Ready to buy in Parramatta

Hi everyone,

I know there's been many threads on the Western Suburbs and I have trawled through most of it. My questions are quite specific so I haven't found exactly what I'm after.

We're ready to buy our 2nd IP now - a 2br unit around the $300-350K mark.
First one was in our own backyard (melb) so we're a very green and buying interstate is a bit scary.

I've narrowed it down to the areas around Parramatta, mostly because it's toted as the 2nd cbd and it is seems a good investment (maybe not as high a yield as some but we need a good long term with no work needed :D).

As we live in Melb, hubby will be flying up there for a weekend to view 5-6 units. I am looking for validation that I have the correct ideas and haven't gotten it completely wrong, not knowing the local market can be a trap and I don't want to fall into any :p

The unit will be lowrise, low fees etc. near train but not too close to Parramatta road.

  • 1st choice is Parramatta (near station and westfield) - hard to find lowrise and meet our budget here.
  • 2nd choice is Westmead (near hospital) - seem to be a few but also many rentals.
  • Is a unit near the park considered a sought after location or the opposite?
  • For other choices not sure whether to stay on the train line (Harris park, wentworthville & further west) or to venture to Parra north? Train line appeals to me but syd may be very diff to melb. Do most people commute to city from here?
  • I get the impression that Merrylands may not be a great area as the prices are all under 300K.
  • Does anyone know where all the council housing is or how I find out?
Anyone been through this process themselves and then purchased and have advice/stories to tell? Anyone recommend a reasonably priced conveyancer? The process seems to be very different to VIC.

We have looked at using a buyers agent but have decided to do it ourselves this time.

Thanks
Jus
 
....so we're a very green and buying interstate is a bit scary.
Mmmmm, perhaps a buyers agent would be a good idea? :p

......not knowing the local market can be a trap and I don't want to fall into any :p
A good buyers agent would stop you falling into traps ;)

Is a unit near the park considered a sought after location
Yes

For other choices not sure whether to stay on the train line (Harris park, wentworthville & further west) or to venture to Parra north?
Stay on the train line.......well up to 400-800 metres off it anyway :)

Train line appeals to me but syd may be very diff to melb. Do most people commute to city from here?
Define 'most'? Some do. Some work in Parramatta. Some work in Penrith.....etc

I get the impression that Merrylands may not be a great area as the prices are all under 300K.
....and you are basing that impression on the price alone? :confused: That is just one factor.

Does anyone know where all the council housing is or how I find out?
Yes, anyone (including a good BA) with access to RP Data or PDS etc will be able to advise you on where the housing com. is.

We have looked at using a buyers agent but have decided to do it ourselves this time.
Good luck with that, but I suspect that after you factor in the costs of travel, meals & accom etc., multiplied by the few trips you'd need to do to get familiar with the area, that the fees you may pay to a BA would be worth it because they'll probably get you a better property at a better price anyway.

Apologies in advance, my response was a bit tongue-in-cheek (although I do stand by what I say) but there are a couple of BAs on the SS forum here that work in that area especially Jacque Parker at http://www.housesearchaustralia.com.au/
 
If someone cant buy an interstate property by themself, they shouldn't be investing IMO. Its not difficult at all, why would you need a BA?

As a guru once said. "When i buy a property interstate, i know more about the area than the locals"
 
For Westmead, there is definitely a desire for units that back onto the park. Lots of units around there now, so the park breaks that up a bit.

Do some googling on Harris Park. not one of the best places to live, can be a bit rough around the station.

Close to Parra station would be good if there is sufficient parking, but the closer you get to the station, the more likely the street will be metered parking. That turns some people off if their friends/family have to pay to visit them.

There are plans for Merrylands to have 20 storey apartment towers in the main street.

North Parramatta is a highly sought-after area as it is close to Parra itself but far enough away to not have too much riff-raff - the closer to the stations in those areas, the worse demographic. It's too far to walk to the station though.

6 units across that area doesn't seem like much. Perhaps he should try to visit a lot more in each suburb. Within a few opens he'll see the differences between each suburb and if there is one that suits.
 
In North Parra, If you can get near the loop bus route, that's almost as good getting near the station and without the noise too :)

Also watch the Housing NSW dev't on corner Albert & O'Connell Sts.
 
Jus

The Sydney market at this price range is still hot.
I sometimes see some very nice units but I don't have a chance in securing them because I offer less than the asking price and I have to compete with first home buyers who will pay more, (they will even pay full price....:eek: )

Have you decided what sort of yield are you after?
 
