Husrtville, Penshurst or Hornsby??

A

anguang01

Hi Guys

I narrowed it down to 3 areas that I'm pretty comfortable with in terms of price and location.

I had a look at the CG and Rent Yield in all 3 location using Residex.

Hornsby - Area grew alot in the last 2 years - CG last year -5.05% last 10 years 5.91%, Rental last year - 4.26% last 10 years 5.7% Overall Horsnby last year -0.90% total last 10 years 12.11%.

Penshurst - Inspected about 6 properties there. 1 and 2 bedrooms unit. Close to station and minutes to the Hurstville westfield shopping center. Queit street. Price around $220k - $240k. CG last year -3.55% Last 10 years 6.16%. Rental return last year 4.21% Last 10 years 6.23%. Overall last year 0.53% last 10 years 12.02%.

Hurstville - Close to station, convenience to many shops. 1 bedroom unit around $240K about 5 years old building, 10 units in the blocks i personally like this one. The CG -4.5% last 10 years 6.86%. Rental return last year 4.3% last 10 years 4.88%. Overall last year -0.32% and last 10 years 12.19%.

I know all these 3 areas are not a popular area for many high income earner, I'm only an average earner trying to make a better life for myself. These are the 3 areas that i'm know and comfortable with and price is right for me. I'm aiming $200k to $250k.

I'm really here to get some honest opinions from all the great minded ppl here. Some might say to me with that price range i better not purchase any until i can increase my budget, however the way i think is if i dont start now how am i gonna be able to increase my budget in the future? my salary are going to increase little bit every year.

This will be my first investment property.

Hope can help.

Thank you
Tony
 
Tony, if you're considering places like Hurstville and Hornsby (suburban centres with big shopping centres, etc) have you also thought about Parramatta and next-door suburbs such as Harris Park? I'm seeing some older units (standard 2 bed units in small blocks) selling for less than $200k but renting at around 5, 5.5% yield in Harris Park.

I used to go to school near Hornsby (when it was a dead hole back in the 90's). It's a lot nicer now, of course, but I just don't see it turning into a business centre like Parra or Hurstville. A house around Hornsby (say a little further up at Mt Kuring-gai, Mt Colah, Asquith, etc might be good for future CG, though it's a lot more expensive.
Alex
 
Hi Tony,

We all had to start somewhere and buying a property for quarter of a million bucks is a big achievement. My opinion is you should definately buy now. One, because time IN the market is so important in RE investing (so the sooner you get in the better) and two, because it's a great time to buy as in many areas of Sydney prices have been significantly reduced over the last couple of years. You seem to have a fairly wide area that you've looked at (Hornsby being in the north and Hurstville in the south). I've just had a very quick look at a Residex report for you and have found several places within your price range with higher capital growth rates over the last ten years. I find this measure to be a better indicator of future growth than the CG rate for the last year or two. If I were you and wanted to build up my assets and equity as quickly as possible, I'd be looking at areas that are about to see big infrastructure changes and areas that have shown above average CG rates.

All the best and enjoy the journey!

Kelly
 
I don't know about the figures you are quoting. Hornsby- 5.91% in the last 10 years. Is that for units, houses, or combined? In the time when I was looking, there was very little CG for units at a time when Sydney was booming.

Hornsby is a units ghetto. It's had major infrastructure changes (a huge shopping complex) but without the gains one might expect from such changes.

How do those CG figures compare with Sydney as a whole?

I'd also do some careful research about where CG is occurring. Meriton and others have been building in the area- but existing (aging) units may not have been achieving much growth. Perhaps the median reflects what new high rises have been doing. Make sure you compare like with like.
 
there has been some huge developments in waitara right next to hornsby. down the edgeworth david road (from memory), can't miss em. it might cause some oversupply in the area, though im not too sure how they've been selling. last time i was there they were still building more blocks. might be somthing to check. trying to rent out an older apartment when there are newers ones just down the road might be a consideration too, if you're not looking at the newly developed ones.
 
If often wonder about an oversupply there, there is always a new block going up somewhere in the area.. Who is renting them all? after all the only thing at Hornsby is the Westfield? Hornsby isnt close to anything either

Could I offer Miranda as another suggestion that meets your criteria? Rental demand is strong. I went looking for a units there to rent myself and there was always 4-5 people looking at the same time. I ended up going to Menai instead.

Miranda is only 35-45 minutes from the City, 5 minutes from Cronulla..
 
Used to live at Beverly Hills not far from Hurstville for the first 25 yrs of my life so know the area quite well. I would say it would have been a place to invest in 20 yrs ago however to me it has become a less than desirable place. Meriton amoungst others have got in there and sold cheap stock which has attracted that end of the market. It has become very very Asian orientated. Generally this is neither good nor bad, however both my wife & I have done business in the area in recent years and it can be difficult to deal with some of the new australians in the area.
Down the road at Penshurst my brother has had an ip for 20 or so years. I wouldn't say he has exactly wonderful CG in that time, probably paid too much in the first place. Having said that I love the feel of Penshurst these days. It has gone in the opposite direction to Hurstville. It has a nice village atmosphere. and it seems to be attracting a younger crowd which is always good for CG. They have spent a lot of money renovating the pub in the main street. (the bistro food is great!) and there are a few little cafes around. It has its own train station within walking distance of most of the suburb. On the southern side of the station are a fair number of federation homes and attractive leafy streets which are always going to appreciate in value and this would have to drag the prices of the adjoining units along with them.
Hornsby I don't know a lot about but it is part of the growing North west region of Sydney.
Parramatta is an area That I have been looking at myself ( just missed out on a couple of unrenovated units recently. one sold arond $195K & the other around $175K. both 2 bedders with garages) You could have spent $20K on a nice reno on either one and be getting around $220 to $240 pw rent. It is generally accepted that Parra is the "centre " of Sydney these days and like the other areas mentioned will always be in demand.
The common link to them all (except Penshurst) is that they have a big Westfield literally next door to a train station so they are always going to be in demand but will also be a little cheaper to buy because of the higher density.
In turn you'll probably have a higher turnover of tenant and more wear & tear on the property. Unless you are prepared to lower your yeild to retain a good tenant for a longer period . For me i would choose Penshurst over Hurstville every time or somewhere close to parramatta

