NSW Apartments in Sydney - under 700k

Discussion in 'Where to Buy' started by Cimbom, 20th Sep, 2016.

Join Australia's most dynamic and respected property investment community
  1. Jacque

    Jacque Jacque Parker Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    2,652
    Location:
    Sydney
    Good luck sub $700K getting a unit in Bondi unless it has no parking and is tiny. If you find a genuine 2x1x1 here let me know!! Summer Hill you will find the odd one but it will be compromised in some way eg: share laundry, carspace vs LUG (or no parking on title) nil balcony, less desirable position, problem block/unrenovated etc. Investors (including most of those we work for) tend to favour the smaller blocks in quieter positions with decent spaces and parking. You may need to up the budget or look further afield. Go for space, position and good block harmony/state and good luck!
     
  2. Property Twins

    Property Twins Mortgage Brokers & Buyers Agents Business Member

    Joined:
    31st May, 2016
    Posts:
    2,738
    Location:
    Australia
    Plenty of established ones. I think it would be good to get on the ground before writing it off based on whats currently available..
     
  3. Cimbom

    Cimbom Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,568
    Location:
    Back in Canberra!
    Thanks. I guess a lot of agents do significant bait pricing then (even more than what I was expecting). I was given guide prices of 600-650k. I will obviously do more research before buying but that's just been from my initial enquiries. I don't mind not having a garage for Summer Hill as I don't need it but it would be a factor during resale.
     
  4. Cimbom

    Cimbom Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,568
    Location:
    Back in Canberra!
    Yes, definitely. I'm just doing some initial research. We haven't listed our house for sale yet which we'd need to do (and sell it) before we can proceed with any purchases here.
     
    Property Twins likes this.
  5. RetireRich101

    RetireRich101 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,149
    Location:
    Sydney
    does anyone have an apartment at Rhodes? Just had a look at past growth...it's not all that pleasing even on the back of Sydney boom.
    The unit median in 2003 was $520k
    In 2015 the unit media was $838k....so total 53% increase in last 12 years...
    Hearing some source that OTP purchased in that area 12months ago for 800k, now mid 600k
     
    Gwynneth likes this.
  6. Gockie

    Gockie Life is good ☺️ Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    14,741
    Location:
    Sydney
    At mid 600k it could be a buy for some as long as there are no strata issues.
     
  7. Cimbom

    Cimbom Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,568
    Location:
    Back in Canberra!
    I just realised that most of the more eastern inner-city apartments I had saved don't have car spaces (after reading Jacque's comment again). I wasn't looking for these as I don't need one personally but it seems like a big drawcard given the price differences. Of course there had to be a catch :p
     
  8. Gockie

    Gockie Life is good ☺️ Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    14,741
    Location:
    Sydney
    What you can do is rent a car space from someone else if you need it. Of course better to have one included on title. But not having a car space is not the end of the world.
     
  9. Tattler

    Tattler Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,065
    Location:
    Sydney
    To me, garage is going to become more and more important. It beats carspace as it is also a storage area. I told my sister that I value garage then a new kitchen as you can always renovate the kitchen later, but you cannot build a garage from car space.
     
  10. Gockie

    Gockie Life is good ☺️ Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    14,741
    Location:
    Sydney
    Very true. Note, one thing I really dislike is when people have garages in a strata complex but you can see into them and it's jam packed full of stuff. It detracts from the building complex.
     
  11. Cimbom

    Cimbom Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,568
    Location:
    Back in Canberra!
    I think it depends on the location. It's less important in the very inner city as the convenience and other amenities may be override the desire in many/most buyers but it would be much more desirable when you start to get say 5km or more out from the centre.
     
  12. jodes

    jodes Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    315
    Location:
    Sydney
    Our PPOR apartment in the Eastern Suburbs doesn't have a garage (or car spot) or even an internal laundry. But we are 5 minutes walk from Westfield Bondi Junction and from there it's an 8 minute train ride to Martin Place- when we are that close to everything, we don't even care that we have to park our car on the street.

    To slightly deviate from this thread topic (but still hopefully relevant!), coming from Perth originally (but now living in Sydney and overseas for the past 9ish years), I feel we get a lot of almost "judgement" from our friends in Perth- "oh you only live in an apartment?" "oh you don't even have a car spot" "WHAT YOU DON'T HAVE A LAUNDRY?!"- but as mentioned above, living in a lovely suburb close to everything (including 8 minutes walk to Centennial Park), we really enjoy the aspect of living in a smaller place but using "communal" facilities (dog doesn't play in the back yard as we don't have one, instead he gets to frolic around in Centennial Park at least twice a day, we might walk down the street to a cafe to "chill" rather than relaxing in our own apartment etc etc).

    I think we are in the minority though as people who like this kind of living- and as Sydney continues to grow outwards, and commutes become longer, I wonder if people's mindset will begin to change to align with ours- and realise the 2 hours in commute that is saved every day is far superior to having an internal laundry. :)
     
    Lollie, vtt, Cia and 3 others like this.
  13. Gwynneth

    Gwynneth Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    160
    Location:
    Sydney
    I agree with the suggestion about Concord West/North Strathfield. Very convenient. Personally biased on these suburbs. Close to Rhodes, Strathfield and Burwood. Lots of young families in the 2 suburbs mentioned. Close to Westconnex and only 35-45 minutes away from the International airport. You can't go wrong, going to the North/South/West from this area. Good access to several good schools/transport/city. Even Parramatta and Norwest are not too far away.

