Pyrmont Sydney

Hi all, just wanted some opinions.

I'm considering buying my first home in Pyrmont, Sydney. The property I'm looking at is a large 1 bedroom with asking price 550k+. With the same price I can get a 2 bedroom in other less prestigious inner city suburbs. 550k for a 1 bedder is really quite pricey, but it is in a great location. I'm just not sure what potential it has for capital gains.

Any opinions would be great.
 
Pyrmont you may need a 20% deposit to be approved for finance - especially for a 1 bedroom. There is definitely a lot happening there and it is close to town. Still a lot (and more are being added) housing commission / low cost accommodation however it all adds to the character I guess. Couldn't comment on the capital growth however due to the amount of units in Pyrmont, it would need to have something special - particularly water views.
 
Hiya

25 years ago there wasnt much in pyrmont xept old terraces and industry.

Shes certainly changed a lot and will continue to become more and more HD "residential" as time progresses.

For that sort of money, an oler style place in the eastern burbs may realise more "consistent: cap gain because the potential for new dwellings is less.

ta
rolf
 
I'm considering buying my first home in Pyrmont, Sydney. The property I'm looking at is a large 1 bedroom with asking price 550k+.

I also would caution you about spending over $0.5M on a 1 bedder. CG may be a bit restricted for a number of years.

For my money, I'd be looking Eastern suburbs in an older block in at least a 2 bedder with potential to add-value via a cosmetic reno.

For $515K you can get something completely reno'd like this:
http://www.realestate.com.au/cgi-bi...t=&header=&cc=&c=57111478&s=nsw&tm=1247222335

(not a recommendation btw - just for some ideas)

All the best with it.
 
Propertunity that is a great renovated apartment. You always have very good ideas and a developer friend in Sydney told me exactly what you just mentioned. Get a 2 bedder in Eastern Suburbs if you have $450,000+

Sadly I don't have the 0.5Mil. More like $350,000. Back to Muswellbrook to check out what's happening there.

Cheers

Pip (Andy's wife)
 
hey misschili

I was actually walking around Pyrmont today looking for a place to rent when I move up here. 2 beddies seem to be all the hype - both places i went to were in the mirage apartments block on Pyrmont street. Had around 20 ppl turn up for each inspection!! $580/week and $620/week. Not sure how much it would cost to buy one of these, but I wouldn't think your yield would be the greatest here on a 1 bedroom place.
 
hey misschili

Firstly i must say i love the whole pyrmont area and will be looking to buy another IP near there soon.Without knowing a few more details its hard to say if 550k is to much but it certainly sounds to me a tad expensive it would have to offer alot.

As for CG using myself as a example i brought a IP in darlinghurst a stone throw away from pyrmont Aug o8 low-mid 4s valued 2 weeks ago by a bank some 40 grand higher than BP(1 bedder moderate size)so there is still good potential for CG in the area.

Personally i would be going for something along the lines though like Propertunity mentioned there are some decent places to snap up in edgecliff surry Hills Paddington areas that just need a little work and prob will gain you greater CG that's just me though. Happy hunting!
 
Thanks everyone for your replies. Below is the place I was looking at:

http://www.realestate.com.au/cgi-bi...t=&header=&cc=&c=31994506&s=nsw&tm=1247310800

It is in the nicer end of pyrmont near the water, and thus the high price. We went to look at the property today and I loved the area, but decided that it was probably too small for what we were after. We will probably buy a 2 bedder in the Green Square area. On further thinking I do agree that a 2 bedder has much more potential for CG.

Propertunity, I have seen the reno'ed property, but thought that it would be way too noisy to live in, being on the main road.

Thanks for all your advice for this noob to the property market.
 
Propertunity, I have seen the reno'ed property, but thought that it would be way too noisy to live in, being on the main road.
That's why I said it was not a recommendation (I would never buy on a main road) - I just provided it to show what a reno'd property could look like.
 
Funny I was just looking at Green Park too online....the only thing that worries me about such developments is how do you know these places with multiple units in one complex and multiple complexes will not end up looking like slums ( a bit harsh a word but you know what I mean) in 5 years time?

I digress but went to Auburn on Monday in my lunch hour (never been there before)to check out a 3 bedder for $340,000. I bumped in to a professional valuer who told me the rents there are going down. He was right.....I was told the I.P. would fetch $450 p.w.+. Checked on a rental site and the same block has advertised $390 only for 3 bedders in this block. So hard to keep it all together.

Propertunity going to do a 3 night I.P trip with hubby in your "territory" August bank holiday weekend. Staying at Cessnock Friday night (friends live there) then looking around Branxton Saturday then heading up to Muswellbrook Sunday and Monday.

Too hard to get a feel for an area unless you see it in the flesh. Got to learn the good and the bad parts of town.

Hey Propertunity we already have an I.P. in Lake Munmorah.........It is such a nice area but the prices have been stagnant for over 6 years for re-sale. Cannot understand why they have not budged!! Anyway enough complaining...at least it is constantly leased and rent has increased lots.

Cheers

Pip
 
I digress but went to Auburn on Monday in my lunch hour (never been there before)to check out a 3 bedder for $340,000. I bumped in to a professional valuer who told me the rents there are going down. He was right.....I was told the I.P. would fetch $450 p.w.+. Checked on a rental site and the same block has advertised $390 only for 3 bedders in this block. So hard to keep it all together.
Hey Pip, an IP worth $340K that rents for $390 pw is nearly a 6% return!! - pretty damn good for a single resi house. (normally only 5%).

Propertunity going to do a 3 night I.P trip with hubby in your "territory" August bank holiday weekend. Staying at Cessnock Friday night (friends live there) then looking around Branxton Saturday then heading up to Muswellbrook Sunday and Monday.
I don't get Bank holidays :D but enjoy your trip and don't sign anything if you've been visiting the wineries - wait until the next day :)

Hey Propertunity we already have an I.P. in Lake Munmorah.........It is such a nice area but the prices have been stagnant for over 6 years for re-sale. Cannot understand why they have not budged!!
Pip, EVERYWHERE (pretty much) within 1 hour's drive of Sydney, including Sydney itself has been "stagnant for over 6 years". But during that time rents have increased a lot). You need to understand the RE cycle better. They go up fast, stay flat (plateau) and then go up fast again. In a typical 7 - 12 year cycle, most of the big growth happens in just a few short years at the end.

That is why you get the buyer who "never made any money out of RE :(" even though they held it for 5 - 6 years and then sold.....and then you get the "genius" buyer who doubled his money in just 18 months - 2 years. :)
 
Propertunity I pretty much guess we are not in the "genius category"......will just have to wait a few more years for Lake Munmorah.

Although the house we live in here in Berowra has doubled value in 9 years but we are so happy here so not in selling mode.

Such is the ups and downs of this game hey?

Cheers and thanks for imparting all your experience.

Pip
 
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