NSW First Home Buyer - North West Sydney

Discussion in 'Where to Buy' started by Has98, 13th May, 2020.

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  1. Has98

    Has98 Member

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    Hi everyone,

    I hope everyone is keeping safe during these challenging times.

    I've recently discovered this forum and have decided to ask for some advice about where I should purchase my first property. I have been given a lot of conflicting recommendations about suburbs in North West Sydney, which has left me very confused.

    For some context, here are some of the considerations that I am making:
    • 4 Bedroom House/Town House
    • I'll be happy with a relatively small land size ~ 300sqm
    • My price range is around the $750k mark (although I may be able to stretch to $800k).
    • I'm looking at the Colebee / Marsden Park (Elara) suburbs as well as surrounding areas.
    • I work in the CBD (Town Hall)
    • I may consider moving overseas for work in around 5 years. If I do move, I will be selling the property.
    Basically, I was initially looking for H&L packages in Colebee as they are within my budget and most importantly, I have heard a lot of good things about Colebee (more specifically around the significant growth rate). Given point 6 above, I'm looking for suburbs with a very good growth rate so that I can get some benefit after selling it quickly.

    However, I heard from people, that in some cases, the builders may take 2 years to build the property. This has really turned me away from considering the H&L packages and I've decided to buy a completed home. Unfortunately, completed homes in Colebee are very expensive, leaving Marsden Park (Elara) a possible alternative.

    Here are some of my questions:
    1. How does the growth rate of Marsden Park (Elara) compare with that of Colebee? Is it worth buying in this area?
    2. Are there any other suburbs within NW Sydney that would be better to buy (considering that growth rate is crucial for me)?
    3. Are there any suburbs in Sydney (preferably relatively close to the CBD and within my budget) that would be recommended?
    Sorry for the long post, but I'm hoping someone can give some advice and give better clarity to the whole situation.

    Thanks in advance!
     
  2. Trainee

    Trainee Well-Known Member

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    Why do you think the growth will be good in an area with lots and lots of the same properties, the new supply coming on for years to come, on small land size way way out from the city?

    Heard good growth rates from who? Newbies who bought there? Or agents selling property there?

    Another option might be a house in western sydney. Old house, maximum land. If you say thats not where you want to live, thats fine but you are not really asking for recommendations. You want someone to agree with you buying new shiny stuff.

    why sell in 5 years unless you dont plan to come back?
     
    Last edited: 13th May, 2020
  3. Has98

    Has98 Member

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    Hi @Trainee, thanks for the prompt reply! :)

    You raise some good points and I will be happy to clarify:
    • My assumption of high growth rates is based on talking with agents, builders as well as locals who have been living in the area for 8+ years. I have also had a look at Realestate.com as well as the NSW Valuer General to get an idea of average growth over time. I believe that high growth also makes sense when you consider the close proximity to some great amenities (IKEA, Costco, Business Park etc.) However, would you have a differing opinion on this? There is definitely a chance that my findings are incorrect.
    • An old house with a lot of land in Western Sydney is definitely a possibility and I am open to alternatives to NW Sydney (as per question 3 above). Which specific suburbs would you recommend in Western Sydney (I might have a look to see if there any any new houses available)? Is there anywhere else in Sydney that you would recommend (maybe Merrylands)?
    • A great question, I will actually be selling because I do not plan to come back. I'll take the money from the selling the house (hopefully with some additional profit) and will invest it overseas.
    I would appreciate your thoughts on this.

    Thanks!
     
  4. Trainee

    Trainee Well-Known Member

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    If you only have 5 years and dont plan on coming back, you really want to buy? A new built house, like a new car, depreciates fastest in the first couple of years. In 5 years yours will compete against the newly built ones, and look old.

    Opinion only, believe what you want.
     
  5. Has98

    Has98 Member

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    That's a great point and something I will definitely consider. The reason I'm even considering buying is that there is a high chance I might not go (as it is an optional move) and continue to live in Australia.

    Taking this into account, what are your recommendations (based on the above questions)?
     
  6. Trainee

    Trainee Well-Known Member

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    Old (old) house in seven hills / blacktown, >600sqm if it was me.

    but this decision requires you to agree with certain things. Such as new h&l in new suburbs are generally terrible investments. Only thing worse would be otp highrise units.

    but, new stuff looks nice and shiny.
     
  7. Has98

    Has98 Member

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    Would you mind sharing why you think H&L packages are poor investments?

    What about buying land and then finding an independent builder to build the house? Is this method similar to a H&L package?
     