    Concord West is not too densely populated and it actually doesnt have its own huge shopping centre but you can access Top Ryde and Westfield Burwood (even Macquarie Shopping Centre) very easily. At the same time it is a very quiet and leafy suburb.
    Shops/cafes from Concord/Five Dock/Drummoyne/Haberfield are also a few minutes drive. Close to Homebush/Olympic Park. Very close to DFO Homebush and BIrkenhead Point for outlet shopping. :-D

    Also have a look at Meadowbank/West Ryde. There are some older units there as well. Meadowbank has an older portion that is not overlooking the bay. The one close to they bay are far more expensive.
     
  14. hash_investor

    hash_investor Well-Known Member

    Joined:
    11th Oct, 2015
    Posts:
    2,439
    Location:
    Sydney / Canberra
    driving around strathfield is not a pleasure though. Another reason to live in the burbs :)
     
  15. standtall

    standtall Well-Known Member

    Joined:
    19th Oct, 2015
    Posts:
    2,701
    Location:
    Sydney, NSW
    I know someone who owns a unit there. Being next door to Rhodes but 20-30% cheaper prices & rents means this little suburb is always in demand for those who like to be around Rhodes but can't afford buying/renting a newer property there. It's so close to Rhodes that you hardly notice it's a different suburb.

    Noise is probably the reason its cheaper than Rhodes. Canada Bay Council is working on a noise mitigation plan which would include taller sound barriers (similar to the ones they have erected on M2 lately) plus slowing down Homebush Bay drive. Sooner or later noise would get fixed and unit stock is now old enough (15+ years) to stay coming on investors' radar.
     
  16. ej89

    ej89 Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    819
    Location:
    Sydney.
    Are you serious? Why would anyone buy a 650-700k home and rent it for $400/week? How is that a good investment? I'll be buying those houses for 550k when crap hits the fan and people are losing $250/week on their investment property...I love the location don't get me wrong, but not the best time to be buying in Blacktown.. wait it out..I know plenty who have bought for 600k and rent it at $400/week.. Costs them $200/week to hold and prices have stayed the same for a year.. imagine how they'll feel in 5 years time when prices are still the same.. I'll be buying it off them then
     
  17. Gockie

    Gockie Life is good ☺️ Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    14,741
    Location:
    Sydney
    I was thinking more with the OO hat on than investor. I tend to think out of all Sydney it's the spot to buy if you want a reasonable entry price. You would be right, rental yields aren't great. But its the same as all Sydney houses. (Other places in Sydney are worse though).

    I would not be buying Sydney apartments as an investment right now - I reckon the CG boat has sailed on them. But Blacktown and Seven Hills houses - still reasonably affordable.
    I reckon check in 12 months time. I believe they won't be any cheaper than they are now and might be say 10% more expensive.
     
    Last edited: 26th Sep, 2016
  18. ej89

    ej89 Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    819
    Location:
    Sydney.
    Think of this scenario. Property is 650k. Rental is $400/week. Costs you $250-300/week to hold it. Price has gone up 10% for the next year and then stalls for 5 years..
    So in 5 years it's worth 715k as it's gone up 10% but in the mean time it's costing you $250x52x5=65k.. which is completely negates that 10% growth..Now imagine that property stays the same price for even longer or goes backwards.. That's what I had to consider when buying.. 2 year outlook is all cool and stuff if I'm gonna sell it, but if I sell it there's high costs involved too which leaves barely anything.. now that 10% growth is also pretty useless for the owner because if he takes equity out, he'll go from losing $250/week to maybe $350/week.. as a PPOR i'd understand buying in Blacktown cause it's a mad location.. I'm gonna be renting in that area when I get married soon..
     
  19. Gockie

    Gockie Life is good ☺️ Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    14,741
    Location:
    Sydney
    Entirely your choice. I think we'll still see growth in Blacktown. But obviously, the bulk to the growth has already happened.... still think interstate or elsewhere is where more growth will occur.
     
    standtall likes this.
  20. standtall

    standtall Well-Known Member

    Joined:
    19th Oct, 2015
    Posts:
    2,701
    Location:
    Sydney, NSW
    Let's not confuse Blacktown with outer Brisbane suburbs.

    I will be surprised if prices don't at least double in Blacktown in next 5 years.

    Blacktown is comparable to what Strathfield used to be 15-20 years ago. At worst, it's a Westmead in the making.

    Blacktown south primary school has an opportunity class now which means parents living in Kellyville are sending their kids to Blacktown school. Blacktown girls high is going to be a selective school soon and there are 3-4 coaching centres on the Main Street alone. This is all pointing to a gentrification of the suburb (driven by academic oriented parents who need to be close to a train station but can't afford elsewhere).

    It's a fairly depressing looking place at the moment but nearing a tipping point.
     
    Property Twins likes this.