Sydney CBD vs Lower North Shore

[C-mac]

Mascot does have aircraft noise issues but is otherwise a good long-term performer.

Just watch out with train stations; remember, the ideal is to be 200-500 meters away from them, but ideally not adjacent or right next to them, where possible.

Tenants may already feel the pressure of aircraft noise, adding train noise as a variable to the mix could make tenant selection more tricky.

 

[atsim]

Mascot does have aircraft noise issues but is otherwise a good long-term performer.

Just watch out with train stations; remember, the ideal is to be 200-500 meters away from them, but ideally not adjacent or right next to them, where possible.

Tenants may already feel the pressure of aircraft noise, adding train noise as a variable to the mix could make tenant selection more tricky.

the unit is about 100m away. But its a subway.There are 17 apartment blocks around the station precinct and currently only 4 2bdrs vacant . Only issue would be aircraft noise

 

[MIW]

If you look at the CG of Sydney CBD units Vs those say in Greenwich, Woolstonecraft and surrounds you will see that there is not much difference over a 10 year period.

One of the issues you'll face is the strata levies on the high rise units which can be way in excess of $1,000 per qtr. See if you can get into a 3 storey walk-up on the LNS, without lifts, pools, gyms and spas which all add to the strata costs.

Well said. My friend just told me that he holds a unit on 7th floor in Crows Nest with such amenities and strata cost him $1,500 per qtr.
Sometimes people don't look on overall return on investment instead they boast about the rent they receive.....
I would prefer LNS as I wouldn't like to live so close to where I work...it's just my preference though and since I live on LNS I may seem biased.

 

[MIW]

Just to back this claim, Iam paying $609 pq on a investment property with a lift and mine is on level 9 of a 11 storey block. That includes gst also

Really in CBD or LNS, surely not?

 

[china]

some answers

My sister and i want to buy an apartment - its our first property, and we are just starting with our research

we are thinking either CBD or Lower North Shore.: Looking for good capital growth, and high yield too.

We will live in it for a while then maybe later rent it out.

1.Would the Lower North shore be better for capital gains than the CBD? and is that because of too many units in the city?

2.What suburbs would be considered more desirable on the lower north shore? Eg Neutral Bay better than Crows nest?

3.If someone can attach a link (s) as to what be an example of a sought after property in either Sydney CBD or Lower North shore that would be much appreciated.

4.We were hoping to buy to be able to get the first home owners grant but we can spend up to $640,000 if required.

5.We were also considering getting a buyers agent if we found the whole research too much. Has anyone used a BA?

I prefer the lower north shore than directly in the cbd as there are too many cheap and shoddy mega developments in the cbd. I refer to complexes wherein there are over 100 similar looking units in one big high rise. In these settings, the developer has tried to cram in as many sales into the physical space, thereby maximising profit. However, when it comes time to sell, you have to ask yourself why someone would pay you a premium price when there are 99 others with identical units to you.

The suburbs I like on the lower north shore are naremburn, northwood and greenwich. These are little known niche suburbs which most people have never heard of. This means that there will always be limited supply. Otherwise, the cremorne, neutral bay and mosman areas are good but your limited budget of 640k can't really get you into anything good in these areas.

I am not convinced about the value of buyers agents in that they can't really do anything that you cannot do yourself. If you are passionate about property, you will be able to access the same info as BAs. It does mean that you must speak to endless agents and visit hundreds of houses, which personally, I find quite enjoyable.

 

[Azzy]

[
If the place is for an owner-occupied residence, and you have your heart set on one of these two locations; it'll come down to personal preference; but if it's to be an IP; can I ask how you came to compare the two? Or even further, to shortlist these two options?

It will be owner occupied residence but things change and maybe an IP at some time. The reason I came to compare the two LNS and CBD was I wanted somethign close to the city cos i work there and having kinda grown up in Pymble LNS was the next choice.

If you're looking for a mix of great CG and RR, it is not as rare as people make it out to be; I'd just be looking at markets between 2-8km east, south, and west of the CBD. These all have great prospects and some real bargains are to be had in the current downswing market, in these areas; making some properties in these areas not only great for CG, but rental return also.[/QUOTE]

Can you mention the name of the suburbs whne you say 2-8 km east?

 

[Azzy]

Hi China,

I had a look at the suburbs you mention Naremburn, Northwood and Greenwich on realestate.com. They seem really nice. Hope the transport links are good too

 

[Propertunity]

.... Hope the transport links are good too

If you want to check transport links from somewhere to anywhere, go to www.131500.com.au

 

[jjestate]

Azzy, your limited budget upto $640k will make it difficult for you to find decent 2bed+ in CBD and also some of the top LNS suburbs, eg Mosman, netural bay etc. like others have mentioned in this thread.

Demand is a big factor in future capital growth and rental returns, so it really comes down to predicting where will more people want to live in the future. Talking to different BAs should give you abit of a idea. CBD is popular choice but affordability will also be a concern. I would look at some of the available options thats 4 to 5 kms around the CBD east or maybe within 10kms north or west.

I would avoid suburbs that limited surrounding transportation or had little developments over the past few years.

 

[china]

buying the best you can

Azzy, your limited budget upto $640k will make it difficult for you to find decent 2bed+ in CBD and also some of the top LNS suburbs, eg Mosman, netural bay etc. like others have mentioned in this thread.

