Inner city or inner west Sydney?

[timely]

Hi All!

I can borrow enough, to cover a property up to 650K, for investment.

In the inner city, like Alexandria, relatively modern 2 bedder units go for the low-mid $600k (more, if new).

It's been growing a lot especially in the last 12 months (17%), and some think it will keep growing, but at the rate it's been going recently I think it may be too late now. Is there that much room left for a 2 bedder apartment of $600-650k there to increase? Strata is also higher, at least $1K.

That's why I've also been looking in the inner west, out towards Marrickville and surrounds, where 2 bedder units are older buildings, and go for the mid $400k to mid 500k. The growth here has been between 5-10% in the last 12 months. Also, it means I'll pay it off sooner.

Is it a better strategy to buy for over 600K in parts of the inner city and get something relatively modern, or to go inner west and get something older, for less? I'm more interested in CG than anything else.

A third option would be to buy a brand new one bedder for up to $550K (which is already hard to find) close to the city like in Alexandria or Waterloo and get the FHOG of 15K as well as the stamp duty exemption, and move in for 6 months at first - but I'm wary that CG may be limited due to supply of new apartments and the premium for buying brand new.

What do you guys think?

 

[devank]

What do you guys think?

I think you can't go too wrong with anywhere between the City and Parra (or even Penrith)!

 

[Propertunity]

It's been growing a lot especially in the last 12 months (17%), and some think it will keep growing,

Look in any full real estate cycle (on average 7-12 yrs) of say 10 years, 6 of those years will be flattish - either slightly falling or slightly rising. Only about 4 out of the 10 years show good growth. That's why RE should be considered as a long term investment and why you can lose money if you only hold for 2-3 years. (although you can also double your money in 2-3 yrs if you buy at the right time in the cycle).

IMO, there is still plenty of room for growth - and we are in for another strong year this year. This is just a normal part of the cycle.

but at the rate it's been going recently I think it may be too late now.

This is a typical newbie thought pattern, which will lose you money if you continue to hold this view.

Is there that much room left for a 2 bedder apartment of $600-650k there to increase?

A few years ago I was buying 2brm units in the Inner West for $400-430K. Those same units are now $580-620K. I've been looking at some 2brm units selling for $700-850K lately!

Strata is also higher, at least $1K.

That's getting up there, but is representative of newer buildings.

That's why I've also been looking in the inner west, out towards Marrickville and surrounds, where 2 bedder units are older buildings, and go for the mid $400k to mid 500k. The growth here has been between 5-10% in the last 12 months.

Marrickville is one of my favourite investing spots too.

Also, it means I'll pay it off sooner.

Now, why do you want to do that? (unless it is to be a PPOR......and even then)

Is it a better strategy to buy for over 600K in parts of the inner city and get something relatively modern, or to go inner west and get something older, for less?

Personally, I prefer older units in smaller blocks (maximising land component of the purchase price). You can add value with a reno - typically kitchen, bathroom, paint & floor treatment, and get a $2 return in end value for every $1 spent.

I'm more interested in CG than anything else.

Typically newer or OTP, do not grow as much as established, older.

A third option would be to buy a brand new one bedder for up to $550K (which is already hard to find) close to the city like in Alexandria or Waterloo and get the FHOG of 15K as well as the stamp duty exemption, and move in for 6 months at first - but I'm wary that CG may be limited due to supply of new apartments and the premium for buying brand new. What do you guys think?

I'm with you on this - stay away!

Cheers, Alan

 

[elmoelmo]

same here, confused about what to buy

same here, confused about what to buy: a brand new under 550k for FHOG benefit or old established apartment within inner west?

Hi All!

I can borrow enough, to cover a property up to 650K, for investment.

In the inner city, like Alexandria, relatively modern 2 bedder units go for the low-mid $600k (more, if new).

It's been growing a lot especially in the last 12 months (17%), and some think it will keep growing, but at the rate it's been going recently I think it may be too late now. Is there that much room left for a 2 bedder apartment of $600-650k there to increase? Strata is also higher, at least $1K.

That's why I've also been looking in the inner west, out towards Marrickville and surrounds, where 2 bedder units are older buildings, and go for the mid $400k to mid 500k. The growth here has been between 5-10% in the last 12 months. Also, it means I'll pay it off sooner.

Is it a better strategy to buy for over 600K in parts of the inner city and get something relatively modern, or to go inner west and get something older, for less? I'm more interested in CG than anything else.

A third option would be to buy a brand new one bedder for up to $550K (which is already hard to find) close to the city like in Alexandria or Waterloo and get the FHOG of 15K as well as the stamp duty exemption, and move in for 6 months at first - but I'm wary that CG may be limited due to supply of new apartments and the premium for buying brand new.

What do you guys think?

 

[Propertunity]

......confused about what to buy: a brand new under 550k for FHOG benefit ....

Which suburb would this be in?