  8. Trainee

    Trainee Well-Known Member

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    Just search for it. High level. Lots of supply, lots of competition when selling, paying for the most expensive build and builders profit, all of which depreciates.
     
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  9. Gockie

    Gockie Unicycle - get exhausted but never two tired Premium Member

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    I'm not usually a fan of new estates for the reasons supplied by @Trainee, however Colebee / Marsden Park both seem to be reasonably well located. Places like Jordan Springs I'd think you'd be crazy.

    You will be trading off land size compared to established suburbs though and there's no guarantees of any profits/price increases in 5 years.

    At least with old house on big land you can knock the house down and rebuild. Depending on council rules you might even be able to put a duplex on it, like all the homes in Dundas Valley. On a small block of land you don't have that possibility.
     
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  10. Has98

    Has98 Member

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    Hi @Gockie, thanks for your input! :)

    Would you say that there is a significant difference between buying in Colebee and Marsden Park? Or are they similar?

    Are there any other suburbs that you would recommend (besides Seven Hills / Blacktown) where it would be easier to get a relatively large land size?

    Thanks!
     
  11. euro73

    euro73 Well-Known Member Business Member

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    If you need to commute to Town Hall, Merrylands will get you onto a direct train line. You can choose between Merrylands station, Parramatta station, Granville station, Westmead station etc.. Merrylands also gets you nearer to Parramatta, and all its existing and future infrastructure.

    Location wise, far superior. Nothing wrong with Marsden Park and Colbee... but they are small lots and the streets are extremely narrow and the Truman show effect is in full force... ie they are all same same

    BUT... and for some people this is a deal breaker, you get a shiny new house there. Closer in, you get a 50-60 year old house . That's the appeal of the new housing estates. New and (relatively ) inexpensive
     
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  12. Has98

    Has98 Member

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    Hi @euro73, thanks for your great insight!

    In summary, would you say that I would get more profit if I sell a Merrylands property after 5 years when compared to if I sell a Marsden Park property?
     
  13. Gockie

    Gockie Unicycle - get exhausted but never two tired Premium Member

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    Merrylands would be a safer bet imo.
     
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  14. bunkai

    bunkai Well-Known Member

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    Three hours a day of communiting is tough.
     
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  15. Has98

    Has98 Member

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    Hi @bunkai, yes I agree, it's definitely not easy. Any insight that you would like to provide? Are you familiar with the Marsden Park area?

    Thanks!
     
  16. Has98

    Has98 Member

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    @Gockie, thanks for that. I wanted to ask for your opinion. If you were in my place (taking note of the considerations in my first post), what area would you be more likely to consider (especially if you didn't want an extremely old house)? Thanks in advance.
     
  17. Gockie

    Gockie Unicycle - get exhausted but never two tired Premium Member

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    I'd prioritize access to transport and proximity to city. Colebee seems to be a touch closer in. I'd still preference Merrylands if the price if the same though, as long as it's a quiet street.
     
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  18. euro73

    euro73 Well-Known Member Business Member

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    I often spend hours online , trawling through Amazon, eBay , Alibaba and Facebook Marketplace, trying to find a pair of those goggles than can see the future... :) Unfortunately, I have never had any luck sourcing them.... so I would be guessing.

    But I would say this; Merrylands is extremely well located. Lot sizes are typically 650-700M2 , sometimes a little larger.. and proximity to Parramatta and M4 and multiple train lines is excellent. It does have it's better pockets ( the best locations are in the hilltop area) but the houses are older... they are smaller, fibro/clad homes and you may need to spend a decent sum to modernise/renovate ... it comes down to what you are willing to compromise on.

    If a 40 minute train ride each way is more appealing than a 90 minute commute each way, Merrylands beats Marsden Park. If shiny and new is more appealing than old , Marsden Park beats Merrylands. If you like shopping at Costco, Marsden Park also wins... although Auburn Costco is within 10 -15 minutes drive of Merrylands
     
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  19. Mumbai

    Mumbai Well-Known Member

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    I believe you are starting on the wrong foot. You are looking to buy a good PPOR which will be a good IP in 5 years. This is usually a bad combo.
    If you are sure you will be making it an IP (whether or not you go overseas) then I would be looking at factors that drive rentals and think practically about the yield, vacany rates, etc. If you are focusing on PPOR, its a more emotional and family decision.
     
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  20. Has98

    Has98 Member

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    Thanks @Gockie for your suggestion of Merrylands! It is something that I will be considering.

    @euro73, I've been trying to find those kind of goggles as well but no luck so far haha. I was curious as to what suburb you would consider buying in if you were in my place?