NSW Budget - 700k | PPOR but potential to rent maybe

Hi all,

I have been scouting around the market for a couple of months now with a pre-approval but thought I'd hop on and create my own thread.

My current budget hovers around 700k although I can up it to 750K as well (prefer not to though).

I'm currently looking at these options below:

1. 2 bedder apartment at Meadowbank
2. 2 bedder apartment / unit at Ashfield
3. 2 - 3 bedder townhouse in Berela / Surrounding Areas
4. 2 - 3 bedder townhouse in Parramatta / surrounding Areas

This will be a PPOR (as I want to capitalize on stamp duty) but I have the intention of making this into a rental property perhaps later. This means, since I work in the city (although COVID-19 right now), I don't want to buy too far west nor really north west.

I'd love to hear some opinions on each of the options! I know most people would say pick townhouse > apartment but still putting those options there just in case.

Cheers

 

How many units in the buildings you are looking at?

 

Townhouse near Parra or Unit in Ashfield (assuming its a walk-up with around 10-12 in the block). Best growth prospects going forward imo.

 

Meadowbank: It's a mix - I inspected one recently which only had 18 but I also inspected one that had like 40+ in that one block (was a huge shock to inspect to be honest). I know most people said you should buy the 'older' side of Meadowbank but I was surprised to see how tight everything is on the older side.

Ashfield - I'm looking at units which are predominately boutique so wouldn't be a lot in each building. I'm trying to avoid looking at apartments even though they look better on paper. I think the last one I saw only had 10 - 16 (I forgot the exact number sorry)

Berala - So this one has no strata levies and looking at the block, it seems like 4 townhouses in total, (2 in 30 and another 2 in 30a). Not sure what this means...

Parramatta - I haven't honestly looked too much into Parramatta yet as I thought south-west would be a better investment townhouse wise but happy to be proven wrong (since I personally feel like Parramatta's development is peaking since I grew up in this area since as a kid).

I know most people say look at older units but honestly from my research, it just seems like buying a boutique (less in the building) apartment that has some years under its belt is the better middle-ground.

I am not sure if I am doing research wrong but some of the older units just seem like poor investments / PPOR.

 

Thanks! I've definitely kept my eye on Ashfield and actually there's some really good ones with very few in each block.

Do you think there is room to grow in Parramatta? I've grown up in the area and I just feel like the growth has kind of peaked but then again, I haven't been in the area for a couple of years now.

 

For units, there are two things that you want to think about.

future body corp. lifts, etc cost especially at they get older.

what does an old, small block unit have more of compared to a newer unit block? Redevelopment value.

 

By redevelopment value, do you mean the body corp opting to 'spiff' things up and then that increase the value of the building and thus the units themselves? Sorry if I'm getting the wrong understanding here

 

no, redevelopment would be a developer buying the whole building and building a taller one.

 

Ah right - so does that mean don't buy an older unit in a large unit block?

 

A nice big 2 bedder in Ashfield would be where I'd place my bets.
Find a 8 unit block of 2 bedders, 100sqm++ Internal Area - walk up only with no lift.

Try get the North Facing Top Floor Unit (unrenovated) so you can add some value to it and off you go!

 

Thanks great advice! I think those ones will probably cost 700 - 750k from what I've seen but it does seem like the most logical buy! Cheers for the recommendation