NSW Crunch time - decision on potential PPOR?

Discussion in 'Where to Buy' started by filipe, 13th Feb, 2017.

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  1. filipe

    filipe Well-Known Member

    Joined:
    3rd Oct, 2016
    Posts:
    78
    Location:
    Sydney
    I have been hunting for a PPOR for quite a while, and finally found one that ticks majority of the boxes. I have come to the realisation that on your first home in Sydney...you can't have everything that you want (unless you live in the sticks!)......trying to talk through this decision out loud to get some input.

    This is a slightly dodgy suburb (Greenacre) - in the past it has had crime issues, drugs, the demographic is not the greatest. BUT, it is close to where I need to be (work and kids school), about half the distance from the next comparable suburb so this will save a lot of my commute times.

    Pros:
    • Nice quality house, all the renovations done, can move in and not spend much.
    • The next suburb over has prices well above the median of this one, so it could get a 'ripple effect' (maybe), it's bounded by Belmore/Belfield/Campsie/Strathfield to the north etc..
    • Has everything I need (ticks all the boxes internally)

    Cons:
    • It appears on the flood map as being affected by 'overland flooding', 15% of the block (to the rear) is affected at 0.1m height 1 in 100 years. The ground slopes down a hill towards a creek which is about 1km away. I expect the house dwelling itself would never flood and this selection by council on the flood maps of this block is more a pain/annoyance than anything serious, but it does play on my mind. I do plan to build a granny flat years later, and under current rules I couldn't use the SEPP and need a DA (added unknown risk, time, money, requirements from council). The GF build is not #1 requirement on my list however a 'nice to have'.
    • Pretty close to some General Industrial zoned large blocks and industrial buildings - no smells, trucks etc noise, its in a dead end street, but its nearby.
    • Slightly dodgy area - bit of graffiti, nothing major I have witnessed (Have been to investigate at least 12 times).
    • It's got some unapproved pergolas (not a big deal but they breach the CDC so someone could potentially ask to demolish), I would plan to remove them anyway in a few years. Only cheap metal pergolas, been there for 3 years no one has complained so far.
    • 20 minutes walk to the station - bit far for my liking but added benefit is further away you get less riff raff... ability to get a bus then train or drive to station exists..
    Out of my 4x major cons, nothing is really a show stopper for me. I can live with the last 3, the flood thing has me unknown whether I want to develop/extend/etc or sell, it could be a pain...? It is one of the only remaining suburbs with stuff under a $1m mark, unless I go further out.
     
  2. Blue Cat

    Blue Cat Member

    Joined:
    28th May, 2016
    Posts:
    24
    Location:
    Sydney
    I've also been looking at purchasing an IP in Greenacre as it seems to offer good value for money compared to neighbouring suburbs like Strathfield, double the price or more for a similar house there. But it's impossible to find another suburb under 20km from the CBD for the same money.
    My concern is the stigma and reputation of the area and the tenants it will attract. Another negative is the number of duplexes recently built in the area, 80% of the property for sale in Greenacre are half houses!
    Flood or bush fire prone zones should not be an issue in Sydney.
    You may want to check out nearby Regents Park and Berala. Quieter, more peaceful streets but a bit further west.
     
  3. Phase2

    Phase2 Well-Known Member

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    14th Jul, 2016
    Posts:
    1,289
    Location:
    Perth
    Why do you want to buy a PPOR now? FOMO or lack of stability in renting? I'm not presuming anything, just curious. I haven't been to Sydney for about 10 years.

    Is your work always going to be close to your PPOR? What if you change jobs and end up having to travel further, or worse take the train which is a 20min walk (or 5min bike ride).
     
  4. Lacrim

    Lacrim Well-Known Member

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    25th Jul, 2015
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    6,175
    Location:
    Australia

    If it were me, I'd hold off buying in Sydney atm (and certainly not in Greenacre for the reasons mentioned), and continue to rent in your suburb of choice.
     
  5. Gockie

    Gockie Life is good ☺️ Premium Member

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    18th Jun, 2015
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    Location:
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    I've got an IP in Greenacre since 2010 and for the last 3-4 odd years I've had absolutely great tenants. Quiet and lovely people, always pay on time, keep the place clean and tidy. If i'm ever there for maintenance they will make you feel at home. So don't worry on the tenant front.
     
    Marg4000 likes this.
  6. filipe

    filipe Well-Known Member

    Joined:
    3rd Oct, 2016
    Posts:
    78
    Location:
    Sydney
    I want to buy a PPOR now because I am sick of renting and I can finally afford it :)

    Will always be congregating around these areas for work, for at least the next 6-10 years due to kid schooling.

    Ah decisions..I don't know how far out I should go -vs- pay more and stay closer.
     
  7. CK_Invest

    CK_Invest Well-Known Member

    Joined:
    4th Apr, 2016
    Posts:
    212
    Location:
    Sydney
    Sounds like you already know the pros/cons for the property.

    Just know right now you're buying at a peak, but if you can afford the repayments and don't mind the cons, go for it

    Can I suggest you go there maybe at night time and see how it feels (as you have kids)? From what I recall it was pretty sketchy but this is 10+ years ago, it could have cleaned up much more since then.