Sydney's options

M

my03

Hi guys, looking into buying my first property. In terms of investment I've learnt that western Sydney is the winner characterised by low vacancy's and high growth and good yeild.

The problems is i want to take advantage of my first home buyers grant and as you know you need to live in it for at least 6 months.

Western is just not viable for me as I'm based on the north shore, so I was wondering if you could recommend me some areas to look into, that I could live in, but also expect good growth that I can hopefully use equity 12 months down the line to fund my second property.

I'm interested in your thoughts of the following areas:

- northern suburbs (ryde, strathfield etc)
- lower north shore(Artarmon - north sydney)
- upper north shore (hornsby-chatrswood)
- inner west (camperdown, newtown, surry hills)
- Sydney CBD

I'm looking at a budget of 350k max and was wondering what type of product (1br?2br?) and in which areas do you think I should look out for.

Cheers
 
my03 said:
hopefully use equity 12 months down the line to fund my second property.
cheers
Click to expand...
IMO your chances of getting sufficient equity in 12months are very small.
I think you'll need to be looking at a 5 year timeframe for that to happen
 
my03 said:
- northern suburbs (ryde, strathfield etc)
- lower north shore(Artarmon - north sydney)
- upper north shore (hornsby-chatrswood)
- inner west (camperdown, newtown, surry hills)
- Sydney CBD
I'm looking at a budget of 350k max and was wondering what type of product (1br?2br?) and in which areas do you think I should look out for.
Click to expand...

You won't get 2brm unit for that in any of these areas. Well not one you would want to live in anyway. Or it will be in a large complex (like battery hens) on a main road or other sub-optimal location.

1brm studio, you might get for that budget, but you will struggle to get a lender who will finance it (under 50m2). It will be student accom.

Seriously consider going wester than these areas.
 
Last edited:
Every once in a while you can probably get an older 2 br in West Ryde or Meadowbank (between Ryde & Strathfield) for around that much. You may need to put some work into them though. Here's an example of one sold recently:

http://www.realestate.com.au/property-unit-nsw-west+ryde-106839531

Close to transport, close to 2 large shopping centers ie Rhodes and Top Ryde. If exercise is your thing, you got bike trails and parks along the river etc.

There are also 1 bedders that go for just under 300k as well.

Just watch out for strata fees on some of them.. that grant won't look like much after a few years ;)

Can probably get some 1 bedders in Lilyfield as well (http://www.realestate.com.au/property-apartment-nsw-lilyfield-106664169)

Hope that helps.
 
G'day mate,

Just curious why you couldn't put up with it for six months while living on the north shore?

Its not so bad. I purchased a place in Hassall Grove and have been really happy with it. Purchsed for 327K and its renting for $380 week. About to get it revalued and based on what places are going for at the moment and a bit of work ive done i think it will be around 350K.

The commute isn't so bad with the M7 and M2. I was working in Alexandria and then Gladesville and the longest it used to take me in the times i was travelling was an hour. If you think that is your best option for investment is it not worth putting up with for 6 months?
 
I agree with Propertunity. For $350k max you are not really going to get anything bigger than a studio (and probably not a nice one) in most of the areas you listed. Maybe if you can go without parking?

I would think you would have to rule out the lower and upper North Shore. With that budget I would focus on Ryde to the Strathfield area. You have picked all the popular areas where supply can be tight but throw another $100k on and you would do a lot better.

Might also depend how picky you are since you intend to live in it. I would be heading further west for that budget and "do it tough" for 6 months then rent if you hate it.
 
What about Dee Why? I haven't looked for a while but you used to be able to get units there for that price. They're doing big things with the bus interchange at Dee Why and its on the beach and next to Warringah Mall. Maybe they're all way too expensive now. I am an old investor now and haven't looked for a while.

Cheers,
Michael
 
I agree with the general consensus here.

Here are a couple of options to consider:

(a) Buy a place in the West for around the $300-350k mark and live in it for the necessary 6 months. Make the most of the 6 months. If I was you, I'd get in there and do a little renovation. Depends obviously on the individual property but I'd be buying one that you can improve/create equity from. I wouldn't be relying too heavily on CG to provide sufficient equity for Property 2. Couple manufactured equity and CG equity and that's a better idea IMO. Time will fly and you'll learn a lot from the experience. If you go into the whole proposition with a negative attitude, you'll hate every second of it. Even if you currently reside in the North Shore, what's 6 months in the overall scheme of things? Nothing. Move in with a friend, boyfriend/girlfriend? There are ways to make the journey enjoyable.

