apartment vs townhouse vs house in norwest-westernSydney

Hi guys, whats your thoughts on buying one of the following as PPOR under 600-560k. Which of the following will have less impact if correction occurs and should not cause a loss if i need to sell in 2-3 yrs time

option 1: an average 2x2x1 ground-floor apartment in Rouse Hill, 12-15min walk to the new to be build station. under 580k. (brand new 2 bedders apartments were sold for 650-750k 2 bedders in last 4/5 months)

option 2: a townhouse in Quakers Hill: 1-1.5 km from station

option 3: old house in Doonside just under 650k fair distance from station

option 4: old house in Mount druit 2km from station


Please advice me what are the flaws with each option?

this will be our first ppor but definitely not the dream/best ppor
would want to sell when its suitable to buy/build a better ppor in few years time
Thanks
Ks

 

Again thinking is it a foolish idea to spend 500-600k on a unit/ townhouse or an older house in the outer suburbs to get this stamp duty exemption and then if there is a correction and we have negative equity.

As a couple we have 100k savings without counting next pay day (70k genuine salary savings + 30k brought from OS). Its a shame that we cant utilise this savings to buy any PPOR we like and cant even feel confident of buying something smaller with stamp duty exemption.

Brain tells me keep saving and renting for few more years until there is a price fall. But what if there is no major crash, just a mild correction and steadystate for next 5-8 years!!

 

If you feel there is a strong chance you'd need to sell in a few years time, then it may not be wise to buy, particularly at this point in the cycle.

Unless you have a strategy to manufacture significant equity, you need to be in property for the long term.

Another option is continue to rent in Sydney and become a borderless investor?

 

Looks like you are on a role with opening threads. Maybe search the forum about unit vs house vs townhouses. Lot of threads already there but for your specific example where you dont have the budget to buy a house(I'm assuming) the next best thing is townhouse.

Also do some research about every suburb you want to live in.

 

Then youre still better off waiting. Youre never going to be happy with this unless you buy and it booms. You should prepare yourself for disappointment. Because youre not being rational. Not having a go at you: pretty common for first timers.

 

Your strategy might actually be better to convert the PPOR to an IP later and then acquire another PPOR. A strategy worth considering and planning for. There are CGT rules that can be in your favour with this approach. Tax advice is needed.

I'm assuming the units are new builds as there are no older units in Rouse Hill. If a new build, you still face a possible settlement / valuation risk if the market turns. Although it sounds like price has come off a bit, which might partly reduce the risk. Do you know what LVR is needed on the loan?

For units, also make sure you check strata fees. They can be quite high for new units.

I'm still of the opinion the opening of the new rail link in 2 years time will help to partly shield the immediate area from the affect of a correction. The extension of the Rouse Hill Town Centre is also set to start construction next year. This will result in the size of the town centre increasing by about 70%, increasing employment in the area.

One risk you may face is oversupply of units. Time will tell. Large unit developments are planned as part of the extension of the town centre. There will also be large unit developments near Kellyville Station. Whether there is a risk depends on if there is the demand to absorb the units that will be coming on line. Also recognise that major rezoning has occurred along the train line. Suburbs like Castle Hill, Showground Station and Cherrybrook will also get large unit developments.

 

Hi everyone, this forum gave me a very good insight about buying OTP land in Sydney outskirts. since I figured out its not the safest thing to buy our dream home in Sydney (we cant afford). Nor its the safest to buy a land in NW/ outskirts of Sydney and build our dream home under 1m that we can afford.

Where would you recommend to buy IP now with 30-50k deposit (hoping to get lmi off being a medic person).


I have around 100k savings and would like to think about a small IP in any growing parts of Australia. (Scared to put up all my savings in one place).

Looking for a good CG in 2-3 yrs and would love to get a place which is neutrally geared with rent. Is there any area/suburbs that exist in vic/qld or anywhere else now? Or all the booming all over the country is likely over? is its insane to ask for any CG considering CGT if sold in 2-3 yrs?


Is it a better option to keep saving in bank and it will be 160k in another year. 240k in 2 yrs. looks like the house prices are not going to rise very high any further in areas i like e.g. Ponds (even if there is no correction/fall). So I will be able to buy in 2019-2020 with the savings

I am still trying understand the all the options and not in any rush anymore. . . Please give me more insight.

Thanks

 

You want yield, growth in the short term and peace of mind. Never going to happen.

Experienced investors when the risk is in their favour. Inexperienced investors want no risk.

 

Your best approach is to go to the meetups. @Taku Ekanayake is organising one for Thursday night in the city. I should be there.

There will be plenty of people there happy to talk about their investment approach.

As the poster above alluded to, it is difficult to get capital growth together with a satisfactory yield. Some people have been having success with H&L packages in Melbourne though. Good yields are available in parts of Brisbane & outer-Brisbane. It has been anticipated on the forums for a few years that growth will move to Brisbane after the boom winds off in Sydney/Melbourne.

Don't necessarily rule out buying a PPOR. Just be aware of the risks in Sydney at the moment and take those into account in your decisions.

Details of the Meetup below. It's free to attend. Mostly regular investors and completely informal. Just chit chat. A number of brokers tend to go along and they are good to talk to for advice.

NSW - Sydney CBD Meetup No. 7 - Thursday 8th June