$700-800k budget for investment in nsw?

Hi guys, im a newbie here. Just migrated to australia. First home buyer too but i cannot afford to buy in the area i want to live so im thinking of just buying my first investment. Want to get some idea on how far my budget can go? Looking at sydney properties my only option is apartment. Is it worth investing on an apartment versus a landed house? Or is it better to go farther from sydney and invest on land instead of apartment? Thanks in advance

 

Plenty of old houses for that budget. Look west of parra? Whats the desired suburb?

 

Thanks for your reply. Prefer artarmon or chatswood because of school catchment.

 

Everyone would prefer Artarmon or Chatswood but you missed that boat by 20+ years.

You might find a duplex up towards Thornleigh in that range.

Otherwise Toongabbie/Blacktown would fit the budget.

 

Personally - while North Shore is excellent for your own living however for investment the rental yield is terrible. It's not for someone who is starting out, need to have plenty of money in the back pocket. I've recently inspected a 2 bed walk-up unit in Gordon and gross rental works out to be just above 3%...it's crazy low! Unless you're able to find a house with granny flat but again it'll usually be minimum of $1.5m+.

You will get more bang for the buck by going west for investment - something with a block of land and granny flat on top. Seen a couple lately around Blacktown, Quakers Hill & Penrith which you can achieve somewhere close to the 5% gross rental yield and will make it much easier to hold as investment. Do your own research & keep an eye out on vacancy of the area as well and work on conservative numbers.

Cheers,
David

 

Thanks for this info. You have a good point.

 

If you are interested do look at Quakers hill, properties currently are good value and selling within few days to max 2 weeks. To add there is current shortage of stock overall

6 Taro Place, Quakers Hill, NSW 2763
58 Tangerine Drive, Quakers Hill, NSW 2763
3 Summerfield Avenue, Quakers Hill, NSW 2763
3 Loy Place, Quakers Hill, NSW 2763
27 Lobelia Crescent, Quakers Hill, NSW 2763( also under contract)

 

I think your reply were meant to be for the OP? @reef

But now that you've posted these links, I dare say these properties will be under contract to PCers very very soon

Cheers,
David

 

It's absurd that 800k is our budget range.

 

It really comes down to what cash flow you’re willing to accept and what your future plans are. If you don’t mind poor cash flow but looking for a long term hold, Chatswood and Artarmon will always have strong demand.

However lower cash flow not only impacts the now, it impacts your ability to borrow more money in the future and thus grow your portfolio.

There is nothing wrong with an apartment over a house on land depending on the purchase itself, apartments in some areas often out perform houses in others.

- Andrew