Jus

The Sydney market at this price range is still hot.
I sometimes see some very nice units but I don't have a chance in securing them because I offer less than the asking price and I have to compete with first home buyers who will pay more, (they will even pay full price....:eek: )

Have you decided what sort of yield are you after?

Thanks so much everyone, all good advice and quite a few things to consider.
We're buying in NSW to diversify and also to avoid the land tax penalties for having too many in Vic.

BV, we're looking at over 5% hopefully. Price range $330-350 (it's gone up a bit after seeing what's available) with rents $360-400. Seems to be a few in the range.

Murph, I'll check out the loop bus route, being from melb we tend to forget that other cities have ok buses :p

Beachgurl, I've ruled out Harris Park, mostly as the train stop isn't an express one, but thanks for confirming that with the demographic. Good to know about the metered parking. Parra itself seems a bit pricey for us right now, so prob stick to Westmead or Granville (have come up with a couple there today)

Prop, advice always welcome, budget very tight, rather keep my money in my own pocket for now :D. We have friends in sydney and hoping to only make one or two trips and keep costs low.

One thing which shocked me a bit was the difference in contracts, the agents won't insert 'subject to' clauses. They assume you're happy to lose your 0.25% if the finance/strata report/inspections don't meet your expectations !!! And conveyancing is expensive too !

Once again thankyou to everyone, I hope it all goes well.

Jus
 
Jus

5% yields you can get almost anywhere, the norm around there will be over 6%
what do you think of these?
http://www.realestate.com.au/property-townhouse-nsw-westmead-106963493

5%? You can do much better than that. When I am scouting around and plugging possibles into my spreadsheet if its not at least 6-6.5% gross then I move on.

Also that townhouse in the above link, I like the damp/water damage on the loungeroom wall where the steps come down from the entry. Would be a fun job to fix that up.
 
For Westmead, there is definitely a desire for units that back onto the park. Lots of units around there now, so the park breaks that up a bit.
I rented a unit around that area 10 years back. I avoided late night jogging in that park due to few 'offers' :)
Things may have improved now.
 
Also that townhouse in the above link, I like the damp/water damage on the loungeroom wall where the steps come down from the entry. Would be a fun job to fix that up.

Or it could be very easy, it depends on where the damp comes from.
With places like that you need a bit of imagination.
The bathroom and kitchen probably only need a clean up and some white tile paint
 
Thanks everyone, I've added a couple to my list and now have 7 back to back appointments of similar places across 3 suburbs so that should give us a good comparison.

Can anyone offer advice on what sort of discount off the asking price agents usually accept in Sydney. In Melb you usually have to offer over the asking price if you stand a chance to buy but I'm getting the impression that 5-10K under may be reasonable in Syd?
 
Do your homework before you go

Thanks everyone, I've added a couple to my list and now have 7 back to back appointments of similar places across 3 suburbs so that should give us a good comparison.

Can anyone offer advice on what sort of discount off the asking price agents usually accept in Sydney.

I am not on the ground there to give accurate indication of this, however you need to know values before you go in the three suburbs you've selected. Look at http://www.onthehouse.com.au/ and navigate the site. Maybe find out what comparable sales have been in those areas or the blocks you are looking at. It also gives a map view of what is for sale.

Further to this you need to understand rents in those areas for similar assets irrespective of what the rea's tell you that you might achieve. Rents are tight in Sydney, however you need to know what you might fetch if there is no sitting tenant. Also work out what your yield is that you are chasing.


In Melb you usually have to offer over the asking price if you stand a chance to buy ...............maybe for stock that is underquoted and going to auction. The Melbourne market has softened significantly and discounting is common.but I'm getting the impression that 5-10K under may be reasonable in Syd?.............You should use a percentage figure. 5-10 K off a 200 K asset is much better than 5-10 K off a 400 K asset. Once again YOU must know values, so that you are more informed for the agents that you deal with. Your offer can then be formed according to your research.


Do as much work as you can online from home so that your trip "on the ground" is optimised. Parramatta and surrounds have a larger rental population than other suburbs. It's the way it is. The amenity is good and there is plenty of improvement in the pipeline to the hub. It's the gateway to the west and has plenty of employment nearby and feeder roads/transport to jobs.

BTW, whilst I have never engaed a buyers advocate........I like the hunt too much :D you could do far worse than utilise Prop's services. The benefit is that they understand values and the negotiation process and their fee can oftened be recouped by buying better in the first instance. Horses for courses really. Depends on how confident you are in a different market (and with different transaction protocol to Vic) and how much time you have.

Good luck :)
 
Back
Top