Haven't read all the post...but to be honest; i can't see anything wrong with your original post to buy the Hornsby unit.
Yes there are plenty of flashy strategies out there- granny, renovations, subdivisions etc....but given this is your 1st purchase, and you seem to know the Hornsby area well and Hornsby is a growing area in terms of CG i really can't see any issues.
if your considering on buying a house and developing etc...One important thing about Hornsby council as i have built and developed with this annoying council in the past;
1. They have the 60% ratio rule...meaning only 40% of the land can be used in your sq meters cal.
2. The area is known to have LOTS AND LOTS Of rocks and unique heritage listed trees, so even if you buy a 900 sq meters land it might be "unsalable"
3. Section 94 is expensive
4. Neighbors may complain, if you over develop.
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http://www.realestate.com.au/property-apartment-nsw-hornsby-112695599
Basic details
* Advertised for 28 days, given it's the x mas break, it probably only been through the market for one week, hard to gauge what price the vendors are happy with at this point
*Owner bought for $392 in 2008
* Hornsby district has experience roughly 5% CG per year on average. Breaking it down to units and houses- Units in this area has actually out preformed houses due to it's low entry prices for a Sydney 2 bedroom unit.
* Hornsby is great for it's close proximity to some of the best schools around Sydney - Hornsby Girls ( Selective), Epping boys, James Ruse ( Number 1 Selective in sydney) , Bulko Hills high etc...
Pro
* Not on the main road
* close to W/f and train station
* Hornsby Station is consider one the major station in the north west /hills area
* Nice brick construction
* Low strata given the size of the unit
* North facing
*2 bathrooms!!
* Units ranging from $420,000- $500,000 2 bedroom, 2 bathroom and 100 sq meters is not to bad considering the area, transport and reputation.
* High ceiling.
Con
* Slightly expensive --- $460-465k is more the market price for it's condition
( 3/8 BELLBROOK AVE - Sold for 467k in march 2012... 16/8 WATER ST- sold for $448 in June 2012) + given no more FHOG. --- Hornsby is not a keen investors hub, def a lot more PPOR purchase and FHOG.
* Not the best rental yield at roughly 5-5.2%
In my eyes; Having the right strategy Or having at least " A strategy" is important, but local knowledge can not be overlooked- every deal has it's merits.... always focus on the property in question and break it down.
Regards
Michael
