Sydney - Looking at first property

[my03]

Hey guys, I'm in the market for my first property. My budget is sub 750k, and I was wonder what's your opinion on what type of property in which areas I should investigate?

I'm not picky about where i will live as it will only be short term (a couple of years) until I can afford my next property, but obvious capital growth is what I'm after.

I've nailed it down to a few options:

- off the plan 2br apartments in the wolli creek, turella, arncliffe area (2 br apartments 6-700k OTP, advantage is it's new, and I get my grants, it's close to station but disadvantage is too many of these on the market, and potentially overpriced.

- older apartment in the inner city, north shore, or eastern suburbs.

- old house in blacktown, girrawen, toongabbie, wentworthville - disadvantages is the area may have crime, and housing comission, advantages may be potential for dual income (granny flats) while I'm living there, and also large blocks in excess of 900m2 could have subdivision/development potential in the future. These areas also have properties well within busget that are within 1km of the station.

- brand new townhouses in the wentworthville/parramatta fringe areas, they appear to be close to the station and can take advantage of the grants.

What are your thoughts on these products and what considerations should I have when considering the best investment for me in respect to capital growth? Have I missed out on any other property types?

Thanks guys

 

[Redom]

Hmm interesting breakdown. My thoughts:

1) New apartments, great to live in, closer/better location - but new stock is generally overpriced, especially apartments. You may be a year/two late on this too.

2) Older apartment, could find one that suits CG strategy better than option 1. May be too late again, theyve boomed already...will it continue?...can it continue (affordability concerns).

3) Sounds like a good play for CG, especially if you can create value/higher CF.

4) Pretty decent option, could be a good balance between all options provided.

If your flexible on location, i'd go with 3 for the purpose of creating value...and 4 for a more convenient middle ground.

 

[beachgurl]

I agree that you're probably a bit late on achieving any short term CG in the Wolli Creek area.

Re units close the the city - there are more housing commission units closer to the city and east (I don't know anything about north so can't provide feedback there) than in the west. If you are concerned with living near those of a lower demographic ensure you take a drive and ask around. Once you venture south of Coogee you will find large complexes of HC.

Western Sydney - you've missed the boat price- wise on getting a subdivideable block in the suburbs you've mentioned. You may be lucky to find something sub 750k around Toongabbie but you're looking at the mil mark around Wenty.

Find something renovateable in an area you are happy to live in. Ensure that you are not overpaying in comparison to renovated properties. In some instances a small renovation can give you some good equity in the short term. Adding a GF will only increase the potential yield and make it a good long term investment. As many previous threads indicate, the addition of a granny flat is unlikely to add much value from a CG perspective.

Re townhouses - they would be a good set and forget option once you move out, but for that price (or cheaper) you'd be better off purchasing 1 or 2 suburbs from the train line and building a granny flat.

 

[Fleur De Lis]

I was told that one bedders (units) around city suburbs wont be built with garages any more. Clover I was told thinks if you live close to city you don't need a car.

One bedders in a building called EVE are selling off the plan for 610k in Erskineville - no garage - small too.

A one bedder around the corner was bought for 470k four years ago with garage and storage and two bedders were selling for low 600k. On the weekend a two bedder in this building sold for 830k. woo hoo.

Do you think the one bedders around the city with "garage" will be little gems one day.

I agree with beachgurl, find something in an area you want to live in even if its a reno.

Fleur

 

[gcb160]

[QUOTE

Re units close the the city - there are more housing commission units closer to the city and east (I don't know anything about north so can't provide feedback there) than in the west. If you are concerned with living near those of a lower demographic ensure you take a drive and ask around. Once you venture south of Coogee you will find large complexes of HC.

My sister works on the lower north shore and she says there are heaps of housing commission units around there and she sees some really interesting people walking around.

 

[gcb160]

One bedders in a building called EVE are selling off the plan for 610k in Erskineville - no garage - small too.

What a rip off! I don't care where it is. That is not value for money.

 

[monalisa]

girrawen, toongabbie, wentworthville - disadvantages is the area may have crime, and housing comission,

Crime can be anywhere.

Also check out Pendle Hill.

I think there is some housing commission in Toongabbie.

South of the station (for Toongabbie, Wentworthville and Pendle Hill) is Holroyd Council, and North of the station is Parramatta Council.

Parramatta Council area is preferred by home owners.