NSW 1b Ultimo or 2b Wolli Creek

This forum has been a great resource for me to learn more about the property market. I've tried to research as much as I can while looking into buying our first PPOR in Sydney. The information I found here helped us avoid OTP properties, and to focus on finding something in a good location, so we prioritized closeness to the train station and CBD above other things.

We found two properties we like, a one bedroom in Ultimo, and a two bedroom in Wolli Creek. Financially they both work out almost the same (in the 800k-850k range). The Wolli Creek apartment is directly next to the train station (and you can hear the train in the apartment, although that doesn't bother us), and Ultimo is within walking distance to our work.

The problem is, we like both, they both have their advantages and disadvantages. The Wolli Creek two bedroom has more space, and although we don't strictly need the second bedroom, it would be great to have as a study or guestroom. The Ultimo one bedroom is more convenient because it's within walking distance to the CBD.

So, I was wondering, putting emotion aside, from an investors perspective, just based on location and 1bed vs 2bed, what would be the better choice? I think the Ultimo apartment would probably be better for cashflow, and easier to rent out if we decide to move away at some point in the future. Does that make sense? Or does the Wolli Creek apartment have more potential for growth?

Any feedback greatly appreciated.

 

How big is the Ultimo apartment? Is it above 50m2? Do either have a car space?

There used to be a general no go against one bedrooms but as family sizes shrink and more people live alone, there seems to be more interest in these from an investor perspective- plus generally better yield.

From a personal perspective, and having lived 45-55 minutes from work and now living 17 minutes door to door, I have a "worse" apartment now but it's 100% worth it to be so close to work, CBD, amenities etc. There is no more room to build in close proximity to the city so although Sydney may not grow for some time, I can't (in my humble opinion only) see somewhere like Ultimo going down.

 

850k should get you a nice one bedder in the inner eastern suburbs if you are happy with something that size. Places like Ultimo are overbuilt and are not considered as desirable IMO. You will still be very close to the city. I would completely cross Wolli Creek off the list

 

Well as a ppor I would personally say Ultimo hands down. I am biased as we live in Glebe. This whole area has so much to offer. I am not so confident about an apartment in Wolli Creek with train noise. How loud is it? This could affect quick letting out etc even if it doesn't bother you. Parking in Ultimo is a pain but on the other hand you don't really need a car if you live there.

 

Thanks a lot for the replies.

@jodes The Ultimo apartment is 63sqm including balcony. Both apartments come with carpark.
@Cimbom We had difficulty finding something we like in the eastern suburbs, but we will look into it again.
@natasha it's not very loud, just audible. I can imagine that after a while we wouldn't even notice it.

It seems like the consensus is that Ultimo is the way to go. Thanks! that gives us more confidence

 

Really? I have even seen decent two bedders sell around the 900k mark so you should be able to get something within your budget. Are you looking for a new build?

 

The reason we could find anything in the eastern suburbs is probably because we are non-rational buyers, so there are perfectly decent places we just outright rejected because we didn't like the floorplan. I realize though that we will probably move away someday, at which point the place will become an investment property, so we should probably consider that angle as well.

 

I'd choose Ultimo, even Pyrmont over Wolli Creek, no question. Fantastic lifestyle location, village atmosphere, close to everything. I've owned my one bed unit in Ultimo for 15 years and had great growth. Feel free to message me with any questions about my unit or the area.

 

For investment purposes, A one bedroom in Wolli Creek for 850k is a terrible deal. For that price I'd go eastern suburbs any day.

For ppor purposes, just buy wherever you like and can afford.

 

Thanks a lot. Seems like we dodged another bullet. When we started looking we almost bought an OTP property in Wolli Creek. That must be the worst thing you could do .

Is the reason Wolli Creek is not great as an investment because too many apartments being built there?

 

Oh wow. Now I know where Wolli Creek is. I thought it was near Zetland!

 

no....tempe way and further. Me? ultimo.

 

Just had a look at Ultimo apartment listings on realestate.com.au be prepared to pay $850K for an apartment. I lived in Ultimo when I started working...I found it convenient to work.

 

Just some recent sales that come up on my real estate app saved search:

27/2 Goodlet Street, Surry Hills, NSW 2010 - Property Details (not east but seems like a decent buy as a 2 bedder)
3/3 Gosbell Street, Paddington, NSW 2021 - Property Details
42/20 Macleay Street, Potts Point, NSW 2011 - Property Details
38/4 Ward Avenue, Elizabeth Bay, NSW 2011 - Property Details
3/63 Watson Street, Bondi, NSW 2026 - Property Details (2 bedder)
10/456 Edgecliff Road, Edgecliff, NSW 2027 - Property Details (2 bedder)
2/1-3 Edgecliff Road, Woollahra, NSW 2025 - Property Details

 

2/20 Macleay Street is beautiful.

 

I've been to both Ultimo and Wolli Creek with the view of investing/living. I personally prefer Ultimo especially if you're going to have a car spot. Wolli Creek seems to have many similar-looking large high-rise developments that I found difficult to tell apart and might carry an "oversupply" vibe when it comes to selling. Agent adverts also seemed of higher quality in Ultimo/City, which is also walking distance to CBD, Harbour, etc. Might come down to rental yields, but a 63sqm with balcony (does it have views?) in Ultimo on AirBnb might fetch you similar income to a 2-bed at Wolli Creek, unless you let the latter as a multi-occupancy/students. I'm also more inclined to go with the Inner Eastern Suburbs, Redfern, City, Inner West over Wolli Creek but might be biased.

 

I dont know from an investment perspective but I bought and live in wolli creek maybe 4 years ago and I love it

Im a bit away from the station but i think its a great area. One of the best stations, always a train there and <15 mins ride in

People carry on, 5 min drive up the road is in the "inner circle" and its magically worth more

 

The early promise about Wolli Creek was that it was going to be a 'village'. It isn't. There is a collection of out of scale buildings with wind tunnels between them, a Woollies and a Dan Murphys. The village never happened and isn't going to. Some of the towers have now been up for 10 years and they're looking a bit shabby.
If I had $800-850 to spend on a flat, I would be looking in Marrickville. There are some interesting small scale buildings planned for infill sites. Now that the suburb is getting more expensive, better developers are turning their attention to it. Of course, there is still the odd shocker going up.
And Marrickville is already a village.

 

That would be my train going through Wolli making a lot of noise (sorry). Also you get the freight trains going through there too.

On the plus side it happens to be located in the exact direction to the west where you don't get aircraft going overhead (north west over Sydenham and southwest over Rockdale), but from the side that faces the highway you can actually hear the roars off the runways.

I agree with Depreciator that it is not a village. It is sterile, lacking in character, lacking in emotion and community feel, and represents the worst aspects of what Sydney is becoming.

I hate it. Disgusts me with a passion.

 

Most of these overbuilt and unoccupied monstrosities would never even be approved in many parts of the world. The mass producing developers are in the back pockets of the government nowadays