Sydney : Inner west Vs Eastern Suburbs
- Thread starter humph
- Start date
Humph,
Welcome to the forum!
If you're going to live there then it really depends on where you'd prefer to call home. If you're asking about capital gain prospects then it really comes down to land content so I guess the semi wins out on that count.
Its all really crystal ball stuff though, and there are some reports you can buy if you're interested that does a lot of the predicting for you using marginally more scientific approaches. RP Data are one of these if you're interested...
http://www.reports.rpdata.com.au/
Cheers,
Michael.
Welcome to the forum!
If you're going to live there then it really depends on where you'd prefer to call home. If you're asking about capital gain prospects then it really comes down to land content so I guess the semi wins out on that count.
Its all really crystal ball stuff though, and there are some reports you can buy if you're interested that does a lot of the predicting for you using marginally more scientific approaches. RP Data are one of these if you're interested...
http://www.reports.rpdata.com.au/
Cheers,
Michael.
Howdy
A subject close to my heart and my address, I dont know if you need this to work out your yield, but Local courier paper has rents in Coogee - 8 properties 2 bedroom renting 330 pw - 360 pw.
This is a peak time for rentals in Coogee as the place is full of backpackers.
Prices around 400k would get you a very old 2 bedder maybe with a car space and if your really lucky a garage. A lot of the older blocks dont have parking.
Cheers
A subject close to my heart and my address, I dont know if you need this to work out your yield, but Local courier paper has rents in Coogee - 8 properties 2 bedroom renting 330 pw - 360 pw.
This is a peak time for rentals in Coogee as the place is full of backpackers.
Prices around 400k would get you a very old 2 bedder maybe with a car space and if your really lucky a garage. A lot of the older blocks dont have parking.
Cheers
Don't discount the inner west for rentals, though. Keep near infrastructure (especially transport- rail best bet esp around Stanmore area) walking distance to shops, and preferably a quiet street, and you'll have better luck. Also keep in mind that you can also value add to anything you buy in order to increase the rental yield.
Hello & welcome,
I would suspect both areas are likely to be good rental prospects given the continued demand by the young singles and couples demographic.
I'm sure you would have thought of it but the property has to have a targetted niche that it fills well and ideally should have that certain "something" to make it easier to sell or rent out. Looking at the prospects with this in mind as well as Jacque's idea of being able to value add will help to narrow down you choices.
The "value add" suggestion is an admirable one and well worth considering. It is harder to do attic conversions or extensions to units while quite common in inner west semis. Of course, in a semi you can still do all the renovation type things like painting/kitchen/bathroom/floors that are usual in sprucing up units.
One last suggestion; perhaps you could consider Steve Navra's excellent Rental Reality formula to give you further guidance on which is the better prospect. Do a search on the Forum to find out more.
Good luck and tell us how you go.
Regards,
Kenny
I would suspect both areas are likely to be good rental prospects given the continued demand by the young singles and couples demographic.
I'm sure you would have thought of it but the property has to have a targetted niche that it fills well and ideally should have that certain "something" to make it easier to sell or rent out. Looking at the prospects with this in mind as well as Jacque's idea of being able to value add will help to narrow down you choices.
The "value add" suggestion is an admirable one and well worth considering. It is harder to do attic conversions or extensions to units while quite common in inner west semis. Of course, in a semi you can still do all the renovation type things like painting/kitchen/bathroom/floors that are usual in sprucing up units.
One last suggestion; perhaps you could consider Steve Navra's excellent Rental Reality formula to give you further guidance on which is the better prospect. Do a search on the Forum to find out more.
Good luck and tell us how you go.
Regards,
Kenny
Glebe said:
Theres some great areas south of Paramatta Rd. Petersham/Lewisham/Stanmore
Newtown/Erskinville..etc. All on the train line to the city.
The northern inner west suburbs are more expensive. Drummoyne/ Rozelle/Annandale/Leichhardt..etc and have correspondengly lower yields.
I'd say the inner west is down 10-15% compared to 18 months ago and possibly 20% in some places. Thats where i'd be buying but not with the low yields at the moment. Low yield mighnt concern you so much as you are looking for a PPOR.
Coogee is a great place, possibly a bit overpriced and touristy these days and may take ages to achieve further cap growth.