Demand is a big factor in future capital growth and rental returns, so it really comes down to predicting where will more people want to live in the future. Talking to different BAs should give you abit of a idea. CBD is popular choice but affordability will also be a concern. I would look at some of the available options thats 4 to 5 kms around the CBD east or maybe within 10kms north or west.

I would avoid suburbs that limited surrounding transportation or had little developments over the past few years.

I agree with the above comments. At the same time, I believe that you should invest in the best you can. Sometimes this may mean stretching the budget to buy a more blue chip investment rather than buying something of lower cost and lower potential. When the market rebounds, the blue chip investments always outperform.

 

[china]

what about other developers?

If you're contemplating Sydney CBD, I have 3 words for you. AVOID ANYTHING MERITON! You'll do better swimming in shark infested waters (..and with fewer sharks!).

What do you think of Mirvac and Australand?

There is a perception that Mirvac properties hold their value much better over time.

 

[Marty McDonald]

My sister and i want to buy an apartment - its our first property, and we are just starting with our research

5.We were also considering getting a buyers agent if we found the whole research too much. Has anyone used a BA?

If you decide on the LNS I can recommend Jenny Crocker from Lifestyle Locators as a good buyers agent in the area. She lives in Mosman and really knows the whole lower north shore area well. She is also lovely to deal with.

http://www.lifestylelocators.com.au/index.html

 

[Azzy]

At the same time, I believe that you should invest in the best you can. Sometimes this may mean stretching the budget to buy a more blue chip investment rather than buying something of lower cost and lower potential. When the market rebounds, the blue chip investments always outperform.

What do you think of North Sydney Surry Hills and Edgecliff/Woolahra?

I mentioned to the BA that I was looking for good capital appreciation, good yeild ( for later on when we may not stay there) good tranport.

Do you think Surry Hills is too congested/ grungy/ less prestigious say compared to Lower north Shore.?

Would really like all feedback abt these suburbs so please help me make up my mind.

 

[atsim]

What do you think of North Sydney Surry Hills and Edgecliff/Woolahra?

I mentioned to the BA that I was looking for good capital appreciation, good yeild ( for later on when we may not stay there) good tranport.

Do you think Surry Hills is too congested/ grungy/ less prestigious say compared to Lower north Shore.?

Would really like all feedback abt these suburbs so please help me make up my mind.

Have you considered Victoria Park in Zetland. The transport is good,4 different bus routes all intersecting within about 250 mtrs radius and all going to city centre, green square train station 6-7 min walk and 2 stops to city. As for cap/growth-etc, 2bdr's can be bought about 600ish and rent between 670-700pw. Capital growth is assured as construction on the east village shopping centre begins in a few months, wich consists a full line coles, fitness centre and around 50 shops/restaurants. We live here and recomend it highly

 

[vaughan]

What is the strata for your unit? 700pw sounds ok on a $600k purchase but not if the strata is $1,000 per quarter.

 

[atsim]

What is the strata for your unit? 700pw sounds ok on a $600k purchase but not if the strata is $1,000 per quarter.

would you prefer to earn $50 pw less on the same purchase price to save $600-$800 per year

 

[china]

Good suburbs

What do you think of North Sydney Surry Hills and Edgecliff/Woolahra?

I mentioned to the BA that I was looking for good capital appreciation, good yeild ( for later on when we may not stay there) good tranport.

Do you think Surry Hills is too congested/ grungy/ less prestigious say compared to Lower north Shore.?

Would really like all feedback abt these suburbs so please help me make up my mind.

I think Surry hills has good growth and return prospects. It is part of the inner city ring which has appreciated a lot in recent times due to gentrification. It is close to essentials, has good transport and appeals to trendy, groovy young workers.

Edgecliffe and Woolhara have a totally different dynamic altogether. These are established blue rinse eastern suburbs. Houses here are beyond the reach of beginner investors.

I would avoid north sydney. This area has way too many large high rise shoe box units. Basically, you are paying for worthless airspace.

 

[jjestate]

Have you considered Victoria Park in Zetland. The transport is good,4 different bus routes all intersecting within about 250 mtrs radius and all going to city centre, green square train station 6-7 min walk and 2 stops to city. As for cap/growth-etc, 2bdr's can be bought about 600ish and rent between 670-700pw. Capital growth is assured as construction on the east village shopping centre begins in a few months, wich consists a full line coles, fitness centre and around 50 shops/restaurants. We live here and recomend it highly

As a BA and also a investor myself, I have investments in Zetland (4kms to the CBD) and like what atsim said I also believe that Zetland is suburb with great potential.

There is alot of residential development in that area but not all projects will be worth money, if you look carefully you can find decent size new 2b+ including parking in the area for just over $600,000.
If the building have swimming pool+gym, the strata is most likely to be over$1000 pq but there are good buildings without those facilities has a strata $600 to $700pq.

 

[vaughan]

would you prefer to earn $50 pw less on the same purchase price to save $600-$800 per year

Huh? All I asked was what the strata costs are.

$1,000 per quarter is $77 a week.

 

[Scott No Mates]

Azzy, as China notes , Greenwich may have the convenience you seek. Walking distance to Wollstonecraft station or the ferry.