NSW Apartment project with good access to CBD under 1.2M?

Hi! first time buyer here looking for your opinion,

My partner and I are looking for 2b apartment in Sydney. We both are working in CBD, so the easy access to CBD is quite important for us when looking for the apartment.

We planned to buy somewhere we can live ourselves, but can rent out when we wanted to move. The 1.2M budget is estimated value after we have discussed with the loan agent.

We have been to several display suites, but can't decide which one to choose (or should we keep looking?). Please let us know which one might be the best option in your opinion:

1) Newly completed apartment in Burwood - 8 stories (we prefer low rise apartment) - asking for $1.2 - $1.3M. A bit over our budget but we can try to push for this one if it worth it.
- Pros: It is super convenience (15-20 min walk to Westfield Burwood, 10 min walk to Burwood train station, 5 min walk to Burwood China town) which might be attracting renters.
- Pros: doesn't seems like Burwood will be over-supply, as agent told us most houses here are heritage, they won't sell.
- Cons: we feels like Burwood is quite crowded as we visited there on Sunday and there were way too many people.

2) Off-the-plan apartment in Zetland - 10 stories - asking for $1.1M
- Pros: we like the quietness around this area now
- Pros: It is surprisingly close to both of our workplaces in CBD
- Cons: I saw too many new apartments are building in this area (including the one we are looking at). It seems to not worth the investment as it could be over-supply, as well as it doesn't has any department store (we do love convenience, so this is bad)

3) Off-the-plan apartment in Paramatta - 40 stories (If we buy this one, we planned to live not too high as we prefer low rise apartment) - asking for $800 - 900k
- Pros: more affordable than other options
- Pros: seems to have good investment amount put in by the gov
- Pros: metro project should help us get to CBD pretty quickly (hopefully)
- Cons: this area seems to be over-supply as this building alone is 40 stories, and there must be other apartments coming as well. It might not make money when we sell.

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We are renting at the moment in North Sydney, so we have no problem with off-the-plan apartment which might complete in 1-2 years time.

If you have other recommended project, please feel free to let us know as well.

 

How much capital appreciation do you expect from this mil plus you are plunking down?

what happens when you want something bigger in the future?

Why dont you have issues with otp completing in 1-2 years time, because you dont need to move in right now? Are you aware of the issues builders are having with costs? Are you aware of valuation risks and how do you judge building quality?

what has been the history of values for apartments like these?

Thought exercise: what is your view of a 2 bed unit in a 3 storey brick unit block, close to a train station, 40 minutes to cbd, about 40 years old?

where might you want to live, at what budget, in 5, 10 years time if / when you have a family? House? Schools?

 

Been in your position before and bought a unit in Parramatta. One year down the line was in market for free standing house.
In current uncertain market off the plan seems like risky proposition.
If you are fine with Parramatta do also consider a duplex as an option.

 

Thank you so much for your thought provoking questions. I am not able to calculate the appreciation / value as much since I have no information on what to expect in these areas (especially new ones like Zetland or Paramatta)

Here are some more information regarding our situation. Happy to hear your advice:

- Why dont you have issues with otp completing in 1-2 years time, because you dont need to move in right now? << Yes. We are renting with 1 year contract at the moment before we are looking to buy. We love the area we are currently in, but the apartment cost is quite crazy (1.5M for new 2b apartment)

- Are you aware of the issues builders are having with costs? Are you aware of valuation risks and how do you judge building quality? << Yes. For the one in Zetland, the builder is quite popular, so we do trust they will deliver on time and within the cost.

- Thought exercise: what is your view of a 2 bed unit in a 3 storey brick unit block, close to a train station, 40 minutes to cbd, about 40 years old? << This is not bad at all. We are not sure about the ongoing maintenance cost we will have to deal with it though. Could you please advice?

- where might you want to live, at what budget, in 5, 10 years time if / when you have a family? House? Schools? << We heard from Uber driver that Burwood area has great school. We haven't heard about schools in Zetland or Parramatta.

Please let me know what do you think regarding the above info.

 

Thank you for the advice. I am not aware of duplex available in Paramatta. We will do a research for sure.

 

@Timblake38 . It might pay to do a search for "highrise" on here.

Generally speaking large, off the plan units are very risky and have caused no end of pain for people who have bought them - either due to low capital growth or building defects.

Grab yourself a cuppa and start reading this forum.

You've come to the right place

 

Cheers mate. We will start looking!

 

Steer clear of any that don't pass scrutiny:

David Chandler OAM on LinkedIn: #Developers #Builders #iCIRT | 19 comments

 

Worth considering The Anders at Ashfield - medium rise project and close to the train station. Ashfield is convenient to city via train, neighbourhood shopping centre with everything you need (Aldi, Coles, Woollies, Post Office), good eateries and good primary school.

 

Thank you! We were looking at the one from the same developer in Zetland. This looks like a closer apartment to train station which we like.

 

If I have borrowing capacity for 1.2mil, I will buy this 2 bed unit in Lane Cove for 615k. It is such a good value and in a desirable suburb with good schools. I will spend the remaining 600k in 2 houses in Perth for 300k each. Rental income from 2 houses can enable me to borrow more.

https://www.realestate.com.au/property-unit-nsw-lane+cove-139252131