Lower north shore unit

[bingomung]

We are looking to buy an older unit ( 3bed 2 bath 2 carspace, internal 120 sqm car space 30 sqm) in lower north shore. It is in a development of 27 and it is around 45 years old. It is 3 mins walking from the station. From the outset, the structure looks ok and we will order a strata inspection to find out if there is any structural defect. We think we need to offer $950,000 to get the unit. I feel like it is expensive to buy a 45 years old unit. But we really like the location and the feature of the unit ( quiet street, larger bedroom comparing to new units, low strata at around $1300, closer to station and the city). We are looking to treat this as investment property now and move in in 3-4 years. The rental estimate sounds low at $720 per week.

The other option is to buy an off the plan in North Sydney which will complete in 3 years. The price is around 1.08 mil ( 2 bed 2 bath 1 carspace around 80 sqm internal) and the rental estimate is $800. With a few development settling around the same time, it may be difficult to lease out the property. We are inclined to get the older unit, if the market does crash in 3 years time, at least we have a place to live in, whereas the OTP is too small for a family of 4.



Any thoughts are welcome.

 

[Propertunity]

Buy the older unit. You can add value thru a reno. You can inspect strata records to see a good 10 yr history at least.

With OTP - you have no idea if it will value up to the price you agree to pay for it now. (so getting a loan may require top up cash from you if the market falls off a bit). There are lots of ongoing court-cases with builders & developers of new units - getting defects fixed.

Buying existing is just lower risk.

 

[Scott No Mates]

120 m2 is a fairly good sized 3 bedroom unit and it is in a well serviced area. Review the BC minutes for any peculiarities and ascertain if there's any upcoming works in the 10 year budget.

This will be a much safer bet than OTP in a hot market.

 

[en_]

Hi bingomung

We have a similar type or property in LNS, built 1972. It rents for 870/ week. That rent estimate might be a little unless you're expecting some good CG

Just sharing.

 

[mbush8]

Hi bingo,
I'm also looking but with the intension to rent out 1 or 2 of the rooms.
Has anyone else looking into doing something like this?

 

[Jacque]

We are looking to buy an older unit ( 3bed 2 bath 2 carspace, internal 120 sqm car space 30 sqm) in lower north shore. It is in a development of 27 and it is around 45 years old. It is 3 mins walking from the station. From the outset, the structure looks ok and we will order a strata inspection to find out if there is any structural defect. We think we need to offer $950,000 to get the unit. I feel like it is expensive to buy a 45 years old unit. But we really like the location and the feature of the unit ( quiet street, larger bedroom comparing to new units, low strata at around $1300, closer to station and the city). We are looking to treat this as investment property now and move in in 3-4 years. The rental estimate sounds low at $720 per week.

The other option is to buy an off the plan in North Sydney which will complete in 3 years. The price is around 1.08 mil ( 2 bed 2 bath 1 carspace around 80 sqm internal) and the rental estimate is $800. With a few development settling around the same time, it may be difficult to lease out the property. We are inclined to get the older unit, if the market does crash in 3 years time, at least we have a place to live in, whereas the OTP is too small for a family of 4.



Any thoughts are welcome.

Without knowing where it is (and we all know that the LNS varies in price depending on location ranging from LC through to exxy McMahons Point!) it sounds as though the older unit may be a better buy. Space is key in these suburbs and 120sqm internal is very generous. If you can value add based on location and size even better. The LNS is very buoyant right now, with most entry level units selling within days of being listed. You're not quite in that price bracket however 3x2x2 units (that second carpark can make a big difference) are sought after and becoming a rarer commodity in the sub $950-1m price bracket in the suburbs between the bridge and St Leonards. Even Pac H'Way Greenwich units are fetching some extraordinary prices compared to 12mths ago.

Beware the rental estimates in these areas- again depending on which suburb, demand, size, condition (is it renovated?) position and supply levels for similar products be sure that you know accurately what you're likely to achieve. Just looking at a cross section (and again without knowing which suburb you're in) anything between $700-1000 is pretty standard for 3x2x2 units in the LNS areas that most tenants would be finding the largest pool of rentals available...3 bedders tend to be rare so if you're able to tart it up a bit and advertise the parking in particular (is it side by side or tandem? As this will make a difference too- side by side superior and more appealing to sharing tenants) you may be able to improve on $720 here.

Anyway best of luck with the negotiating/auction and keep us posted. Love the LNS

 

[cadence]

nothing wrong with 45yo unit, lots of them around, some are probably in better structural condition than newer builds

if the OTP is only 2br, I'd go with the 3br older unit. A cosmetic reno can do wonderful things to a place.

Assume the strata on the old unit is not ridiculous.

If you have $1m budget, consider looking a little further out for a semi or townhouse/villa for more land content.