Kenny,
The rental reality formula isnt for comparing different suburbs (or yields and prices in different suburbs). Its used for comparing price and yield for properties within the same suburb.
I would go for inner west and in the future you can value add. In Cogee you can simply reno.
Also supply and demand. Cogee will become like Bondi with units everwhere and an old unit with no view will rent accordingly. Yes they can add units to inner west but the market there likes some yard so the dmeand is less.
Leichardt was always a no buy due to planes. Yet it has done much better than most due to upgrade to Norton St and such. Consider the infrastructure.
Cogee is very hard to get and out of. Parking is limited. If they get light rail it will boom but that is not planned.
Peter 147
Also supply and demand. Cogee will become like Bondi with units everwhere and an old unit with no view will rent accordingly. Yes they can add units to inner west but the market there likes some yard so the dmeand is less.
Leichardt was always a no buy due to planes. Yet it has done much better than most due to upgrade to Norton St and such. Consider the infrastructure.
Cogee is very hard to get and out of. Parking is limited. If they get light rail it will boom but that is not planned.
Peter 147
Flight Paths
Coogee is on the flight path which runs over the beach and up Oberon street, the planes come in very low and loud on certain days - obviously depending on wind.
Renovated 3 bedroom units with a courtyard were going for around $700K closer to the beach were even higher. Hard to find a park but its the same with every beachside subsurb in the Eastern Subs.
I would suggest you also look at Maroubra and little bay. There is a new Landcom development at little bay - the old hospital site.
Coogee is on the flight path which runs over the beach and up Oberon street, the planes come in very low and loud on certain days - obviously depending on wind.
Renovated 3 bedroom units with a courtyard were going for around $700K closer to the beach were even higher. Hard to find a park but its the same with every beachside subsurb in the Eastern Subs.
I would suggest you also look at Maroubra and little bay. There is a new Landcom development at little bay - the old hospital site.
Interesting question. We own a 2b/rm unit in Bronte which we used to live in but now rent out. We moved into a 2b/rm freestanding house in Marrickville. The unit doesn't have views but is a 5 minute walk to the beach. The house is in a good part of Marrickville and close to transport, schools etc.
We have found that both properties have in the last 3 years (since owning both) had a market value which is very similar. So in terms of capital growth - while I agree with what was said above about land value leading to better growth, when comparing 2 suburbs like Coogee/Eastern suburbs and say Marrickville/Inner West, the fact that the E/subs is "more desireable" may actually counter balance the effect of the property being a unit i.e., lower land value.
A word about the flight path...definately worse in Marrickville than Coogee. While in Coogee you hear the planes there have been many instance in Marrickville that you also FEEL the planes!
If I was buying a unit in the E/subs though I think now is a good time as the prices have definately dropped. Try and find something close to the water if you can...no surprises there!!
Good luck!
We have found that both properties have in the last 3 years (since owning both) had a market value which is very similar. So in terms of capital growth - while I agree with what was said above about land value leading to better growth, when comparing 2 suburbs like Coogee/Eastern suburbs and say Marrickville/Inner West, the fact that the E/subs is "more desireable" may actually counter balance the effect of the property being a unit i.e., lower land value.
A word about the flight path...definately worse in Marrickville than Coogee. While in Coogee you hear the planes there have been many instance in Marrickville that you also FEEL the planes!
If I was buying a unit in the E/subs though I think now is a good time as the prices have definately dropped. Try and find something close to the water if you can...no surprises there!!
Good luck!
I won't even try to predict which area will have better returns over the long run. I have some experience to offer in eastern beach suburbs though. If you're looking at Coogee you MAY be interested in some of the smaller, quieter, backpacker free, beachside suburbs such as Clovelly, Tamarama, and to a lesser extent, Bronte. These places are very close to Coogee yet you avoid that whole "backpacker" environment. I stayed at Coogee Crown Plaza over Xmas / New Year for a couple weeks and I must say that Coogee at night is no paradise. Unless you're 17, have an english accent, love to get blind drunk in the evening and pick fights with passing pedestrians, it may not be your cup of tea during an evening stroll. Pass for me. In the day though, the place looks great and family oriented.
