Most Affordable (good) Sydney Suburbs to Buy PPOR (Unit)?

[azzae89]

I ask this question for a few reasons:

1. Sydney is shockingly unaffordable
2. The "reports" and research put out online on "Sydney's cheapest suburbs" are all about really crappy areas
3. There seems less info covered on units than houses
4. I've always lived in Sydney, worked in the CBD and love it, so anywhere else is not an option.

Think of it this way. If you HAD to buy a unit in Sydney to live in for the next 5 - 10 years, under 420K (this is what I'm pre-approved for), where would it be?

I'm talking greater metro as well, maybe even as far south as Heathcote in the Sutherland Shire.

Cheers!

 

[DaveM]

Lane Cove if you can deal with a 1br.
http://www.realestate.com.au/property-apartment-nsw-lane+cove-114145123

 

[james55]

kogarah?

http://www.realestate.com.au/property-flat-nsw-kogarah-114306783

 

[MsAli]

Parramatta, Westmead, Wentworthville, Pendle Hill, Girraween, Toongabbie (in that order)

 

[alexlee]

Think of it this way. If you HAD to buy a unit in Sydney to live in for the next 5 - 10 years, under 420K (this is what I'm pre-approved for), where would it be?

Why would I HAVE to buy? If I can't afford to buy where I want to live, and knowing that units close to the CBD likely have crap yields - i.e. are cheap to rent, then I would rent and invest elsewhere. When I am buying solely for investment, the options open up because it wouldn't matter where I've always lived, where I worked or whether I love it or not. Crappy areas, I've found, go up too, often performing better than 'nice' areas. I wouldn't have to consider 5-10 years either, because I could hold it forever, or not, regardless of where I live personally.

 

[china]

Right now it is the "crappy" areas that show the best potential for future gains in Sydney.

http://www.jenman.com.au/news_subscriber_item.php?id=39&Section=Reports#sydney

 

[ChrisA1]

Sorry China, can't see the report

Are you able to cut and paste into the message?

 

[china]

From Neil Jenman, note last line.

Sydney and New South Wales:
What would we avoid this year and why?

Byron Bay heads our list of “no go zones” in New South Wales. It is to NSW what Noosa is to Queensland – a highly-rated holiday destination and a highly over-rated property market.

Few places in Australia have performed as badly as Byron Bay. Its average annual growth rate in house prices over the past decade has been about 2.5%, not even keeping up inflation. Over the past five years, the median house price has fallen an average of 2% a year. In the past 12 months, it’s dropped 10%.

Byron’s unit market has been worse. The 10-year growth average has been a dismal 1.2%, with the median price dropping 8% in the past 12 months.

If one place has challenged Byron Bay as a poor performer, it’s Griffith, 570km west of Sydney. Its 10-year growth rate is almost as low, at 2.7%. But no growth has happened recently. The median price has dropped an average of 2% per year for the past five years.

Sydney’s prospects are rising this year, with an upturn long overdue. Sydney has been the great under-achiever among the capital cities, with growth rates well below the other state and territory capitals – particularly at the top end.

We would suggest people avoid those millionaire suburbs of Sydney, assuming anyone can avoid those prices, as they are very volatile markets. They do have periods when prices rise rapidly, but they tend to be brief – and often followed by equivalent decline.

To illustrate, here are the long-term capital growth rates for some of those suburbs: Bellevue Hill 4.3%, Bondi Beach 4.1%, Castlecrag 4.0%, Clontarf 1.5%, Collaroy 3.8%, Darling Point 2.0%, Dover Heights 3.4 %, Killara 2.2%, Mosman 1.8%, Palm Beach 2.4% …. I could go on, but you get the picture.

Better times may be ahead in upmarket Sydney, but long-term these places do not deliver great capital growth.

You’d be better off buying five houses in Blacktown, Cabramatta or Canley Heights than one in Mosman.

 

[Rixter]

Parramatta, Westmead, Wentworthville,(snip)....

I second that!

 

[JT7]

I second that!

If I remember correctly Rixter, you snapped up a townhouse in Wentworthville a couple of years back.....?

How's that one been going for you mate?

Jack

 

[Rixter]

If I remember correctly Rixter, you snapped up a townhouse in Wentworthville a couple of years back.....?

How's that one been going for you mate?

Jack

Going very nicely thanks Jack.

Its a 2 bedroom Villa... Settled Dec 2010.

Approx $70000 increase in value plus rental increase of $90 per week.

Same tenant - been there for 11 years.

 

[Rickardo]

Going very nicely thanks Jack.

Its a 2 bedroom Villa... Settled Dec 2010.

Approx $70000 increase in value plus rental increase of $90 per week.

Same tenant - been there for 11 years.

Rixter, are you looking to purchase anywhere in the next 6 months? If so where?

 

[JT7]

Going very nicely thanks Jack.

Its a 2 bedroom Villa... Settled Dec 2010.

Approx $70000 increase in value plus rental increase of $90 per week.

Same tenant - been there for 11 years.

That is sensational Rixter! Got to be happy with that.....

 

[Rixter]

Rixter, are you looking to purchase anywhere in the next 6 months? If so where?

No plans to..we've now completed the acquisition phase of our CGA Investment Strategy.

 

[Rixter]

That is sensational Rixter! Got to be happy with that.....

Very happy with it..

20% increase of Capital Growth plus 29% increase in Rental Yield.

Purchased in 2010 at 2004 prices.

 

[see_change]

That article by Jenman is a good example of why I ignore experts .

Saying a poor last ten year growth rate is a reason to avoid an area misses the point . Overall most markets go up in the long term at a similar rate . If an area has underperformed in the last ten years , IMHO ( and past experience ) it's more likely to over perform in the next ten.

I wouldn't invest in Griffith or Byron Bay for other reasons , but in Sydney, Mosman is some where we have bought in and would be happy to buy again. Not all properties in Mosman are multi million dollar houses though if you were in the market for one of those , now would be a good time to buy there given the drop in the market since the GFC and the ongoing weakness in the over 2 mill segment.

The outer west seems to be as strong as any market in Sydney at the moment so for that reason I'd be buying closer or else where . I live on the north side so this would be an example of what you could get here . Hornsby is a major suburban centre . The only thing it doesn't have is a Netspresso shop. We have to go to Chatswood for that .

We live 2 - 3 k's away

http://www.realestate.com.au/property-unit-nsw-hornsby-114223591

Cliff

 

[virgo]

Where?

Hiya

I would go further west to Penrith; still so affordable stick to as close to Penrith CBD and train station as possible

Go and have coffee at Penrith Westfield; demographics very different from Mt Druitt Westfield...quite wealthy people coming in from neighbouring acreage and the Blue Mountains...

http://www.realestate.com.au/buy/pr...cludeSurrounding=false&source=location-search


Express train only 6 stations from Penrith to Central; under an hour in the morning

 

[ndpjai]

Hi there

Closer to sydney olympic park within 5 km radius including surrounding suburbs in the long term between 5-7 yrs would be perfect for units within your budget of $420K.

Good luck.

 

[lamecrocs]

@ndpjai, why it has to be close to SOP ? is this because NSW gonna win the state of origin tonight ? Hence, more limelights on the stadium.

 

[robbiejuve]

Some people are happy to commute 50 mins each way and some are happy to live in a shoe box close to town. Given those 2 options I would pick the shoe box as being close to town is important to my lifestyle though I am not keen on shoe boxes.

If I had my time again when I was at this part of my life, I would rent where I wanted to live (which I did) and buy an investment property (which I didn't do and regret thoroughly). Hindsight is 20/20 though.