sydney- surrounding top 10

[chilliaa]

I am trying to get more experience with the sydney market.
For those of you who are familiar with sydney can anyone point out the top 10 suburbs around sydney. Specifically i am looking at the top 10 most prestigous suburbs surrounding sydney cbd.

Also which is better around sydney or north sydney?
Thanks

 

[equitymate]

If you are talking about, what I think you are talking about, you may want to sit down before you check out prices. Actually no need to sit down, because in these markets they often dont list prices.

Takes some serious coin to buy into these markets. Eastern Suburbs or Lower North shore. I would say the Eastern Suburbs has the edge. On the east check out Point Piper, Vaucluse, Elizabeth Bay, Bellevue Hill & Darling Point. On the north check Mosman, Balmoral & Hunters Hill.

Cheers

 

[equitymate]

I imagine most of those suburbs would be in the top 10. Point Piper is Australias most expensive suburb btw..

 

[BV]

Also which is better around sydney or north sydney?
Thanks

Are you looking for a PPOR, investment, reno job??
Cheers

 

[cbillingham]

Best Value Sydney For Developer Or Reno

Where is the best value suburbs for reno or development around sydney CBD
can anyone name streets?
chris b

 

[chilliaa]

Primarily i would be looking at apartments, i couldnt afford a house.
But in the future i would be interested in expanding from just melbourne.

 

[jbendall]

. Eastern Suburbs or Lower North shore. I would say the Eastern Suburbs has the edge. On the east check out Point Piper, Vaucluse, Elizabeth Bay, Bellevue Hill & Darling Point. On the north check Mosman, Balmoral & Hunters Hill.

I would definetly say that 'Equitymate' is very much correct in his answer, the Eastern Suburbs and Lower North Shore are definetly one of the most expensive and 'exclusive' suburbs throughout Sydney... If you were to invest in Sydney in an 'Exclusive area' I would recommend one of the Eastern Suburbs, the reason for this is because of the demand and supply aspect of it... The Eastern Suburbs are very near the CBD and are in serious demand at the moment. Prices in Eastern Suburbs properties are very likely to go up within the next 1 - 5yrs at what i reckon a huge rate, until the supply is equal to demand...

I'd also say mosman as a whole would be a good medium investment, but I would disagree with Balmoral, the reason for this is because Balmoral is already quite done up already... If you were to develop a property I would highly recommend Mosman as a whole, but not so much balmoral

Cheers,
Jbendall

 

[Rolf Latham]

Northbridge and castlecrag hands down

its not just about the dollars

ta
rolf

 

[asdf]

I think we will start to see a phenomena in Eastern Suburbs and Lower North Shore where quality properties do not leave the family. We all know what happens to price when supply gets squeeze.

 

[Ajax]

Its already happening where I live in Bronte. Houses passed on to family members. Makes sense if parents and children like the suburb and the children when older also want to raise a family there.


Ajax

 

[Jacque]

Lots of great suburbs in Sydney but it also depends on exactly what you buy and where it's located within that suburb. I like the northern side and heard a terrific example of a nice little capital gain on a Beecroft property recently. Owners bought for $850K 9 yrs ago and just sold for $2.15m- ignoring costs, that's a gain of 152%- not bad at all

When you also consider that the only maintenance funding spent on it was less than $5K that's an impressive gain - a great example of what position and patience can achieve with property holdings over time.

 

[asdf]

Have heard of similar impressive gains with PPOR elsewhere in Syd too. But when you really disect the numbers, I question its impressivenes. Eg. If you had to pay $1M to buy a PPOR, you're up for $80k interest costs a year plus say $5k for running costs but not including renos. After 10 years, you'd have shelled out $850k+. By then you will need a new kitchen, bathroom..etc.. so even if the property doubles, you have simply broken even.

Notwithstanding people buy PPOR for various personal reasons, IMO the money to be made in cap growth or PPOR homes is a quick reno, pick the location with the cycle, sell and move on. Hanging on for long term simply chews up your serviceability and ties up holding costs.

 

[equitymate]

I think we will start to see a phenomena in Eastern Suburbs and Lower North Shore where quality properties do not leave the family. We all know what happens to price when supply gets squeeze.

I agree. They are probably the two most tightly held pockets of Sydney already. I imagine that going forward they will be even more tightly held.
Its seems that these blue chip suburbs have the added support of a booming stockmarket.

 

[MichaelW]

Yep,

The Eastern Suburbs are already tightly held. I read an article in Domain or elsewhere recently about record prices being set over there. One REA said they are getting a lot of cashed up Sydney execs walking in saying: "Here's $10M, buy me something in the Eastern Suburbs". But the REA said that properties in that price range are really tightly held and sell as soon as they come onto the market. They're simply not being offered!

I wouldn't write off Balmoral either as suggested above. I rate it above Mosman, particularly Balmoral Slopes with the views out through the heads. Those properties are all in the $5M mark range and only set to go up.

