Advice needed - Dulwich Hill or Homebush

Hi everyone,

I'm just after some advice regarding an investment property in Sydney. I am a first home buyer with little exposure to the property market (have just started working full-time and want to get my foot in the door). I am considering purchasing a 1-bedroom apartment in Homebush or Dulwich Hill. I have considered Homebush as an option as I could afford a brand new apartment (~$450,000-$460,000), but like the idea of an older apartment in Dulwich Hill as I feel the area has more potential. I'd really appreciate any advice at all!

 

Dulwich Hill - established, able to conduct due dilligence etc

 

Hi Eda
Welcome to PC.
Are you looking to invest long term?
With some of these apartments, be mindful of the supply/demand in the areas, which may mean the value doesn't go too far. But if you must live in these areas, and this is all you can afford, then this may work for you.
Is the $450-460k based on your borrowing capacity, deposit size, or both?

 

I am looking to invest long term, and the $450-460k is based on both my borrowing capacity and deposit.

 

Homebush v Dulwich Hill.

First thing that struck me was what very different areas they are. New build apartments are in abundant (over)supply and could be a issue for sometime in Homebush / Strathfield which also had a spike in building approvals for apartmnets that arent yet complete. The Sydney pockets where more units are set to hit the market amid a population slowdown

 

There is Homebush, Homebush West and Homebush Bay.

Around Homebush station to the Parramatta Road area, yes there are so many new apartments popped up. Few more lands are also being cleared. I'm sure they will become apartments as well.

 

Why only these two suburbs? There's so many others with good transport links that fit your budget, though obviously depending on where compromises need to be made eg: balcony vs carspace Also be aware most banks are wary lending on internals smaller than 40sqm.

 

Hi Eda - out of those 2 areas, from an investment perspective, I would pick Dulwich Hill.
However may be worth confirming the price ranges for both of those areas. Current median price for units in Homebush is $650,000 and around $800,000 in Dulwich Hill.

Is there a a reason you are considering these specific areas? Will be good to know more about that you are aiming to achieve (e.g. is it a PPOR or investment?)

 

Someone has advised here somewhere before how to haggle. If your budget is around $460k try haggling and offering to apartments more than your budget for example like this:

https://www.realestate.com.au/property-apartment-nsw-dulwich+hill-133969510

It was suggested asking the Agent for the Contract of Sale and have your Conveyancer/Solicitor review the contract making sure everything is in order and send the SIGNED CONTRACT with your OFFER ( $460k ) and see if they accept. No harm in trying, right?

You can also hire a buyer's agent to haggle for you and find primo fundamentals areas with what suits your budget. I heard Buyer's agent fees around $8k but that is worth it imho if you are going to save all the headaches and pitfalls in buying at the wrong areas.

Important thing to note if you are going to offer with a signed contract of sale, Make sure your solicitor include a 7-14 days clause in regards to Due Diligence check or some sort. This is for your peace of mind that you are not buying a " lemon apartment "

If in any case the strata report shows anything that will cost you money to fix, you can use this to haggle more... a few hundreds/thousand here and there.

Dulwich Hill suburb report: Free Suburb Profile report for Dulwich Hill NSW (2203)

 

Hmm not sure you'd be able to haggle this low- unless it was a highly motivated and desperate vendor. Never hurts to throw in the offer though. Although the lowest most recent sale in this block was no. 8 (sold 5/19 for $470K) that didn't have a carspace (car space adds anywhere between $60-100K in the Inner West)
Again, I'd be looking elsewhere for your budget but best of luck with your search

 

I am a big fan of Dulwich Hill. Sorry to bust your balloons though, I don't believe you will buy there at that budget. If you do, come see me- I'll give you a job!

 

There have been recent studio sales around that figure, and even some smaller 1-bedroom units.

 

I am also considering other areas, but have most interest in these two areas, particularly Dulwich Hill. The property I purchase will be an investment.

 

We've bought several properties in Dulwich Hill over the years and like it too Nice access to city transport, good local vibe and better value than nearby exxy Marrickville and Leichhardt. Think you need a little more budget however

 

Spot on. If going for that region, you may want to look at Homebush West on the western side of parramatta road (i.e. not the Paddy's market side). This side does not seem to have the same oversupply issues and stock seems to move quickly. In addition, there isn't the high rise you see on the other sides - probably max 3 stories, no swimming pools, lifts etc.

Dulwich Hill is a different ball game and price bracket.

 

Generally this is good advice but in the Inner West you need to replace your words: "Make sure your solicitor include a 7-14 days clause in regards to Due Diligence check or some sort", with: "Make sure your solicitor includes a signed 66W waiving all your cooling off rights." Otherwise your offer is going no-where except the circular filing cabinet.

 

"the circular filing cabinet" Love that and it's actually the first time I've heard of that

 

The nicest parts of Homebush West I remember are the streets to the immediate south of the markets, over the Crescent, near Airey Park.

 

the pocket south of homebush station and flemington station is a good option. especially if you can get an older 1 bed walk-up on Burlington Road