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NSW 60k Deposit for NSW IP, Where & what should I buy?

Discussion in 'Where to Buy' started by Cmelderis, 10th Sep, 2015.

  1. Cmelderis

    Cmelderis Member

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    Hi All,
    I have a 60k deposit and am looking to buy my first IP somewhere in Sydney/NSW.
    So far I have researched the Central Coast, Newcastle and South West/ Western Sydney Regions and still have not come to a conclusion.
    I am happy to purchase something that will be -CF for the first few years but ideally only $50p/w or so.
    To be honest its all a bit confusing sometimes as of course everyone has different opinions on where to/not to buy so really im just putting this question out there to see what advice people can offer :)
    I do intend to sit on this property for at least 5-10 years if that helps and I think I want to stay under 400k but may go higher if its more worthwhile.
    Thank you all very much for any advice/comments you may have
     
    bob shovel likes this.
  2. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    For IP's now you probably need a 20% deposit.
    Your $60K is really only going to get you a $250K property - $50K will be your 20% deposit and $10K will be stamp duty.
    Unless you can get other finance approval (for say a 10% deposit), you are out of the regions you picked at: Central Coast, Newcastle and South West/ Western Sydney Regions
     
    Leo2413 likes this.
  3. Leo2413

    Leo2413 Well-Known Member Premium Member

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    I agree with @Propertunity.

    Since your looking to hold it for 5-10 years and want to buy around 400k, I would be looking in middle ring areas in Brissy. It will also go easier on your finance. Why have you chosen those areas?

    What are your long term goals?
     
  4. Cmelderis

    Cmelderis Member

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    Thank you for the advice @Propertunity . I may be able to get it to 80k, I am also not in a particular rush....but of course do not want to miss the boat in possible areas, then again I may have already missed it anyway!
     
  5. Cmelderis

    Cmelderis Member

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    Hi @Leo2413
    Thank you for your comments :) As my mother is funding me a large amount of the deposit and she wants me to buy in NSW/Sydney this is the reason I am looking here.
    Long term goals are to have a property that can pay for itself either immediately or in the next few years and something that will of course gain some value in the next 10 years, does not have to be huge gain but some would be nice.
    Maybe its not even worth buying an IP at the moment?!
     
    larrylarry likes this.
  6. Leo2413

    Leo2413 Well-Known Member Premium Member

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    HI @Cmelderis,

    If you plan on just buying only one IP with such a long timeframe and would like just some growth then many of the more 'complex' investments issues wont really apply to you. As long as you buy in places with good fundamentals then long terms it should be fine. With regards to not buying an IP now.. well imo it is worth buying one now. Just need to choose where a little carefully. There will always be good reasons why never to buy an IP..that little voice in our head never goes away. Its the fear of the unknown. Go for it.
     
    skuzy and Cmelderis like this.
  7. Cmelderis

    Cmelderis Member

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    Thank you @Leo2413 could you recommend perhaps which areas in NSW would be worth investigating?
    My other option is to buy a house here in Perth to reside in but I just dont think I trust the property market here......
     
  8. Leo2413

    Leo2413 Well-Known Member Premium Member

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    To be honest even though I'm in NSW I have been focusing all my attention on other markets for the past 9 months or so, so I am not up to date with NSW, but I a sure others who are actively looking in NSW can make some recommendations. @BuyersAgent had some good suggestions the other day. Maybe he can have some input here. :)
     
    Cmelderis likes this.
  9. Scott No Mates

    Scott No Mates Well-Known Member

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    I'd suggest woodenbong in northern nsw. Lovely place.
     
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  10. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

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    400 people....
    Go Bong Bong instead, at least they have a horse racing track.
     
  11. Scott No Mates

    Scott No Mates Well-Known Member

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    What's wrong with Woodenbong? @Ace in the Hole

    Little border town, cool name, one man cop shop, bank, chemist and no ice at the servo ;)
     
  12. Cmelderis

    Cmelderis Member

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    Has anyone looked at Gosford?
     
  13. larrylarry

    larrylarry Well-Known Member

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    I was looking at Newcastle and Gosford but decided to go for Newcastle first. Now I may start looking at Gosford.
     
  14. Cmelderis

    Cmelderis Member

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    Yes, my Mum is keen for Newcastle but I think that prices have already risen significanty there so maybe Gosford would be better.
    I think the Central Coast is a no for me now.
    Thank you everyone :)
     
  15. dabbler

    dabbler Well-Known Member

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    Gosford has a history of holding back, maybe people still think it is a retiree area, anway do your research, there has been lots written about Gosford.
     
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  16. BuyersAgent

    BuyersAgent Well-Known Member Business Member

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    The above locations are options, there are a few more. I guess I would agree with @Propertunity you are probably sub 300k with current funds in current lending climate. As a result you really have a couple of valid choices.

    1 - Try for house (it will be basic) in a cheap coastal area. Cash flow unlikely to be great but growth potential is. Central coast cheaper areas are valid (but a struggle to get in under 300k) or mid north coast along with south coast from Nowra down to Batemans Bay. Im biased but South Coast offers a lot right now with improving roads, shorter travel times to Sydney and the ripple coming down after 10 yrs of no growth.

    2 - Unit in more developed coastal area. Better cash flow and some growth if you get the spot right.

    3 - Decent house in more regional area. This may have strongest net cash flow but least predictable growth. Try and find diverse regionals with low vacancy rates and avoid towns too dependent on a mine unless they mine tesla batteries and you know the ceo and they have told you about a coming expansion we dont know.

    For any of the above, a minor cosmetic reno is likely to help along with growth, and get you in cheap. If its not too rough you can rent for 1-2 yrs first while you save extra funds.
     
    bob shovel, Camper, Cmelderis and 2 others like this.
  17. Azazel

    Azazel Well-Known Member

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    From memory, Gosford has had a fair amount of recent growth, was on several 'experts' hotspot lists last year.
     
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  18. Davothegreat

    Davothegreat Well-Known Member

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    According to this week's bank valuation, our 4br house + 1br granny flat in Berkeley has increased in value by 135k, that's 34% over the purchase price in 17 months of ownership. And it's been CF+ from day 1. Sure wouldn't be anything like CF+ if buying today. I think the Sydney ripple is a little more than a ripple :)
     
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  19. dabbler

    dabbler Well-Known Member

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    A wave ?

    I think that when Sydney was moving that was time to be looking up there, and down, depending on what happens from here will probably dictate future growth, the new lending rules will hit everything, maybe making the wave a ripple :)
     
    Cmelderis likes this.
  20. BuyersAgent

    BuyersAgent Well-Known Member Business Member

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    Hard to say if it will quash coastal demand or increase it. I have plenty of clients looking for affordable options priced out of Sydney at the young end I cant see that stopping straight away. Think if young couple have 100k to play with you were thinking 600k in the city with 90% lend now its 400k with 80% lend, that is a smaller unit further out. Plenty will compare that to houses they can get north and south (and probably over the mountains to a lesser extent) At the other end boomers who last yr all seemed to be holding out for the capital growth in Sydney can now cash in their 1.4m suburban home and buy something really nice near the beach for half that. The cycle moves on loans def having an impact but Im not so sure it will be a flat across the board market killer.