Sydney is absolutely set to explode in price IMHO. We are the banking capital of Australia and there's a whole heap of seriously cashed up execs in Sydney looking to trade up their PPORs. I'll put my hand on heart and say that by the end of the next decade (2020) we'll see a Sydney median above $1M. That's a big call given all the urban sprawl and cheaper houses out West, but that's the direction I see Sydney headed.

My Mona Vale units will fetch $800K each no problem upon completion in today's market. I saw an add for a crappy AV Jennings project build unit development with 30-odd townhouses in it and the banner read "Where have all the cheap houses gone in Mona Vale". They went on to say "We've got them, the last of the cheap units in Mona Vale". And they are cheap. Build quality is rubbish and they're bagged not rendered. Tiny blocks and cheap fit-out. Wait for it: They're cheap alright, only $770K each. My development is large units with a quality fit-out in a small boutique complex of three only. I believe there's a good chance I'll pull $1M each upon completion.

$2M in Beecroft! Wow, Sydney really is on the up and up... I can't wait for my PPOR on the Northern Beaches to realise some of that sort of capital gain. From a lowly $830K base for a large free-standing house with water views on a leafy 1600m2 block, I reckon time is on my side.

Also have a look around North Sydney, Greenwich, St Leonards, Crows Nest, Blues Point, McMahons Point etc. Just North of the bridge to the West is also in high demand as well as the North and to the East with Mosman etc.

Cheers,
Michael.

 

[stumunro]

most decent houses withing a 20km band around sydney are all 1M as it is anyway + just waiting to see what happens to the outer suburbs. Will be a very interesting ride! For me im hoping to have enough assets to build up enoug equity to buy into sydney before the next boom, but it's getting harder and harder.

And you make some good points about Sydney, I think in general people with money will stay in Sydney but i think alot of the migrants coming here will start deferring to brisbane and melbourne as the cost of living in Sydney just keeps rising and rising.

 

[MichaelW]

i think alot of the migrants coming here will start deferring to brisbane and melbourne as the cost of living in Sydney just keeps rising and rising.

I agree!

Sydney is like the New York of Australia. And the Eastern Suburbs/Lower North Shore is like Manhatten.

Immigrants will either flee South to Melbourne (Texas) or North to Brisbane (Canada, since Brisbane really is another Country after all)...

Cheers,
Michael.

 

[Land]

Not convinced..

I'm not so convinced that new comers to Oz will move to Melbourne or Brisbane instead of Sydney due to Sydney prices. The reason I say that is because the gap between Sydney's median and the other cities is the closest it's been in something like 20 years I think.

It's actually for this reason (and of course the economic cycle) that I agree with Michael that Sydney is not too far away from another nice ride up in values.

But for the time being, Brisbane is growing strongly and inner Melbourne is booming, all the while closing the gap on Sydney and therefore starting to make Sydney (the premier city afterall) looking like good value and making it a very worthwhile proposition.

 

[stumunro]

Correct, I have been searching for properties every day and night for the last week and i'm finding it harder and harder to find inner city property that well priced. I keep looking at recent growth figures and nearly all the cities have been off the charts. In the back of my mind I keep thinking now is the time to jump into Sydney before we start to see prices really starting to catch on fire again. Anyone else in the same boat as me? Entry level purchases are still cheaper in other cities, but by the time you find a property and settle you have to really ask is this growth spurt going to continue?

 

[Jacque]

Have heard of similar impressive gains with PPOR elsewhere in Syd too. But when you really disect the numbers, I question its impressivenes. Eg. If you had to pay $1M to buy a PPOR, you're up for $80k interest costs a year plus say $5k for running costs but not including renos. After 10 years, you'd have shelled out $850k+. By then you will need a new kitchen, bathroom..etc.. so even if the property doubles, you have simply broken even.

Notwithstanding people buy PPOR for various personal reasons, IMO the money to be made in cap growth or PPOR homes is a quick reno, pick the location with the cycle, sell and move on. Hanging on for long term simply chews up your serviceability and ties up holding costs.

I hear what you're saying and agree to a certain extent, and definitely in some circumstances, but taking the above Beecroft example, even assuming the entire $850K was borrowed @ 8% over 9yrs IO, the total interest comes to $612K and then let's not forget that the interest (if held as an IP) is tax deductible as well, therefore having the capacity to reduce your taxable income and lowering your real out of pocket costs. There's also depreciation to consider where tax breaks are concerned.

However, assuming it was a PPOR, deducting that $612K in lost interest as well as the original purchase price from the final price still leaves a tidy profit of $688K. Even deducting all other costs ie: purchase stamp duty (c$35K) selling costs (if using a REA assume c$40K) and purchasing costs, rates etc the gains fee profit still looks good to me at approx $600K

Hanging on for the long term may well erode your cashflow to some extent, but providing the asset grows, then leveraging against it also proves beneficial to being able to borrow for other investments.

 

[alexlee]

I thought the usual progression is that newcomers come to Sydney, and then existing residents move out to the other cities.
Alex