Advice on buying in the Macarthur Region

Discussion in 'Where to Buy' started by Simonking, 3rd Sep, 2019.

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  1. Simonking

    Simonking Member

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    Hi guys. I hope this is the right section to post this. I am in need of some serious advice.

    Me and my wife are looking to buy our first property to live in. We intend to live in it for the long term.

    Our budget is 670K-680K and we are looking at Macarthur/Preston region and anything in between.

    Wife has a bit of FOMO, specially given recent news of house prices on the rise.

    One of the issues we are both facing is, wife has a preference for a brand new house which is only possible in our budget if we buy in one of the numerous housing estates that has been developed in the that region recently. For example: oran park, spring farm, gregory hills etc...

    I do not have any issue with a brand new house. My issue is that these housing estates are congested and high density living. There is hardly any space between the properties and the roofs almost look like touching each other. But given our budget, we can only afford a new house (few years old or brand new) in these housing estates. I also want to avoid properties which have a shared wall with someone else.

    An older house in an older suburb is not out of the question. But most older houses in older suburbs we have looked at in our budget requires a bit of renovation which my wife is not keen on. And most older houses only have 1 toilet/bath which my wife is also not keen on.

    What do you guys think we should do? Are property prices really rising to the point where we will not be able to afford something decent if we wait 4-6 months? Or should we wait, continue to look at properties until we find the right one?

    Thanks.
     
  2. Propertunity

    Propertunity Well-Known Member

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    She's probably right to feel that way, given price rises and Spring and low IRs and a dodgy share-market.

    They are not great investments because the developer is making his margin on sale, so CG is usually low or non-existent in the first few years of ownership.

    I understand. It depends on whether you want to buy 2nd hand at the right price for something you can add value to or whether you are prepared to pay a premium for a brand new shiny one.

    Trouble is you are mixing an emotional purchase for your wife to nest in with your investment eyes on. They rarely go together without some compromise/s.
    They may go up 10% as an educated guess. But there are no guarantees.
    For what? What you need to do between you is agree on a strategy that works for you both. Looking at properties isn't going to help that.

    Yes, once you have decided what the right one looks like.

    Thanks.
     
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  3. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    I would personally wait until the pent up buyers are done and then I would jump in.

    I can't see prices increases because a) there is still a fair bit of supply out that way and b) I dont see wages increasing and even with a rate decrease buyers need to be able to borrow to buy.

    Have you considered renting a luxurious house and investing in a more established area? There is no right or wrong answer as your needs and wants are going to differ from other people.
     
  4. Simonking

    Simonking Member

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    We are currently living rent free which results in a lot of saving every month. Would not want to change that arrangement at this time unless we buy a property. Have not considered investing. With our serviceability at 670-680k, do you have any advice?

    Thank You.
     
  5. boganfromlogan

    boganfromlogan Well-Known Member

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    Buy a house with lots of land.
     
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  6. BuyersAgent

    BuyersAgent Well-Known Member Business Member

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    How long can you continue the rent free arrangement? It might be worth keeping it going for a year or two and rent the place out after purchase to get ahead on the morgage. If it is a family arrangement be aware you might not be able to ask favours from relatives for ever. This one varies a lot from family to family so you will need to let us know what your situation is.

    I love this - would also suggest an older home on a larger block in preference to a new home on tiny block if you want it to be a better investment. You could save the extra rent money for a year or 2 then put that into renovations before you move into it. Thus getting a shiny home when you do live in it, but the extra land should improve capital gain prospects or give yout the extra space for a granny flat or dual occ for future profit if/when you decide to develop further. In all likelihood the older home on larger block will also be in a better location (if you choose wisely)
     
  7. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    I would think twice about renting it out straight away as you will lose the stamp duty exemption for first home buyers and also be up for CGT.

    Your situation is unique in that you are not paying rent but its clearer now. I think there is nothing wrong with wanting to live in a new house in a new estate (you would be eligible for the FHOG as well) however I dont think the block would appreciate in value as much as an established house in an established area.

    It going to come down to want you guys want and not necessarily want makes the most sense from people looking in.

    Back to the original question though I would wait. Lots of land releases still waiting to hit the market.
     
  8. BuyersAgent

    BuyersAgent Well-Known Member Business Member

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    Ah fhb I didn't notice that part. yes the Stamp Duty exemption is a fairly big difference in that case. Horses for courses then (of course)
     
  9. Simonking

    Simonking Member

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    As long as we need. But wife wants to move into our own house sooner, which I understand.

    Wife is reluctant on buying an older house in an established suburb which is going to require renovation. Any any new homes that comes on the market in an established suburb is out of our price range.

    We would be eligible for the stamp duty on exemption on new and older properties . But the 10K grant that is given for buying a first home which is a new home seems a bit hard to get because it is given to properties up-to 600k. And most new properties are well outside that range from what I have seen.

    I do appreciate the advice that has been given. Very helpful. Thanks.