Buying our 2nd property in NSW and additional questions.

Hi, all:

We had bought our first Unit in Carnegie, VIC in 2017 and have now decided to move back to Sydney in 12 to 15 months. We don't want to rent (just our preference) so we thought of going for a H&L package in north west Sydney as we have friends and family there.

The only areas that seem to be in extended our budget of $800k are Riverstone and Box Hill. We are looking for 4/5-2/3-1 house.

My questions to the group are:
1. Which is a better suburb? Riverstone or Box Hill? Apologies if this has been asked before. Please point me to the thread.
2. Should we go for something ready or H&L package? I am worried about the loss of income during the period when the house is being built. But the houses which are ready are heavily priced. So I guess this should even out.
3. Can we use a part of the house to set up a veterinary clinic?
4. Since we have young kids, we also want to land up in the right school zone e.g. Ponds so even if our house is ready, we will plan to rent it out for the first couple of years before moving in. What is the estimated rental income in Riverstone/Box Hill? Will it cover my repayments?
5. Since the house that we are building will be rented out first couple of years - what are the costs that we can minimise to build it? E.g. the structure is permanent, but can we reduce expenses on appliances and landscaping etc?

Thanks a lot in advance.

 

not following the timeline.
You obviously want new. Why buy new and then rent it out for a few years and then move into a not new place? Why not wait until you are actually in Sydney?

 

The prices seem to be uncontrollable. I am not sure if I can afford the same size house in the same area after 2 years. Plus buying early will help in capital appreciation.

 

It's a pretty dangerous assumption that property will definitely go up in that amount of time.

 

You are betting on property appreciating faster than how much the building will depreciate in two years. And do the build without being here.

 

May be I am missing something, but doesn't the value of the property go up once the house is built as part of the H&L package?

 

1) Would you pay more or less for a 2 year old house compared to a brand new house? Assume same builder, design, everything.

2) Same question but with 18 and 20 year old houses.

 

I would pay more for a new house 2 years later, but if I book some land in a H&L package today, the house would be ready in 2 years and it would be new.

 

Both Riverstone and box hill are good suburbs for first home buyers ..but in your case you want to rent it out and then come here later ....from a rental perspective it’s not that great...have you explored on how much is the vacancy rate for these suburbs? Instead you could consider buying an old established property for your budget in a suburb like quakers hill and you could rent it out without much difficulty.

 

Renting wise.. you will lose money but then again you r buying for the future so it makes sense.