Money to BURN - $150k

Just sitting at work thinking and researching on property - What to do!!

So thought I would get a bit of insight from the Forum..... I have cash ready to purchase a property and was looking at Inner West Sydney over the last 6-12 months however it seems to have increased a lot (out of control) and I am now having second thoughts about this strategy.....

I already have 2 x IP's and a PPOR in Sydney so there is no issues there, but I want to invest this money wisely....

If I was to have say $100-150k available the options could be:

-Purchase a near $1m house in inner west (Petersham, Dulwich Hill, Marrickville etc) these areas
-Purchase a townhouse/smaller house in SUmmer Hill
-Purchase a cheaper house further out - say Belmore, Lakemba, etc
- Purchase 2 x units in Ashfield, or other areas further our
- Purchase house(s) further out West.... Not really sure which suburbs as haven't really considered but may do some further research
- Purchase interstate - although I am currently exposed to QLD, Melbourne increased too much and other cities seem also unlikely to increse as much as Sydney.

A lot of options I know, but just get worried I have not found anything and now maybe too late or not the optimal decision to purchase in the inner suburbs of Sydney (say 10-15km).

Any feedback that might point me in another direction or re-affirm one of my strategies would be a good starter..... Thanks in advance and hopefully we might get some good ideas?
 
Alexlee,

Doubtful - and this is one of the reasons I am changing track...... However, the $1m purchase now would have cost $800k a year ago (if we take into account the recent survey suggesting Syndey prices have increased 20%)... I would suggest this is maybe over-inflated but it is now out of my league.....

If I had 20% deposit I would likely get a loan on say $800kish property..... I dont really want to puch myself to the mill mark.
 
adventurous I know, but for the next few weeks, an offset against the PPOR ,loan might be a good option till u know where and what to go for if at all.

If u have 150 k cash, Id be looking to restructure my PPOR loan, and the redraw against that 150 k

Your conundrum is quite common in the current environment

ta
rolf
 
If I was to have say $100-150k available the options could be:

-Purchase a near $1m house in inner west (Petersham, Dulwich Hill, Marrickville etc) these areas
Yes, a smallish 3bedder house will set you back $850+K and there will be lots of competition

-Purchase a townhouse/smaller house in SUmmer Hill
Summer Hill 2brm ordinary units will be $520-550K now.

-Purchase a cheaper house further out - say Belmore, Lakemba, etc
Nah

- Purchase 2 x units in Ashfield, or other areas further our
2brm top floor units in Ashfield in smaller blocks of 9 - 12, will be nudging $500K

although I am currently exposed to QLD, Melbourne increased too much and other cities seem also unlikely to increse as much as Sydney.
I agree.

A lot of options I know, but just get worried I have not found anything and now maybe too late or not the optimal decision to purchase in the inner suburbs of Sydney (say 10-15km).
Look we've had 20% growth in the last 12 months. That comes on the back of 6 years of languishing. It is not uncommon to see 40-50% CG in a 12 month period every now and then. We might be in for another 10-20% this year IMO.
Listings are short and demand is high.
We have noticed a huge spike in enquiries since:
1. The last IR rise as investors want to qualify for serviceability on loans before too many more rises
2. The stock market went a bit wobbly over Greece and the falls of the big mining stocks due to K Rudd's super tax on profits.
 
Yes, a smallish 3bedder house will set you back $850+K and there will be lots of competition -

Yes too much competition! This is whats putting me off...... House in lewisham last week sold for $2.8m, although it was a mansion!!
Summer Hill 2brm ordinary units will be $520-550K now. - Unit, not too sure?
Nah -
Whats wrong with these areas? Maybe not best CG but they surely will rise as a result of the ripple effect..... They are also quite cheap and you get a good return.
2brm top floor units in Ashfield in smaller blocks of 9 - 12, will be nudging $500K -

Not too keen on units really.... Would prefer a house.

I agree.

Look we've had 20% growth in the last 12 months. That comes on the back of 6 years of languishing. It is not uncommon to see 40-50% CG in a 12 month period every now and then. We might be in for another 10-20% this year IMO.
Listings are short and demand is high.
We have noticed a huge spike in enquiries since:
1. The last IR rise as investors want to qualify for serviceability on loans before too many more rises
2. The stock market went a bit wobbly over Greece and the falls of the big mining stocks due to K Rudd's super tax on profits.