Regards
Greg
 
what Grego said

Hurstville is a very crowded place with almost every other merchat competing only on price.

Penshurst still has soul, Hurstville has pretty much sold its to large scale development

ta
rolf
 
Hi Guys,

Really appreciated all your help and suggestion.

I thought I had it down to 3 suburbs, now i refined my research and concentrated on area with more CG.

These areas include Parramatta as many have suggested.

My only problem is I don’t know other area that well, I thought I should stick to an area that I’m comfortable with.

Many suggested Hurstville and Penshurst showing low CG, i do agree by look at residex. However do you guy think these area will grow with the number of migrants coming in from Asia. I think Hurstville and Penshurst would be their first choice in buying.

What other areas would you guys suggest? I went and have a drive around Parramatta today but I find it a bit dark and dangerous. Just my feeling.

Thanks again!
Tony
 
May be go to open houses in Parramatta areas as well as keeping a lookout on the three suburbs you are interested in.

I think if you can grab a bargain in any area, you have already made a capital gain. You may be able to find a bargain in the three areas you have chosen. If your investment career is not going to end after buying one investment property, it's probably worth keeping a lookout on other suburbs as well.

And when you are satisfied with numbers, calculating the amount of money to be made over the year including all the tax deductions, you can go and buy something.

I
 
Hi Angu

I can't comment on southside as I don't know it at all but am familiar with Parramatta and Hornsby areas. I would stay away from Parra myself- too many highrises, too much rental competition- mind you, please note that this is my opinion only.
For my two cents, Northmead represents a better buy. In between Baulkham Hills and Parramatta, it's quieter, still close to transport and great amenities and is still affordable in your price bracket. Look for a unit in a smaller block (better land value content) that's in a quiet street, walking distance to bus stops and preferably local shops. Popular suburb for rentals, but often overlooked. With only 55 unit sales in 2005 the cg and yield figures also aren't enough to base an opinion on but the fundamentals of the suburb are sound. With the continuing upgrade of Windsor Rd and the proximity of this suburb to both Parramatta and the popular and expanding Hills suburbs, it would be my first pick.
Best of luck with your search. It can be a very exciting time :D
Make sure you invest in some recent sales data (HomePrice Guide, RP Data and Residex are the best) and watch results in the Sat and Sun papers. Seek rental appraisals from PM's (preferably more than one) and search for features that tenants like ie: own laundry, carspace (preferably LUG but your dollars may not stretch this far) balcony, privacy, cleanliness :) heating/cooling options, living rooms big enough to hold dining suite and lounges.

Keep us posted!
 
Hi

Have you thought about Penrith? On an Expressway ( M4 - I think) , railway line, and has a pleasant shopping centre (Penrith Plaza) and near the Blue Mountains. It must be roughly the same distance as Hornsby from the GPO.

Ciao

annE:) :) :)
 
annE said:
Hi

Have you thought about Penrith?

It must be roughly the same distance as Hornsby from the GPO.
Click to expand...

I wouldn't think so?

I grew up in "the Shire" and used to think that Hornsby was the end of the earth. Now that I'm familiar with the area, it's not that far from the CBD - 45-50 minutes by train (not express) I would think, a 45 minute drive to the airport. I would think that Penrith is a fair bit further (both time and distance) than that. Perhaps I'm suffering the same thing...

Cheers, Barracuda
 
Barracuda said:
I wouldn't think so?

I grew up in "the Shire" and used to think that Hornsby was the end of the earth. Now that I'm familiar with the area, it's not that far from the CBD - 45-50 minutes by train (not express) I would think, a 45 minute drive to the airport. I would think that Penrith is a fair bit further (both time and distance) than that. Perhaps I'm suffering the same thing...

Cheers, Barracuda
Click to expand...

I'm with you. Penrith IS very far away in my opinion and everyday there is some sort of drama on the M4.

I only just moved out of the Sutherland Shire and my other 1/2 lives in Hornsby. When I first started seeing her I thought it was the end of the earth, but Hornsby isn't that far from the City.
 
Hey anguang01, im in a similair situation to you and doing a bit of research. frankgrimes pointing me in the direction of this forum and lent me the jan somers books which i will be reading shortly after my gf finishes them.

My gf and i were thinking of buying a unit and live in it for 6-12months get the first home owners grant then move out and rent it out, this was mainly looking in the hornsby area. Some things said may defer the final decision

Will be keeping an eye on this thread and welcome more thoughts on the situation

Cheers
 
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