You would most likely pay a premium for the areas I've mentioned but I believe will do better in the long run. And from my observations Clovelly, Tamarama and Bronte tend to be more favoured by owner occupiers rather than the transients which would also be a factor to consider.
I almost paid $700K for a 3 bedder in Coogee in middle of 2003 and so glad I did not after spending a couple weeks living in the area.
Just my experiences,
Cheers,
You would most likely pay a premium for the areas I've mentioned but I believe will do better in the long run. And from my observations Clovelly, Tamarama and Bronte tend to be more favoured by owner occupiers rather than the transients which would also be a factor to consider.
I almost paid $700K for a 3 bedder in Coogee in middle of 2003 and so glad I did not after spending a couple weeks living in the area.
Just my experiences,
Cheers,
It depends what you mean by "inner west". There's the fashionable suburbs of Newtown, Erskineville to the up-and-coming areas like Marrickville and St. Peters. The north-of-parramatta areas like Leichardt, Haberfield, Annandale will always be the more prestigious end of the inner west and family-oriented.
We used to live in Stanmore and Marrickville and loved it. Except for the planes in Marrickville (Although many have noise insulation and air conditioning). We would have stayed in Stanmore if we could afford to buy. It has a very established feel to the area.
Coogee is Coogee. I don't know the area very well, but it seems nice.
In addition to all the good comments on land values, placement to schools is going to be a long-term deciding factor for family areas. Trinity Grammar (Summerhill) and Newington Boys (Stanmore) are two very highly rated public high schools in the Inner West. They are a moderating effect on prices. The prices may get stupid, but the inner inner west will never become unfashonable (IMHO, hope I don't eat my words).
Some inner west suburbs have a 20xx post code and others start with 22xx. And that makes a difference in people's perception. Newington Boys obviously sits on the Marrickville(2204) side of Stanmore Road, but suburb boundary line does a BIG detour to include it in Stanmore (2048). If you're not sure what the fuss is, 2200 is Bankstown. Shudder. So like I said, it depends on which part of the Inner West.
Mind you, if you can get land, then that is the better choice from an investment point of view. You may also get a better chance at long term, professional tennants in the Inner West as well.
My two cents.
We used to live in Stanmore and Marrickville and loved it. Except for the planes in Marrickville (Although many have noise insulation and air conditioning). We would have stayed in Stanmore if we could afford to buy. It has a very established feel to the area.
Coogee is Coogee. I don't know the area very well, but it seems nice.
In addition to all the good comments on land values, placement to schools is going to be a long-term deciding factor for family areas. Trinity Grammar (Summerhill) and Newington Boys (Stanmore) are two very highly rated public high schools in the Inner West. They are a moderating effect on prices. The prices may get stupid, but the inner inner west will never become unfashonable (IMHO, hope I don't eat my words
).Some inner west suburbs have a 20xx post code and others start with 22xx. And that makes a difference in people's perception. Newington Boys obviously sits on the Marrickville(2204) side of Stanmore Road, but suburb boundary line does a BIG detour to include it in Stanmore (2048). If you're not sure what the fuss is, 2200 is Bankstown. Shudder. So like I said, it depends on which part of the Inner West.
Mind you, if you can get land, then that is the better choice from an investment point of view.
You may also get a better chance at long term, professional tennants in the Inner West as well.My two cents.
Coogee or inner west
Easy
Coogee (if you can get the right place) as noted above there is a lot of poor quality stcok around in Coogee. You MUST have parking, preferably a garage. There are some streets you should not buy in (do research here).
But...buy right and you will get the rewards. I have lived in Coogee, Clovelly, Bronte, Bondi Tamaramma etc. No kudos there. Only OWN in one of them.
Inner west..good if you can get a good one on the train line..Stanmore ..Petersham..Summer Hill.
TMR
Easy
Coogee (if you can get the right place) as noted above there is a lot of poor quality stcok around in Coogee. You MUST have parking, preferably a garage. There are some streets you should not buy in (do research here).
But...buy right and you will get the rewards. I have lived in Coogee, Clovelly, Bronte, Bondi Tamaramma etc. No kudos there. Only OWN in one of them.
Inner west..good if you can get a good one on the train line..Stanmore ..Petersham..Summer Hill.
TMR
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