Manly Vale/Balgowlah/North Manly - Good Investment?

[C-mac]

I'm thinking of making my next IP purchase in these areas. Manly itself is a very expensive entry-point and by crunching some numbers on some of the advertised properties; they'd have to be quite negatively geared.

Then I looked at a 2km radius around Manly. So, areas like Manly Vale, North Manly, Balgowlah. Unit prices in this area appear to be much more affordable; and commandable rent (particularly for 2-bdr units) is still quite high.

I'm mindful that these areas aren't as desirable as Manly-proper, but they are so close to the beaches and well connected buses-wise that rental demand for them appears to be quite good. I know that there is some light-industrial and some housing commission areas still, no?

Do any of you have IP's in these areas or could perhaps share an IP experience they've had in this area? Also, any insight into new developments/council projects in this area would be great! Anyone out there live in these areas and have a view on the quality of life there? Realestate.com.au user rankings place these suburbs quite high, with some very positive comments (but I'm skeptical how many of these aren't just local estate agents posing as regular residents!!)

 

[ozmale42]

I thought about this area . However my criteria is that a property must be on train line . I think for similar money, or less, the inner west areas from Stanmore to Strathfield would be my preference

 

[C-mac]

I agree with you - that's the biggest drawback really, the lack of rail. I actually currently live in burwood, which is 13 minutes fast train to central station.
Thing is, it's so hard to get into that market. And ashfield, summer hill, petersham trains are all-stops train services (no fast trains) making the commute take just as long as getting a fast train from parramatta or strathfield.

Summer hill is great, I actually looked at few units around there but some of the buildings are poor quality; the units feel like prison cells as opposed to homes!

City buses from manly vale are about 30 minutes. Is that too far a commute for tenants?

 

[Big Tone]

what about Collaroy (or narrabeen). Always demand from tenants.

 

[akiwinut]

Manly Vale would probably be the most affordable of the 3, but it depends on the type of property you are after...
Manly Vale and Balgowlah (not sure about North Manly) are well served by buses to the city along Pittwater Road which has a bus only lane now pretty much all the way to the harbour bridge. Ita about 45min from Brookvale so I guess about 35min from Balgowlah...

 

[C-mac]

I've actually now just moved into Dee Why and I work in Milsons Point so I'm experiencing the buses first hand.
I agree, it's not to severe-a-commute from even Dee Why down to North Sydney (I guess Wynyard is just another 5 minutes over the bridge then first stop).

I've recently been advised that Northern Beaches in general is not good for investment but instead better for family owner-occupiers.

What is everyone's thoughts on this?
My property buyer (he's a real estate lawyer with 20+ years professional buying experience for his clients and also has approximately the same number in IP's himself) says the above about Northern Beaches. His tip is for 'middle inner west fringe' (so, say between enmore and say Ashfield, and surrounds) or North west train line (so, Denistone East/West, Ryde, West Ryde, etc) corridor.

Thoughts?

 

[Cdro]

At the end of last year, we were trying to decide where to buy, and also shortlisted Manly Vale as good value with good potential.

However, similar to many of the suggestions in this thread, we ended up going with the inner west and I believe that the market there will continue to see growth. I noticed that one SMH article last week cited Lilyfield as the highest auction clearance rate over the weekend of 89%, so looks like things are strong. One thing to consider with inner west is that the light rail is due to go through there. This website gives a map of the proposed light rail extension which might give you some ideas if you do end up thinking about that area:

http://lightrailextension.metrotransport.com.au/proposed-routes/light-rail-to-dulwich-hill/

Good luck with your decision!

 

[tess85]

Thing is, it's so hard to get into that market. And ashfield, summer hill, petersham trains are all-stops train services (no fast trains) making the commute take just as long as getting a fast train from parramatta or strathfield.

Ashfield has does have express trains (Strathfield-Ashfield-Redfern-Central etc) and there are semi-expresses as well, on the Croydon, Ashfield, Summer Hill, Petersham etc stations.

I personally love living in the inner-west for proximity to the city. I did consider Manly + surrounds but chose to stick to the inner-west.