NSW 3 Bed Apartment in Dee Why - Wrong Side of Pittwater Road?

Long time lurker, first time posting an actual question.

My partner and I are currently considering this apartment for sale in Dee Why, guiding $950k (Property A). I put the market value at between $1.05 and $1.1m so expect bidding to end up around those figures, if not more due to NB hysteria. We are looking to purchase a PPOR that we can renovate and potentially sell in 8-10 years and move on up. To mix things up, we're expecting our first child to arrive in the next few months.

We were underbidders at the auction of this apartment which sold for $1.115m in late 2020 (Property B). We elected to stop bidding because we felt that the value had pushed too high (investors bailed out at around $980) rather than running out of finance. We really loved the property and were pretty disappointed to miss out.

We have (to date) been focusing on properties 'East' of Pittwater Road, due to desirability and potential for capital growth. Obviously the absolute waterfront properties present the best potential for growth however moving away from the water it becomes a little bit murkier, especially looking at the numbers.

The two properties in question are virtually identical in layout and size, and are very close in value.

The conundrum is whether to jump on Property A, or wait for another Property B.

Property A (Fisher Road, Dee Why):

• Historic growth (assuming sells for $1.1m) ~ 6%. Gross rental yield ~ 3.5% (~$750/wk)
• Pros: 3 Beds, north aspect, top floor, LUG and storage, large balcony, internal laundry (next to garage), 120sqm on title, very close to public school and daycare (1 minute walk), back of block so quiet despite fairly busy road, 15 minute walk to the water's edge, slightly quieter area, gas cooking/water, visitor street parking short walk away in resi area.
• Cons: 'Wrong' side of Pittwater Road, close to public school, building is off Fisher Road.

Property B (Boronia Street, Dee Why):

• Historic growth ~ 6.5%, gross rental yield ~3.1% (~$700/wk)
• Pros: More desirable location, 'quieter' road, east aspect, water views, 3 minute walk to water's edge, 125sqm on title, large floorplan for 2 beds (big rooms), internal laundry, oversized garage, large balcony.
• Cons: West facing windows, no gas to building, busier area, visitor parking is a nightmare in summer (struggling for cons)

I've got no idea how to compare these two properties - any comments or advice on the viability of Property A would be appreciated!

 

You have inspected both. You are far more armed to make a decision than anyone else who hasnt inspected either or other properties encountered in your search.

I will say this position, position, position. You dont want to be wrong side of the tracks when a beach is concerned and DeeWhy is one of those smaller areas like that. Its like buying on a busy road v a quiet road. Look at recent sales and decide whether to wait if its not what you want as A is the wrong area isnt it ?. While a beach facing unit may cost a bit more a north or south facing could come up and make the difference.

You are renting it and not living in it. You want to buy value and something well demanded. Whether its a pain to park may be no concern to a tenant with no car and who cares nil about visitors. And the appliances wont care there is no gas as they are already electric.