OR

If you hate the idea of (a) and don't believe the FHOG and stamp duty exemption are worth the 6 months living, then

(B) Buy out west and just rent the place out from day one. Make sure you budget for the stamp duty and no FHOG and have the necessary capital to cover yourself.

Best of luck,

Steve
 
Red Car said:
Might also depend how picky you are since you intend to live in it. I would be heading further west for that budget and "do it tough" for 6 months then rent if you hate it.
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RC,

I think if the OP is purely buying for investment purposes he shouldn't worry TOO much / be picky with the aesthetics of the property, but instead be picky with regard to the numbers. Obviously, if it's an investment, make sure you buy something people will want to rent, but just because YOU wouldn't rent it doesn't mean others WON'T. Just another point to consider. Buy to meet your target markets needs. Also, exclude the emotional elements and buy something that's going to make you money and allow you to begin building your portfolio.

S
 
Steven Fulop said:
RC,

I think if the OP is purely buying for investment purposes he shouldn't worry TOO much / be picky with the aesthetics of the property, but instead be picky with regard to the numbers. Obviously, if it's an investment, make sure you buy something people will want to rent, but just because YOU wouldn't rent it doesn't mean others WON'T. Just another point to consider. Buy to meet your target markets needs. Also, exclude the emotional elements and buy something that's going to make you money and allow you to begin building your portfolio.

S
Click to expand...

Of course, thats all pretty basic stuff. However if the OP is not willing to do 6 months in the west I am going out on a limb and suggesting they may be the picky type...
 
Red Car said:
Of course, thats all pretty basic stuff. However if the OP is not willing to do 6 months in the west I am going out on a limb and suggesting they may be the picky type...
Click to expand...

Maybe OP doesn't want to be too far away from family/girlfriend etc. there are other factors to consider than just numbers.
 
pdawg said:
Maybe OP doesn't want to be too far away from family/girlfriend etc. there are other factors to consider than just numbers.
Click to expand...

Which is why I considered having their girlfriend move in with him ;). Best of both worlds that way. And there's no reason why they can't see family 2-3x a week on the NS.

S
 
Steven Fulop said:
Which is why I considered having their girlfriend move in with him ;). Best of both worlds that way.
S
Click to expand...

Been there done that. Intentions are always good but not always the best thing for your relationship(s).

Anyhow straying a little far from the original topic. Will be up to the OP. All feedback so far has been valid :)
 
Red Car said:
:p Its not like the person is moving to China! Ah Sydney.
Click to expand...

yeah where getting stuck in traffic is common and takes longer to travel to other parts than it would to fly to Melbourne or Brisbane.

Anyhoots, OP outlined his criteria unless I missed something :confused: :

my03 said:
Western is just not viable for me as I'm based on the north shore, so I was wondering if you could recommend me some areas to look into, that I could live in, but also expect good growth that I can hopefully use equity 12 months down the line to fund my second property.
Click to expand...
 
pdawg said:
Been there done that. Intentions are always good but not always the best thing for your relationship(s).

Anyhow straying a little far from the original topic. Will be up to the OP. All feedback so far has been valid :)
Click to expand...

Each to their own I suppose. For the numerous people we have discussed this issue with, 95% of their responses have been positive. So long as you don't suffocate each other and have your own hobbies, interests and groups of friends, things should be fine. Having personally never done it, I can't comment from my own experiences.

pdawg said:
yeah where getting stuck in traffic is common and takes longer to travel to other parts than it would to fly to Melbourne or Brisbane.

Anyhoots, OP outlined his criteria unless I missed something :confused: :
Click to expand...

His criteria is there, but I don't understand why it's not viable? :confused:

The practicality of actually doing it seems certainly viable to me. The 6 month sacrifices are well worth the FHOG and Stamp Duty exemption IMO. I'd be living in the property for 6 months, then rent it out. If you can move back into home, GREAT, if not, rent back in the NS close to family/friends. Rent where you want to live and keep accumulating your assets elsewhere.

S
 
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