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

I agree, am no expert though by a long shot, but the lending changes have to put the brakes on everywhere, it just depends on how much.....the cheaper areas will all be attractive till people think they are no longer all that cheap. Therefore the wave back to a ripple comment.

 

I'm interested to know which coastal town to look for $250-$300 better cash flow? I am looking at units in Wollongong but they are out of my price range...

 

The Northern part of the NSW Central Coast is fast growing rapidly.
I just bought an IP there after haggling at Lake Haven for a low 315k will rent for $360 a week !!!

I am optimistic I could sell this for 350-360k in 6 months !!

If only i had another 350k I would buy another one in that area immediately.(Lake Haven)

I wont point out houses for you or anyone else ( after being bitten on here in the past)but theres still bargains in that area for low 300's, but you will have to do the walk and talk.

The fun in IP investing is getting out there in your chosen investment area and walking and talking to locals and doing the hard walks.
Knocking on doors, walking in the hot sun , sweating my big bum off, walking , talking to locals, shopkeepers, real estate agents, walking,checking out streets, going to auctions, walking the streets, all paid off in the end, it was hard work had to do it on my dats off from my normal job and took a few weeks but i loved it !! Met a lot of nice people .. And bad people too ! A lot of panadol tablets, constant haggling over prices, constant calls to and from agents .


Walk to shops and schools i managed to snare a bargain by knocking on doors after finding diffuculty with agents, but i managed to come across 2 good ones.( sorry i dont give names either after being bitten on here in the past )

Lake Haven, Gorokan, San Remo houses still in your price range, wont be much longer though hopefully

I went with Lake Haven as its close to major shopping centre, schools and close to Sydney freeway , about 45 minutes to Hornsby, but thats me .

 

You don't need a 20% deposit - the whole APRA thing has been blown out of proportion in that regard Some lenders are still lending up to 95%, but realistically your best bet is to aim around a 12% deposit.
The biggest impact from APRA for investors has been on servicing.

 

Thank you for your input! I admire people like yourself who put hard work. It's inspiring. I am time poor and scared to make mistakes. Have spent lots of time reading and learning about property. I had home and investment property until 2 years ago, but life happened and now starting all over on my own. I'm currently renting where it's closer to kids' school and my work. But I'm keen to buy what I can with low income and 60k deposit.
Any suggestions of buyers agent?

 

Nowra has a 1% vacancy rate, and a few deals in that range still, much closer to the bottom of the cycle that Wollongong. Not very many free standing homes sub 300k but if you don't mind getting your hands dirty they are there. Units also in that range. Just be careful of street selection there ares that are fine and others that are not so fine. Otherwise Bay n Basin has a few cheapies left, slightly softer rental market that Nowra proper but it is more coastal and possibly slightly better CG prospects depending on what you buy.

Further south Batemans Bay is still at the very bottom of the market and very quiet so a long term counter cyclical buyer looking for affordable coastal options could do well there and there are options under 300k. The growth may be a bit further off though.

 

When I went to the Property seminar last weekend in Sydney, most of the fellow investors mentioned Orange, Albury & Wagga Wagga as their investing location for yield.

Hope that helps @Cmelderis.

 

Three good towns @Tekoz current vacancies are a bit soft atm though. Goulburn is more expensive but much lower vacancies and Dubbo is also tighter for rentals. Personally I like vancancies under 2% when targeting regionals at least so my initial rental experience is more likely to be positive.

 

Many thanks @BuyersAgent Matt for the sharing, yes at the moment NSW is still a hot market as we know it.

 

I like to think of NSW as many markets. Sydney has been hot for a long time, and appears to finally by slowing. Many other markets are cool/warm/hot/cold depending on where they are. It pays to research each spot carefully.

 

Thank you! I'll be talking to my mortgage broker soon so I'll know how much I can actually borrow. I like the idea of having a house in a coastal area but this is just my emotion talking. Cash flow will be my big concern... Have to get the numbers right.

 

Yes finance is a critical part of the equation. Just to clarify also Nowra isn't exactly coastal, the others are. Cash flow is important too, good luck.

 

Did you mean Berkeley Vale or Berkeley in the South? If it's BV, whereabout? I was looking at kerry crescent and seawind terrace with GF potential.

 

Berkeley in the south.

 

Nice work there mate - and next door (for a moment in time anyway) is the 2nd best performing suburb in the state according to this mob.

http://www.whichinvestmentproperty.com.au/best-suburbs/nsw/2502/warrawong

 

Sorry not state in the country!

 

10 years average annual is under 7% which means it would take more than 10 years to double up in price.

@Matt Knight what makes Warrawong grows that fast ?
The only reason I go to Warrawong from Wollongong is to buy furniture and home appliances

 

As Jess said, you will need 12% + stamp duty. If you purchase NEW in NSW, you'll receive a $5000 new home grant concession on stamp duty, so you could realistically consider 400K in NSW if you buy NEW. 12% is 48K. Stamp Duty would be @ 7800 ( after applying the 5K concession) and that would leave you with @ 4K for legals, building, pest and depreciation.

if you buy 2nd hand, you need to review your budget to 360K. 12% would be 43.2K and , stamp duty would be 12K, with a little left over for legals, building, pest and depreciation.

But having 60K is only one side of the equation - do you also have the borrowing capacity to secure a 90% loan for a 400K purchase?

 

@Tekoz I would never predict that growth rate was sustainable for long! In this case think it was just pent up growth after yrs of no growth, the northern suburbs of wollongong started a couple of yrs ago following Sydney but the growth initially didn't go past the steelworks. Its not uncommon to see compressed but dramatic growth rates as the cycle pushes further out, and in this case down.

 

The valuation just came back for our villas at Warilla and we're up 14% over purchase price in just 6 months of ownership, though I think that was more down to the deal being particularly sweet than a direct reflection of the market. I thought at the time we got in around 50k under value. If that estimate was accurate then we'd still be up almost 7% in 6 months.