NSW $1.6-$2M Investment Rozelle / Inner West or elsewhere....?

Viewed 32 Denison today. Agent said they got immediate offer of $2.5 as soon as went up on website. Obviously rejected and going to auction (!)

..I reckon $2.75, noting busy road and no private parking

 

Looks like you're right. Price guide now 2.7 mil

 

Its a big floorplan for the area and ticks a lot of lifestyle boxes - still a huge price though. I've sold with Adrian nearly half a dozen times so I know he'll do a good job of it.

 

18 Denison went for $2.4. That could go for well over 2.75 on that basis.

I think I’m going to have to give up on the idea of owning in the area and just rentvest. Couldn’t pull the trigger earlier as we have never lived in Sydney / Rozelle but looks like we’ve missed the boat now.

 

I guess it depends what you see the value to be, where you expect prices to rise to, and more importantly what you're aiming to buy. A smaller block 150/sub 150m2 and maybe a 2/1 or 3/1/0, or other non peninsula side of Rozelle may still be possible.

 

Good luck with the search.

Sounds like we need an Inner West meetup.

 

Thanks guys. Yes, it would be good to catch up.

Our issues is that we will need 3 bedrooms + a study in the future (or 4 bedrooms). Our current rental sold for under $1.6M in 2019 and has 3 bedrooms with the potential to build up. It also has a nice little outdoor area. I wish we owned it.

Our other issue is that we don’t know if we will be in Sydney for 3 years, 5 years or 10 years. If it was 3 years, with prices where they are at the moment, we would be better off renting where we want to live (e.g. our current rental for the moment) and investing where it may make a little more sense for us. I am confident that this area will continue to be a strong performer into the future but if we moved cities in a few years and wanted to buy a PPOR there we might find ourselves capped out on the lending and/or find the holding costs for the Rozelle property a bit too high (land tax on a high value property would sting a little). Ahhhhh, fun times....

 

32 Denison St passed in...no bids!!!

..weather on auction day probably didn’t help, but surprising nonetheless given the much smaller one up the street just went for $2.4m. 32 was definitely superior by some way, so no interest at $2.7 was a shock.

..Maybe this boom is starting to run out of puff??

 

Wow and the auction clearance rate this weekend is supposed to be around 90%...

 

Yeah that one at 32 Denison Street is still "For Sale" a week later (!) Clearly no interest at $2.8 or whatever they're targeting, which is surprising in context of other local market activity

 

Owner’s expectations too high...? Original price guide was $2.5. I’m sure they would sell quickly at that price (although I haven’t been to the property).

Some solid prices in Balmain / Birchgrove today. 18 Harris St went for $2.81M by the looks of it. Original price guide was $2.2M.

 

Wow crazy premium essentially for shiny newness vs small land size (147sqm) from what I can tell?!

I think the market is really valuing glossy fitouts currently. I find it a bit strange as I would always max land/location as you can always tart a place up yourself to your own exact taste ‍

 

Crazy price. But then again you see what's happening all over Sydney and I'm not surprised. I just wonder whether in 1-2 years time when/if interest rate rises and the market corrects/stalls whether some of these ridiculous prices will stand the test of time.