agree with spludgey, When putting pen to paper, over the long term you are better buying 2-3 investment properties and renting them out and also renting yourself. Its a sacrafise in the begining for a future gain later. There are plenty good deals out there. Just picked up 2 bed unit in Bradbury for $155k renting for $260 per week, pretty much payes itself off. Can buy 3 of them for under $500k.

Just my 2 dollars haha jks

Regards,
Engelo

 

[cadence]

Originally Posted by menty
I have heard some people comment that one should borrow as much from the bank as possible.

I think the better comment is you should buy the best you can afford ...

The best property you can afford may be one where you are getting a maximum loan from the bank ... but it may not be ... as you also have to take into considerations other financial commitments in life.

Ultimately, to get the most benefit (ie: CG), you have to be able to afford to hold it for at least mid-long term ... no point getting a max loan when you can't keep up with repayments

 

[Aaron_C]

Usually what you can afford is more than what the bank is willing to lend you.

 

[Rolf Latham]

Can anyone comment on this?

Why do people not dump all the savings in the mortgage to minimise interest paid to bank and also to own more of the property quicker??

usually best to park in an Offset account, thus giving you the flexibility to ove the cash around after without tax implications

ta
rolf

 

[Rolf Latham]

Parramatta's been Sydney's 2nd CBD for some time.

Personally, I'd choose an Ashfield (or Inner West) unit over a Lidcombe unit. Ashfield units have out-performed Lidcombe units over the last 15 years......but there is a lot of competition from other buyers.

Ashfield is older, more established stock generally with less capacity to build new mid rises.

Flemington being an adjacent suburb to Lidcombe shows how much new stock can be developed in an area that still has predominantly lower cost houses/and which can be amalgamated for mid rise units. Ashfield doesnt have that, thus demand vs supply in Ashfield is likely to continue to provide for improved CG.

ta
rolf

 

[Rolf Latham]

I am not sure how feasible my plan is. I have heard some people comment that one should borrow as much from the bank as possible.

indeed, but with a couple of caveats.

if you need 200 but can borrow 300 on LVR and serviceability, this will improve your longer term tax position when that property becomes an IP.

In addition, you are managing RISK, since properly structured, the extra cash not used will sit in an offset account thus making provision for challenge or opportunity.


ta
rolf

 

[jacbmw]

Why does it have to be Ashfield?

Why not the generally expected hotspots of Marrickville, Dulwich Hill or other suburbs on the proposed Light Rail? Gentrification has been happening for a while, but still some growth left.

$400k might be pushing it for a 2 bedder, but still great growth potential in that corridor.

 

[jacbmw]

Why does it have to be Ashfield?

Why not the generally expected hotspots of Marrickville, Dulwich Hill or other suburbs on the proposed Light Rail? Gentrification has been happening for a while, but still some growth left.

$400k might be pushing it for a 2 bedder, but still great growth potential in that corridor.

 

[thinkinghard]

Why does it have to be Ashfield?

Why not the generally expected hotspots of Marrickville, Dulwich Hill or other suburbs on the proposed Light Rail? Gentrification has been happening for a while, but still some growth left.

$400k might be pushing it for a 2 bedder, but still great growth potential in that corridor.

hmmmm...that famous Light Rail extension...almost 2012...
any inside information

 

[devank]

Flemington being an adjacent suburb to Lidcombe shows how much new stock can be developed in an area

Corruption played a role in those developments which shouldn’t have happen!

 

[H2O]

Why does it have to be Ashfield?

Why not the generally expected hotspots of Marrickville, Dulwich Hill or other suburbs on the proposed Light Rail? Gentrification has been happening for a while, but still some growth left.

$400k might be pushing it for a 2 bedder, but still great growth potential in that corridor.

not sure if the new light rail can help much on CG...

 

[BuyProperty]

Can be a difficult question to answer, but it depends what you are after, as well as your serviceability/affordability

I would rather go for a 1 bedroom apartment within 5-10km of the CBD, but not within the CBD itself, rather than a house in the outer suburbs. Make sure you look at the demographics too. This is an important aspect when choosing to buy.