Macquarie Park Old Vs. New

I am a FHB looking to buy around the Macquarie Park/North Ryde area. I am looking for a place initially to stay and maybe to rent out later. I have the following two options to go for. I'd like to hear from other people which option you would go for...

Option 1: Buying off the plan
- Convenient location - 5 minute walk from the train station
- But opposite of the cemetery :(
- High rise apartment - 3 towers (with 200+ units)
- Expecting a high strata fee
- Agent said to get in early to get cheaper price.
- I'll get the FHOG
- Price is higher than the old units
- Completed in 3 years time and might get a lower valuation later

Option 2: Buy an old unit
- Convenient location
- Low strata fee
- Much cheaper than buying OTP
- Future rent prospect might not be too good due to the abundant new high rise apartments that will become available in the area.
- No FHOG

My question is with the many high rise buildings going up in the Macquarie Park/North Ryde area, is it better if I go for the OTP option?

I am worried if I go for the older units, I might not be able to get a good rental income due to the competitions from the new apartments.

Also, would you buy an apartment complex built next to a cemetery?
 
You have considered most of the valid points however if you are buying OTP, then you still have to find somewhere to live until the building is handed over, so factor in 3 years of rent. Strata levies are anyone's guess - (first years indicative are usually low because many things are under warranty eg lift maintenance and will increase substantially in subsequent years).

If you pick up an existing unit, move straight in, known issues/levies. Competition will be between similar properties not old vs new - why? Old units have a smaller floor plan, no lift, pool, gym etc, no ensuite so they aren't overly comparable.

Why would there be issues buying near a cemetery? Delhi Rd is next to the cemetery but anything else is quite a distance. If this is an issue for you, look elsewhere.
 
You have considered most of the valid points however if you are buying OTP, then you still have to find somewhere to live until the building is handed over, so factor in 3 years of rent. Strata levies are anyone's guess - (first years indicative are usually low because many things are under warranty eg lift maintenance and will increase substantially in subsequent years).

If you pick up an existing unit, move straight in, known issues/levies. Competition will be between similar properties not old vs new - why? Old units have a smaller floor plan, no lift, pool, gym etc, no ensuite so they aren't overly comparable.

Why would there be issues buying near a cemetery? Delhi Rd is next to the cemetery but anything else is quite a distance. If this is an issue for you, look elsewhere.

Hi Scott No Mates, thank you for sharing your thoughts. You definitely have raised some points that I haven't considered before.

I personally don't mind living opposite off the cemetery. I was just thinking that it might be a problem when I want to sell the property in the future.
 
I have an older unit in West Ryde. I am very comfortable with the purchase of an older unit.

200+ units in a block or complex means that if many people are looking for tenants or trying to sell their similar units at the same time then first thing that will be negotiated in a desperate sale is price. So you could be looking flat or no growth in price in the first 5-8 years. And note that being opposite a cemetery will turn off a lot of buyers so you will have many sellers and not so many buyers. Guess what would happen to the sell price in that scenario? I know Rhodes has heaps of new apartments. But their vacancy rate has been up around the 7% mark for a long time. For fast renting, you want the vacancy rate to be around the 1.5% mark. You either have to leave it vacant, decrease the rent or find some other imaginative way to make income from your apartment.

Older unit = renovation potential, therefore you can value add & instantly have built equity. No renovation potential in a new unit. Plus they are much of a muchness on the inside so it's hard to differentiate yours from the others when it's time to sell.
Strata and levies are more or less known in an older unit. But newer ones they could artificially have low rates for the first 3 years then increase them 100-300%. So it's a big risk.
(By the way. Avoid lifts if possible. We had a lift that needed replacing and the cost was $120k!)

With the huge new complexes, older units become "scarce"... But they are building new units all the time. Yours won't be the newest for too long.

People looking to rent new vs old in an area are generally 2 different crowds, there are two different price brackets after all. The tenants for an older property will be different to tenants for a new property. Generally you will still get tenants as long as your place is presentable and in working order. And besides, if the rent is a bit lower, people can afford to happily live there for a long time without rent stress. I actually think to buy in a older block in an area with newer units is a good strategy. People with the intention to buy will be drawn to looking in the area with the newer units, see that the price is 100k or so more than an older unit just nearby they think to themselves damn, what about this price difference? Some will decide with that price difference it's worth buying the older one instead, therefore the older ones increase in value due to the extra demand from the people buying them instead of the newer units, while the newer ones languish unsold. Also when it's time of first sale from you that's maybe not easy as they are no longer new, (like a second hand car, some people might not want to pay a premium when the product is not new anymore) but the sellers are still expecting a higher price compared to older units in surrounding blocks. Which might also have lower levies.

I wouldn't buy near the cemetery. If your heart was set on new maybe buy in the new complex replacing the Stamford at cnr Herring and Epping Roads instead? Close to shops, uni, trains and buses so should be very popular, even though it will be a huge development and with heaps of units.

Anyway, just my take on things....
 
Last edited:
Top