IP in Sydney up to 500K

I am looking for another IP.
I am open to suggestions apartment, duplex, unit etc but only up to 500K.
Idealy in 300 - 400k range.

It has to be closed to a train line.
Not surrounded by government housing.
Close to a major shopping centre.
Has a good public school.
Good rental return.

Can someone give me some idea where I should start looking please?
Has the price moved much in the area lately?

Thanks.
 
There are probably plenty of places in Sydney that you could find a good IP, but as someone with 2 IPs in Sydney and always on the prowl I'd be trying to buy as close to the city and eastern suburbs as possible where the better cap gains are likely to be offered. (I favour cap gain propsects over yeild where financially tolerable.) Of course, you won't get much in the eastern suburbs for $400K, but inner west offers good proximity to the city and plenty of amenity. A quality apartment in Marrickville might be the go perhaps?
 
There are probably plenty of places in Sydney that you could find a good IP, but as someone with 2 IPs in Sydney and always on the prowl I'd be trying to buy as close to the city and eastern suburbs as possible where the better cap gains are likely to be offered.

Belbo, so what you're saying is the eastern suburbs has the best capital gains and it gets worse the further you get from the east? Do you do the comparison where higher yield allows you to borrow more money, and therefore hold more property? Would it be better to have 500k growing at 10% a year, or 800k at 7%?
 
Hi Alexlee,

Yes, I do think that the east / inner north gets better cap gains and that this diminishes moving west, at least over the long term (decades). I don't think this is an especially controversial proposition. And yes, I do personally tend to side on the cap gain rather than cashflow side of this eternal debate, but I accept that a lot depends on the tax and overall cash flow position of the investor. My favour for CGs over CF is a generalisation, to be honest, and not a concrete rule with me. Personally, I have one CF+ low CG IP and one CF- high CG IP. But what I like about CG oriented properties is the prospect for outperformance. Sometimes they jump up in value so much in a short time that you're well ahead. That sudden growth in equity can aslo help you buy more.
 
Asquith is a nice suburban area, but it's a bit desolate out there. Yes, it's on a trainline, but pretty far up. How familiar are you with Sydney?

But if it's over your budget why bother looking? Not trying to be negative: there are just too many suburbs, so you have to narrow it down somehow. Price is one way. What do you consider an acceptable rental yield? Also, you're in Perth, why Sydney?
 
I am not familiar at all with Sydney.
But I stayed there for 3 months a long time ago.
The last time visited the city was 2 years ago.

I have an IP in Perth and like to diversify a bit.
Also I think Sydney prices will move first before Perth.

I like to get 500/week for 500K, 400/week for 400K vice versa.
Do you think I should go closer to the city?
 
There are probably plenty of places in Sydney that you could find a good IP, but as someone with 2 IPs in Sydney and always on the prowl I'd be trying to buy as close to the city and eastern suburbs as possible where the better cap gains are likely to be offered.

This debate has been done to death and always ends up disproving the myth. Here's the most recent such discussion: http://www.somersoft.com/forums/showthread.php?t=54291

Inner and outer suburbs are different markets at different price ranges and often at different phases of the cycle but I am yet to see any evidence which consistently shows one outperforming the other over the long term. By all means look at the inner suburbs but I certainly wouldn't do it on the basis of perceived higher CG alone.
 
I am looking for another IP.
I am open to suggestions apartment, duplex, unit etc but only up to 500K.
You can get some nice 2brm apartments for the high $400Ks in the Inner West - showing good CG since 2009 on.

Idealy in 300 - 400k range.
Marginal for a 2brm in the Inner West. More like Western Sydney housing for that budget now

Good rental return.
Define "good" please

Can someone give me some idea where I should start looking please?
What are you trying to achieve CG, yield, both? what kind of mix?

Has the price moved much in the area lately?
Inner West has had good CG in 2009. Many other places in SYD are showing the same.

Also I think Sydney prices will move first before Perth.
I tend to agree, but I could be seen as having some bias :D
 
I am looking for another IP.
I am open to suggestions apartment, duplex, unit etc but only up to 500K.
Idealy in 300 - 400k range.

It has to be closed to a train line.
Not surrounded by government housing.
Close to a major shopping centre.
Has a good public school.
Good rental return.

Can someone give me some idea where I should start looking please?
Has the price moved much in the area lately?

Thanks.

Hi,
I think you need to do some more research yourself before you will get any really helpful feedback from the forum. Its much easier to give feedback on specific areas or suburbs, than a general "Sydney" feedback. Sydney is a huge city, with each suburb and area moving at different rates, and providing different investment strategies.
My suggestion would be to spend some time on Real Estate.com.au. Look for properties within your price range, and that will help you to target some specific areas. Then you should get a feel for both the sale price and rental market for these areas. This should help you to narrow your target down to some more specific areas. Given that you know so little about Sydney, I would also recommend that you take a trip over here, and get a feel of those more specific areas once you've narrowed it down a little.
Good luck with your search,
Pen
 
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