Where to buy in Sydney for $700k-$750k

[Scooby]

Hi All,

I currently live in Perth and want to buy a property in Sydney for around the $700k-$750k range and my preference would be a house.

Initially I would rent it out and if I ever had to move to Sydney for work, I could live in it.

Therefore, I would like to get somewhere that has good capital growth, has good public transport and is generally a nice area to live in.

I have been looking at the following suburbs:
- Beecroft
- Epping
- Eastwood

These areas are along the trainline which I think is a bonus.

I have also had a look at some of the northern beaches areas like Frenchs Forrest and Forestville however I'm not sure if the public transport is very good in those areas.

Some areas like Roseville and Killara would be excellent however I think they are out of my price range.

Any advice on these or other suburbs that you feel are suitable would be greatly appreciated.

Thanks in advance.

 

[twobobsworth]

If I was asked which place would prefer to live in it would be:

1) Beecroft
2) Epping
3) Eastwood

Beecroft has more owner occupiers and more houses, areas off the main road are quiet. Epping has many units with epping rd and carlingford road and chock a block during peak hour traffic.

Eastwood also has many units around the railway line. Seems to have a larger migrant population than the other two. Still needs some shopping centre re-development to improve the area.

For investment I would probably prefer Epping as the station is being rebuilt and the new rail line up to Chatswood via the university.

 

[alexlee]

Scooby, why have you pitched your budget at 700- 750? Is that how much the bank said they would lend you? Also, as I'm sure you know living in an IP has lots of CGT implications. Wouldn't it be easier to just buy an IP purely for investment purposes (in which case you don't have to limit yourself to a type of house that you want to live in yourself) and rent or buy another if and when you do move to Sydney?

At that price level the rental yield won't be as good as a cheaper property. Don't me wrong: they are all great suburbs. I plan to buy my PPOR around there but I don't plan to buy IPs there.
Alex

 

[Jacque]

Epping would be my pick too, and an area that I believe will hold it's own in housing due to the new Epping to Chatswood rail link, the plethora of units clustering the station and the excellent surrounding infrastructure.

Beecroft, however, has a higher median house price ($808K compared to Epping's $739K) so you're going to find it more difficult to locate a similar house in Beecroft for the same money as Epping.

I'm not a fan of Eastwood personally, but that's only because I find it a lot more crowded than Epping, and a little chaotic in the centre. Further away from the station, however, there are some lovely character homes and on large blocks of land.

With cg rates averaging between 8.6-8.9% over the last 10 yrs these are solid suburbs, family friendly and in high enough demand to sustain ongoing interest over the long term. Be aware of issues such as termites, however, as I've heard of several homes in the Carlingford/North Rocks/Epping areas having problems with white ants. Being near bush and naturally susceptible, it's something to be nevertheless aware of. Mind you, any house purchase should always include a pest inspection, as you no doubt already know.

Keep in mind, however, that Epping and Beecroft are large suburbs with housing prices generally increasing as the distance to rail becomes more convenient (unless right on top of it like Sutherland Rd) however the close proximity of the M2 is a bonus for the area. Some of the cheaper homes that you see advertised in Epping are actually on the Carlingford border and really too far to walk to any railway station. Buses are prevalent, though, with several servicing the main routes of Pennant Hills, Carlingford, Epping and Beecroft Rds. I know this area very well, having grown up and now living and working in its surrounds so feel free to ask any questions. I'm sure all the other residents will help out with info too

And, yes, you're right about your budget being too skinny for the lovely Lindfield and Roseville areas- unless you're willing to buy a knockdown job and start again you're not going to find much at all in this area.

I also know FF and Forestville quite a bit too, having helped a client recently secure a lovely home for the low $800K's. There are homes in the $600-750K bracket, though, and I don't consider this a bad choice at all. Forestville, particularly eastside of Warringah Rd, seems to be undergoing a lot of gentrification with the streets I've seen recently and the area really has a lovely feel about it (as long as you stay clear of the power lines and ugly water pipeline that runs through the middle of F'ville and FF). Transport, however, relies on buses to the CBD and beaches. Position-wise, though, I like Forestville and find the trip into North Syd very quick on the Eastern Valley Wy. It's across the road from Roseville yet represents better value for money with a median house price some $600K cheaper ($772K vs $1.34K)
Average cg rates over last 10 yrs 8.8% for Forestville.

Hope this helps.

 

[BV]

I also favour Epping although I will agree with Alex that rental returns
won't be very good for that type of property.
As an alternative, you could probably pickup 2 properties if you were willing
to look further out, close to the M2/M7 corridor.
Long term CG about the same and it won't be hard to find tenants either.
Cheers

 

[Scooby]

Thanks for the excellent advice

Hi All,

First of all, thanks for the great advice. This is a fantastic forum.

It seems that from an investment point of view, Epping seems to be a good place to invest.

Just had a quick question for "BV" who suggested that if I look at bit further out, ("close to the M2/M7 corridor"), I may be able to pick up two properties for the same price and for a better yield.

Is this the Pennant Hills?

Thanks again for the great advice.

 

[see_change]

I'd also check out the peripheral areas on the North Shore , on the non railway side of Commonarra / Lady Game Drive and North Wahroonga / Turramurra and around the Crown st Shops in Pymble.

Also around Campbell drive in Wahroonga

These areas are cheaper and you should pick up something around that price.

Have a chat to couple of agents in the area and they'll tell you whether that's do-able in the market.

Cliff

 

[Les]

I live in Beecroft while in Sydney. It is a great area (if a little light in shopping). But, for those who catch a train daily to the CBD, Beecroft allows me a seat on the train. By the time it gets to Epping, it's "touch and go" - and Eastwood - forget it.

I'm sure, over time, this will change, and Pennant Hills will be the last chance to get a seat. Depends what you want, but, as always, the closer to the CBD you are, the less likely you will be able to travel sitting down.

Regards,

 

[BV]

Hi All,

First of all, thanks for the great advice. This is a fantastic forum.

It seems that from an investment point of view, Epping seems to be a good place to invest.

Just had a quick question for "BV" who suggested that if I look at bit further out, ("close to the M2/M7 corridor"), I may be able to pick up two properties for the same price and for a better yield.

Is this the Pennant Hills?

Thanks again for the great advice.

Scooby,
No, I was referring to something approx 20 minutes further out.
Something like Glenwood, Kings Park, Rouse Hill, Quakers Hill or around there.
My thought is this: at the upper rental levels your potential tenant base will be smaller.
Where you are currently looking most people buying there
generally would be those who perhaps upgrade their PPOR.
I prefer much bigger tenant base so I go for cheaper properties furher out
but in nice areas. As an example, I have 15 couples lining up to see one of my IP's
that becomes vacant on Wednesday.
I get the feeling that it will be rented straight away.
Cheers.

 

[twobobsworth]

Something like Glenwood, Kings Park, Rouse Hill, Quakers Hill or around there.

One of the biggest shopping centres in the sourthern hemisphre being built at Rouse Hill.

 

[Jacque]

$750K may well get you two dwellings the further out you go, however with costs you'd be stretching to find two freestanding houses that would be in decent areas. I realise that the tag "decent" varies from investor to investor, but basically try to avoid high HC and known crime areas or suburbs on the perimeters of these.