So, can I look further out say Canterbury, Campsie, Clemton Park, Hurlstone Park the like? I am familair with these areas and although they have rised not as much as Petersham and Dulwich Hill etc competition for houses is not as harsh...... There are probably less emotional buyers here as they are either not as nice/bad reputation (Belmore/Lakemba/Campsie), no train station (Clemton Park) or further west with not much shops/infrastructure (ie Canterbury, Hurlstone Park).

Just putting my feedback out there. Thanks again for feedback Propertunity and anyone else that would like to comment.

Thanks:D
 
I am going to look at Brisbane for my next purchase. I have had good capital growth with my two places in sydney (epping) first one purchased 2001 , second one 2008 . Just purchased PPOR Newcastle this year - just moved in!Looking further north as think Brissy might be starting to move. :)
 
hmmm, Epping eh? There's a thought maybe just forget about the inner west because it's had its day - for now....

Hi Ritchie

Don't be misled into thinking it's only been the Inner West that's been in boom mode. Pretty much all of Sydney has been rising rapidly in the last 6 mths and affordability is once again becoming a crisis for many in those more "desirable" suburbs. Epping is certainly a good pick (as is the Epping-Ryde corridor) but be aware that activity is high and listings still low. I should know, as I buy for clients regularly in these areas. To secure a half-decent house (and I'm leaving main roads like Carlingford, Pennant Hills, Victoria Rds etc out of the mix here) you need minimum $800K (and that still gets you very ordinary or small) and perhaps some renovating skills :D It's that popular, especially since the Epping-Chatswood rail link arrived. Even an ordinary unit will now set you back $500K+

Sydney's a huge place and you really should conduct further research to see if there aren't other areas for your budget. Out west, you'd get two houses for your money and don't make the mistake of assuming that, just because such suburbs are further away from the cbd, they attain less cg over time. I won't go into stats now but do a bit of searching and you'll soon see it's a myth that only inner city property outperforms. Simply pick up a Residex report to read the figures for yourself, both historically and in recent growth quarters.

Also there's the north side of Sydney to consider, as well as the east... a plethora of choice really!
Good luck with it all and happy researching :)
 
haha, thank you for all that - more to consider!!

I am a big fan of the inner west and live around this area so know it well.... Would like to get a nice house in the area incase they keep getting moer unaffordable! (ie I could afford $800k now but could I afford $2m in 10 yrs if they keep doubling/20% rises???)

I have been researching inner south, ie Banksia, Bardwell Park, Arncliffe, nr airport... Good deals round here but are people put off so much by airport they are unwilling to spend??

Thanks again
 
Places like Tempe, Sydenham, Banksia, Arncliffe a bit closer so maybe they a bit more effected..... A bit like the 'ripple effect' but in reverse??:cool:
 
I have been researching inner south, ie Banksia, Bardwell Park, Arncliffe, nr airport... Good deals round here but are people put off so much by airport they are unwilling to spend??

You'd be surprised but there's actually little aircraft noise in the suburbs you've mentioned despite the proximity to the airport. The flight path is more towards Sydenham, Tempe, Marrickville and suburbs heading north north west from here.
 
ok, so Garbage I may take a closer look at these burbs',,,,, I suppose what I was getting at is will these areas rent out easily? Ie with the airport and the schools around say Arncliffe, Bardwell Park, Tempe etc maybe not as good and as many as the more traditional inner west...... Also other fundamentals like the busy freeway, shopping centres, and one I was always wondering is there much of a community spirit round there? Any feedback would be greatly appreciated on this one, thanks guys.....
 
Talking to an agent in Marrickville yesterday, he was saying enquiries have dropped off markedly in the last couple of weeks.
 
Auctions - slow yesterday!

Attended a couple of auctions yesterday and failed to sell..... Ashfield area with one in Ashfield expected to reach $1m + being passed in at $920k....

Is the market softening then? Thoughts......
 
Attended a couple of auctions yesterday and failed to sell..... Ashfield area with one in Ashfield expected to reach $1m + being passed in at $920k....

Seems the vendor forgot that their house was on an odd shaped block with main road frontage and a train line next to the main road.
 
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