NSW Buying and selling in Sydney

1. Have you ever sold a house in one part of Sydney and then bought in another part and made really good capital growth quite quickly ?

2. Do you think that some parts of Sydney will pull away from other parts of Sydney value wise or do you think the gap is already substantial enough to be done and dusted or is it more likely that areas equal out in growth terms? Are there areas that may come back in value because people over paid and now they are having repayment problems ?

I haven’t done enough property research in Sydney but I remember in an episode of the Property Couch with Bryce and Ben and they did a comparison with one suburb closer to the city with a period home and compared it to one in a green field area of outer Melbourne. In the early days the difference in values seemed quite minimal but over 20 years or so the inner city suburb grew at 8 percent per annum so by the end of the 20 year period the gap
between the two suburbs became quite substantial.

On the other hand maybe as different things happen in Sydney may change people’s view of where they would like to live in Sydney. Certainly due to Covid people looked for more outer suburbs with more land and privacy.

You also can’t ignore that many parts of Sydney are just way out of reach now to even consider but what about this comparison - Would you rather buy and live in the Hills District ( Eg Dural )or Sutherland Shire ( Caringbah South) - which area has more potential and which has the better lifestyle ? And another outer suburb comparison - would you rather by way down south Engadine or way out west, say Nth Richmond for argument sake ?

 

depends what u mean by "quickly". our redfern appartment went ~ 50% in 5 years. the current ppor (house) did same in 3 years (since covid end of 2020). over next decade, inner south west will outperform north in % wise (in my view). and if u get old house on large block in the west, u likely to be in running as well.

Caringbah is heaps better than dural. dural and hills is basically family oriented, green only weekend in park with kids vibe. sutherland still has good vibe, beach and t4 direct to city in 30 min. potenital though - hard to say. shire is not cheap but dural and surrounding is pricy too because of the schools. so i would focus on lifestyle

 

Why would you sell in Sydney? Pay CGT and buy what?
I have investment properties in Western Sydney Blacktown and Penrith councils. One of my Blacktown property has 3x’ed since 2013. Rents went through the roof. Penrith is close but generally lags Blacktown. Expecting 2x from here in another ten years.
Everyone should just buy and hold in Sydney.

 

i think it really depends on what u bought and overall strategy. so i guess you bought houses and over time was able to extract equity to buy more/refinance etc. but some may want to sell to get ppor. some bought the wrong asett. some bought at the peak, and growth is slower and other opportunities present better %. some just stuck with borrowing cap. so selling sometimes can happen.

 

True- but buying and then selling is expensive. CGT , stamp duty and agent fees- killing your overall gains. And the amount of time you spend on researching and inspecting the property. That’s why I believe you just buy and hold until you retire/ need the money to get out of the game.

 

I've being looking at Sutherland Shire area and specifically the peninsulas such as Burraneer and Caringbah South. The area's natural quality is fantastic. The amenities are great too.

It's just not really that cheap anymore and if I think about what has driven the north west Sydney property price. It's to do with ethnic young professional families moving out that way. I don't see that happening in Sutherland Shire to a level where the prices explode like Hills.

Value wise, you can get a wonderful block of land with a nice house in Caringbah ($2m, 4/2/2 on 700-800m2) vs half the house and less quality finish internally in the Hills ($2m, 3/2/1 on circa 600m2)

I recall @Big A was doing some developments here and may give better insight to possible capital growth.

 

Don’t personally live in the area and closest I got when I was in Sydney, is the time we spent living in Lugarno. My close friend and business partner lives in Cronulla and loves it.
Not sure which will do better in the future but from a development point of view the money is in the higher end of town. Example Caringbah vs Caringbah south. Lots of development in Caringbah and a new duplex can be had for high ones to low $2s depending on finish. Head into Caringbah south and away from the main arterial road and the same duplex will go for mid to high $2s and not as much stock to compete with. Same applies to Cronulla. Big difference between Cronulla ,north of the kingsway being close to Woolooware and Cronulla south of the kingsway. A duplex from the north side to the south side could have a sale difference in price of $1m. The land to develop between the north and south locations will also vary significantly but build cost not so much. The finishes when selling in the mid to high $3s will need to be up specced somewhat but the finish sale price will make it more than worth while.

Outside of development I would say the same principles apply. The more desirable and tightly held locations will always demand a premium. The peninsula’s in the shire are premium spots and they ain’t making any more of them. You want to get in you need to pay the price if entry. As the population grows so will that price of entry.

 

Well, what I will have to do is to do some research of all the cities, from say a historical view and see how growth levels compared.
Sydney is a large area and it does have a segmented aspect to it and I’m looking to see whether there is a disparity or unequal-ness of growth figures between different districts and maybe down to a more granular level and how that may continue or change in the future.

 

There are lots of moving parts. First “A rising tide lifts all boats “ . Once one area moves then buyers that are priced out moves to the next closest and to the next after that. Cheapest areas, main roads, corner blocks, sloppy land , old really bad houses are more volatile. But if one can buy at the bottom and sell at the top when everyone is FOMOing then you can gain maximum %!of gains. But anyone chasing to buy at where prices are going up and selling in Sydney is playing foolish games. Just have to wait for the suburb to come next in line for the growth.