Moving to Sydney

Hi all :

I am a long term user/reader/poster in this forum.

Currently I am living in outer east of Melbourne and I am living here since last 5 years .

Due to recent change in my circumstances( due to my wife's job ), I am looking to move to Sydney. My current mortgage stands at 1500 per month with a pending mortgage of 220K.

I am on a salary of 100K base and my wife will be on 70K base. We don't have any kid yet ( but planning to in next one year ). Once my wife moves to Sydney, I will be looking to do the same in 2/3 months and rent out my current property.

Once we move to Sydney, we will be looking to buy a 3 bedder house in and around Sydney ( might not be immediately, but say in few months ). Wondering what suburbs in Sydney can I really consider for the purpose? I am looking to use public transport to travel and also being close to shops etc. However being used to leafy and green suburbs in Melbourne, I would prefer the same in Sydney :).

Any help will be much appreciated.

Cheers!
DU
 
Whats your budget? Whats your property style (i.e. big block, terrace, etc)? Where is work located? How long are you willing to travel to get to work?

Regards

Shahin
 
Hi DU,
Just give advice from diff point. Set your current mortgage to IO, contact your local REA to get indication the market price. This to make your options wide in the future wether you want to rent or sold.

If you want to keep it, learn how to recycle your debt-keep high deductability. Just don't use new debt for PPOR or non deduct doodads, you should be all right.

Get full valuation while u sort out your budget/ finance with one of the broker here. Rent for the first 6 months near where your wife work, along weekdays read sommersoft and in the weekend visit/research as many suburb as you want. Arrange inspection, watch auction to get the feeling in the market. Eg. Learn why they prefer auction in Inner west suburb than South west and the price bracket.

Regards,
 
Hi there :

Thanks for your replies. My wife's work will be located around Mascot ( might need to travel around NSW if and when needed ). I am not sure about my work as of now as I am yet to find one. But most likely it will be around the CBD or around North Ryde( assuming most of the IT companies are based in these locations ). Also to mention here, we don't mind around 30-40 mins of commute each way to the office using train/bus, preferably train.

Coming to the budget, I am bit confused. Considering my current financial situation, is a budget of 700K pragmatic ???? I have no other debt apart from my current mortgage.

I will definitely prefer a descent sized land ( not a big block though ) for my next property at Sydney and if I buy it, I am considering to live there for a period of time.

ZachAnSel, would you please mind to elaborate further on this :

If you want to keep it, learn how to recycle your debt-keep high deductability. Just don't use new debt for PPOR or non deduct doodads, you should be all right.

As far as my current property is concerned I will definitely like to keep it considering the location, proximity to public transport and shops etc.

Looking forwards towards your replies.

Cheers!
DU
 
If you are planning to convert your current PPOR property to an IP then you need to ensure that it is IO and you are paying as less as possible so the deductible is as high as possible when you convert it to an IP. Also don't contaminate the deductible portion and the non deductible portion of your loans.

Tons of IT jobs in the North Ryde district and of course the CBD. It may be worthwhile picking the brains of some of the BA's on the forum. I live on the North Shore and find it very handy to various parts of Sydney.

Regards

Shahin
 
My wife's work will be located around Mascot ( might need to travel around NSW if and when needed ). I am not sure about my work as of now as I am yet to find one. But most likely it will be around the CBD or around North Ryde

Sydenham comes to my mind but I'm don't know much about this area.
 
If you are planning to convert your current PPOR property to an IP then you need to ensure that it is IO and you are paying as less as possible so the deductible is as high as possible when you convert it to an IP. Also don't contaminate the deductible portion and the non deductible portion of your loans.

Tons of IT jobs in the North Ryde district and of course the CBD. It may be worthwhile picking the brains of some of the BA's on the forum. I live on the North Shore and find it very handy to various parts of Sydney.

Regards

Shahin

The OP would like house on a block. This is almost impossible to find for 700k on the north shore. For this budget, best look in western sydney.
 
Hi DU,

As Shahin explain, what you need to do is change your mortgage to IO.
Assuming you will have equity, when you draw down and put that money as DP for PPOR, you will have large loan but ATO will permit deduction.

So what I did is draw down equity then re-invest in manage funds. I don't particular recommend manage funds over other investment vehicle. You need to reflect base on your risk and knowledge. That's help me grow my money while I was renting, and I can deduct my loan.

Regards,
 
Hi all :

Thanks for the replies. Yes I got about the IO/Equity bit.

So looks like east/north is out of my reach.

Hornsby is a suggested one. Any other suburb please?

China mentioned to look in the west. What are those suburbs in west which are green, clean, leafy and good for families?

Cheers!
 
Unless you are looking to develop I have no idea why you would take $700k to the west. I guess its also a case of what you define as the 'west'.

A client of mine lives in Paddington and he once said he gets nose bleeds if he travelled all the way up north to St Leonards (my office at the time). Sydney is a big place and definitions of west, north, east is often crossed.

Regards

Shahin
 
Hornsby is a looooong way from Mascot. The commute wouldn't be great from up there. Perhaps consider south-west? Somewhere like Lugarno or Picnic Point? While the M5 is a shocker most times of the week the trains are pretty good and are in the next suburb to both of these. Or if you want to go south or near the beaches perhaps around Sutherland, although the properties at your price range would be the base of the market.
 
You might find something in Earlwood for around 700,000 it is very leafy, family friendly and only 12km to the city. Much better than living out west I think !
 
Hornsby is a looooong way from Mascot. The commute wouldn't be great from up there. Perhaps consider south-west? Somewhere like Lugarno or Picnic Point? While the M5 is a shocker most times of the week the trains are pretty good and are in the next suburb to both of these. Or if you want to go south or near the beaches perhaps around Sutherland, although the properties at your price range would be the base of the market.

Definitely too far. Tho I know of people who travel a lot further to work everyday.

I personally wouldnt look at at northern suburbs or hills district. Im from there. Its great IMO just too far to comute.
 
You might find something in Earlwood for around 700,000 it is very leafy, family friendly and only 12km to the city. Much better than living out west I think !

I actually think Earlwood would be a safe bet. Its not too far from Mascot, though Sydney traffic is pretty bad, so the closer you can get the better.

http://www.domain.com.au/Property/For-Sale/House/NSW/Clemton-Park/?adid=2010301990
(Next suburb to Earlwood). From here you can drive to Bexley North station - train ride to mascot and city.

Maybe something around Little Bay.
http://www.domain.com.au/Property/For-Sale/House/NSW/Little-Bay/?adid=2010307352

Have no idea what the neighbourhood is like cos i don't live around there. The commute to Mascot would be ok, North Ryde would be just terrible, but CBD is ok.
 
You'll be hard pressed finding a house with land for $700k in Earlwood. The unrenovated double fronted Federations/art decos on quiet streets go for $1m+. I'd suggest one of the more affordable surrounding suburbs like Bexley, Kingsgrove, Beverley Hills. These have the added bonus of being near the airport train line (which is the same line Mascot is on). That will still be ~30 minutes to the CBD by direct train, but a 45 minute drive to North Ryde.
 
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