Your thoughts on southern sydney city - waterloo, mascot etc

Hey guys,

I'm looking for a ppor and obviously capital growth is a priority. I work and live in the city (pyrmont). I own this property as well, and it's at the point where my place is cashflow netral now so I would like to buy a slightly bigger place and get my friend to live with me and pay me some rent.

I've been looking at the mascot, waterloo, alexandria and redfern area and it seems like you can get some fairly new (under 10 years), 2 br, 2 parking and study apartments for sub 800k. Some even have large sunroom areas and are quite large 2 bedders in general. Very close to the station too

Green square is taking off now, and meriton and so forth have many new products coming on to the market now.

Just wondering if you guys think mascot and surrounds would be a good place to get my next ppor, if there are any capital growth potential or do you think with all these new products coming online or due for completion in the next 2-5 years there will be an oversupply which can't be absorbed?

Any thoughts would be greatly appreciated.

Thanks
 
With regards to existing stock it is really well priced compared to the new stuff coming online. However, be weary, new stock prices are in a false market at the moment. These new units being sold are almost 100% to foreigners. I have seen the marketing for these projects, they sell them to Chinese buyers simply showing a map of Sydney and the location of Mascot being between the city and the airport. They barely know what street they are buying on.

The other thing is Meriton keep a lot of their apartments. Meriton doesn't care about the rent they get and will continue to cut it until they have 100% occupancy. I have seen buildings where Meriton will keep 50% of the apartments. The other thing is they are offering 2 year finance at 5% for local investors and first home buyers. This way there are no settlement issues with valuations as they 99% of the time come in low.

In saying all that, don't compare the price of stock to the new stuff, its not a real market. My advice would be to buy in Redfern as close to the station there are some good apartments on Pitt and George street if you can get your hands on them. Circa $700k 2 bed 2 bath 1 car 100m2 internal.
 
Personally I wouldn't go near that area. There are so many apartments, imaging what it will look like in 10 or 20 years. Horrible (IMHO ;) ). For sub 800K, so presumably $750-800K, surely you could do much much better.
 
Thanks for the replies guys. I really liked the idea of those areas because the products available are quite nice and large. The second car space and the outdoor sunroom or large courtyard style balconies are a plus for me.

Seems like most otp products offered these days only offer one parking for 2br.

I was hoping areas such as mascot which were traditionally industrial areas could ride on the back of redfern and Alexandria which are going through a lot
Of gentrification. That put together with the fact the otp products are much more deerer which might give these older larger products potential to grow. Is my thinking flawed?

I was obviously Afriad of oversupply but it doesn't seems there is much more newer style product this close to the city. Will the desirability of these areas be able to absorb the supply?

Or am I better off parking my
Money in a fibro banger in my druitt? Lol
 
Thanks for the replies guys. I really liked the idea of those areas because the products available are quite nice and large. The second car space and the outdoor sunroom or large courtyard style balconies are a plus for me.

Seems like most otp products offered these days only offer one parking for 2br.

I was hoping areas such as mascot which were traditionally industrial areas could ride on the back of redfern and Alexandria which are going through a lot
Of gentrification. That put together with the fact the otp products are much more deerer which might give these older larger products potential to grow. Is my thinking flawed?

I was obviously Afriad of oversupply but it doesn't seems there is much more newer style product this close to the city. Will the desirability of these areas be able to absorb the supply?

Or am I better off parking my
Money in a fibro banger in my druitt? Lol

It's hard to predict what will happen in that area

Lots of new apartments , but also lots of new offices and potential jobs .

Green square station is one away from central and you can make a very good case do somewhere that close to the city ( assuming it's not under a flight way ) being a good long term bet , BUT , because it's all new and has traditional been a grotty industrial area there will be some hesitation amongst locals....

We're not looking at it personally , but I can imagine it might be an area my son might look at if he wants some where close to the city , but can't afford a more " normal area " ....

Cliff
 
If you can afford the area I would say go for it. 2 bed, 2 parking and study or sunroom will always sell easily with the areas demographics in Waterloo, Redfern, Alexandria. Walking distance of the railway would be my personal pick as the traffic is no fun in peak hour. I'm not so familiar with Mascot but given it's proximity to the city and rail as well as the airport I think it's probably due some growth similar to Rosebery.
 
Why not Pyrmont itslef?

I would buy a 2 bedder in Pyrmont itself if I were you. Factor in the annual costs of commute, add that to your annual repayment and work out your borrowing capacity backwards. You will be much closer to the city and also cut down on the commute time.
 
Pyrmont is a great spot for lots of reasons.
I drove through Mascot this week. It's a while since I've been through there. I couldn't believe the amount of building going on. The steel supplier I use will disappear soon and they'll start making that fetid canal into a local feature.
Who knows whether places there will be a good investment. Those high rise precincts don't do it for me. They talk about how they are creating villages and stuff like that, but on a winters day they all seem pretty bleak.
 
Hey guys,
you can get some fairly new (under 10 years), 2 br, 2 parking and study apartments for sub 800k.
Thanks

I just bought my first PPOR within 20km of CBD, 3 mins walk to station, land size 550 sqm, double story house, for under 800k.... 32 mins cityrail to town hall station in the morning...

and it is not even in the west direction !

what are you thinking ?
 
We buy our ppor in Mascot at the of 2012 for $479000 and had it valued Feb this year by bank for $550000, its an big one bedder one car space. Plus we have Woolies going to be built around the corner as well. We love our apartment and if we feel like a couple of drinks at the opera bar its a small train ride:)
 
some thoughts....

my house currently have a double garage, I think it is within council limits to be able to convert it to a one bedroom granny flat.... I expect to pay 60-70k for that... STCA. which I think it is fine...

given the size of the land I can still park 4-5 cars on the property...

so effectively I am paying 60k for a one bedroom unit within 20km of sydney CBD, walk to station. not bad.
 
bits1010 - what is the rough area you bought your ppor if you dont mind me asking? I'm thinking near st george area? Tempe?
 
Hey my03, if you have your heart set on an apartment, have you had a look at the development in Glebe on the old Harold Park site? Fantastic location - Blackwattle Bay, parks, light rail, walk to Glebe Point Road etc. It's a big site, but landlocked by housing so it's not one of those places like Mascot where there will be dozens and dozens of buildings thrown up over the next few years.
 
Zetland has a decent sized shopping centre that's nearly completed and is close to the Green Square town re-development area, might be worth looking at.
 
development in Glebe

I will actually look at anything in Glebe.... I think recently the prices of that area has come off a bit.... compared to the Chinese suburbs which are crazy atm....

I was renting there in my early days, being able to walk to Sydney Uni and a taxi ride from the CBD without the meter jumping after drinking sessions is a big plus.

not commenting on the others because they are either all seems overpriced / very few parking / high strata.
 
Hey my03, if you have your heart set on an apartment, have you had a look at the development in Glebe on the old Harold Park site? Fantastic location - Blackwattle Bay, parks, light rail, walk to Glebe Point Road etc. It's a big site, but landlocked by housing so it's not one of those places like Mascot where there will be dozens and dozens of buildings thrown up over the next few years.

What DO people think of Harold Park? Does anyone know the price ranges?
 
I just bought my first PPOR within 20km of CBD, 3 mins walk to station, land size 550 sqm, double story house, for under 800k.... 32 mins cityrail to town hall station in the morning...

and it is not even in the west direction !

what are you thinking ?

Only station I can think of is Miranda, is that it?
I believe Miranda will be one of the best performers in recent times and into the future, it's already done very well in the past few years.
It has everything going for it.
 
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