Your thoughts on Cronulla

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devo76

OK guys soon i will be in the position to buy IP number 2. I bought IP number 1 about 8 months ago in my home town on the south coast nsw.Its still flat around my area so im looking at two options.
Option 1 By local again but a place i can do up or subdivide as i believe capital gains will be some time off yet.

Option 2 Buy somewhere else !!!!

Now i keep comming back to cronulla for a few reasons.
#I have grown up on the beach and want a coastal IP
#I work in aviation with a good chance of working in sydney in my career.
#I would live in cronulla if i had to work in Sydney
#I want to invest in Sydney as i believe its the next to improve
#Places near the water in cronulla seem cheap to me.

Now im thinking 2 bedder unit in block no bigger than 8,Atleast 1 carspace prefer garage.Close to water,beach,train and cbd,Hopefully water glimps.Generally attractive building.Between $250,000 and $350,000

Now what are your thoughts?. I know there are better places to invest but theres alot worse too.

What are the better areas in cronulla? I was thinking near shark island.
 
Don't think you can go too far wrong really. Cronulla hasn’t really had the best reputation in recent years but I wouldn’t let that turn you off. It’s a nice place to live and finding a tenant won’t be difficult. It has good facilities – train to the city takes 50 minutes, Westfield Miranda isn’t far away and of course the beach, pubs and restaurants locally.

I lived in Caringbah for two years and its still the best place I’ve lived in Sydney out of about 8 suburbs. I haven't lived anywhere super flash but its still a great place to live IMO.

Any idea what the % p/a growth has been like for the last 5-10 years for units? (I know houses would be double digits) and make sure the yield is reasonable so its not a huge cashflow drain. Something newer would be a bonus for building depreciation.

Then things to be wary of, but chances are you are across this anyway –

- No highrise with high Body Corp
- Stick to smaller blocks
- Check for nearby housing commission units. Some of Cronulla is pretty average, other parts are very nice. You want the latter :)
- I probably wouldn’t buy anything past Northies (ie between Cronulla and Kurnell). South Cronulla, near the station or in between Cronulla / Caringbah is the nicest. Near the baseball field.

Let us know how you go

Grimey

EDIT - Just saw your comment RE: Shark Island - Stick to that end of Cronulla
 
Around 6.8% PA is the growth rate over ten years. Rent return is around 5% at the moment.
I just think to get a nice unit that you can walk to the beach,train,pubs and cafes for at or below $300,000 sounds not bad to me.
Any other thoughts?
 
Whilst I haven't lived there, I agree with FrankGrimes. I wouldn't discount Cronulla as an investment option at all.

But, there are alot of buildings that are still on Company Title, which may hinder finance.

Have you looked at prices in Cronulla yet? If you can find something at $300k that would be great. I might be a bit out of touch, but I would have thought you'd be looking at more than that...
 
Just did a quick RE.com scan, cheapest asking price is 305k, couple around 330, 350 etc. Doubt you will get much at 250, this is sutherland pricing. If you do get one in a small block at 300ish I think not a bad deal, you will need to be prepared to do a renno on it at this price to make it shine.
 
knightm said:
Just did a quick RE.com scan, cheapest asking price is 305k, couple around 330, 350 etc. Doubt you will get much at 250, this is sutherland pricing. If you do get one in a small block at 300ish I think not a bad deal, you will need to be prepared to do a renno on it at this price to make it shine.
Click to expand...

Even Sutherland you are looking a 300k + for something nice. Any 2 bedder less than 300k is pretty average. Yields about 5% as well I would imagine.
 
FrankGrimes said:
It would be a luxury beachfront unit. Cronulla house median is over 1 Million.. Could you afford a house in Caringbah? Would probably offer better CG.
Click to expand...

I'm not planning to buy there; just interested.

I can't believe that there are enough brain dead people around that will spend that sort of money and drive up the price of a unit to those levels.

A house I can almost understand as there is land, more space etc; but a box in a stack of boxes? :eek:
 
Ok from what i can see,with a bit of price discounting i should be able to get a well positioned 2 bedder with car space and improvements for between $280,000 and $350,000. I may be able to find a similar place but with one bed for mid to high $200,000 but my guess is it would be better to go the extra coin for the extra room.I guess thats another dillema.Do i buy a better 1 bedder or a lesser 2 bedder. I'm thinking option two.
 
Go two if you can afford it, suit more potential tennants and more buyers - means you can have couples with a bub - there is a bit of a baby boom on in the shire atm (MIL is a midwife at the suth hosp)
Surprising how many people will accept a 2 br unit as a fairly long term housing solution now - many will wait a long time for a backyard. They love the beach/coffee/trend factor.
 
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