NSW $1.5-$1.8 mil to spend - Avoca/Terrigal or Hornsby region

My situation

• New Investor. PPOR is 70% paid out.
• I got 1.5 -1.8 mil pre-approved loan to spend
• Focus is maximum capital growth over next 15 years. Target 8%. Prefer 4 bed House with good land size
• Bluechip suburbs (Lower and Upper North shore) are 2.0 / 2.5+ mil now in Sydney region
• Highest tax bracket. Cashflow not an issue. Depreciation will help

Options

• Avoca/Terrigal region (Close to beach but far from city - 90 mins drive. White collar professionals working in city may not help in pushing CG as they will prefer Narrabeen/Warriewood/Palm Beach)
• Hornsby / Turramura / Normanhust / Waharoonga / Waitara region (Away from Beach but good train connection to city)
• Any other options?

Looking for opinion from seasoned investors in this forum.

 

I'd probably park most of that money in Brisbane. Middle ring, good OO areas, add value potential. Approx 600sqm lot homes, . Maybe 2 assets.

No guarantees on performance but I think overall its low(ish) risk with good chance for above average returns over a 15 year period.

 

If your aim is to reduce risk, I'd probably buy 2-3 other properties in other areas/cities more affordable. That would not only give you better returns but allow you a better rental yield, so it won't cost you much to keep them. I like the prospects of Brisbane and Perth at the moment.

From your areas of choice, not many properties with potential, but worth having a further look at the below.

North Avoca - link
Hornsby - link and link

 

Hornsby and surrounds
Or
Otherwise Brisbane say 2 properties

 

Yeah... or maybe as someone else said... 1 Brisbane and 1 Perth (though I haven't even been there!)

 

Why blue chip. I feel that sub $2 million blue chips have seen there gains in Sydney.

The Terrigal Market is very spasmodic it only recently breached its highs of 10 years ago with 30-40% gains in the last 2 years. So it could drop again for the next 10 years.( I own a holiday house there) Rentals are very good at Terrigal.

Box Hill is not a not a blue chip and was my favourite suburb when land was $1200 a metre 3 years ago. Last Friday sales were $2700 per square metre being a 120% increase in 3-4 years. I now believe that is fully priced and will sell at this price.

With that much money I would buy 2-3 properties in different areas.

 

Thanks for your response. Which 2-3 different areas you would target?