NSW First home buyer - thoughts on Box hill NSW

Hey guys

Fairly new to property chat but have been lurking the forums for a while.

Looking for some advice & thoughts going into my first home purchase with plans to buy another property as a IP the next couple years.

Firstly a bit about myself, im a FHB so looking to take advantage of what grants ans schemes are available to me. in order to do this my first property has to be a PPOR & certain price caps. I work in the hills district hence looking at the NW region of Sydney.

Land and build in question is as follows

Location - Box hill, Saratoga rise NSW

Land size- 285m2
Land is a corner block with flat land
Land is also registered ready to build
I know its very small but given my price caps to get the grants and being in NW sydney looks like what i will be able get with my budget

Land price - $369k

Build- 2 story house 4/2.5/1
Good inclusions

Build price - $289k

Total cost of land and build - $658k + discounted stamp duty due to being FHB about $3500 + legal fees

would love some thoughts and opinions from you guys on if this is a good purchase or not, and if this purchase is a good start to help buy further IP's in the future.

From what iv have seen and researched in terms of recent purchases/sales and infrastructure going up it might have some equity to help future purchases once built.

Any help or advice on this journey is much appreciated.

cheers guys

 

Long term an old house in seven hills will probably have better gains. More land, at least.

you just want new and shiny. Small land with max value in the building in a new area with lots of supply isnt a recipe for gains.

 

Appreciate your thoughts and definitely see your point in seven hills which i did consider at one stage.

After having another look there is literally only 3-4 houses with 3+ bedrooms under 700k 2 of them being townhouses

all through there was this for $750k with quiet a large block

10 Radley Road, Seven Hills, NSW 2147

Regards

 

Try to independently select a builder if you can.

Don’t take too much notice of “free inclusions” or other deals that builders run. Just focus on the price of the end product.

Do your careful due diligence on builders. You want to satisfy yourself they will build a quality product in an acceptable time and not go out of business during the build.

The meat rendering plant Burns Pet Foods sometimes really stinks. I used to cycle past it regularly.

It gets really cold in winter and really hot in summer in this area ( I live in rouse hill ). Consider in terms of ventilation, heating/cooling, suitability of design / fit out.

 

A little further west is doable for mid 600 for a 3 bed house.

Be honest tho. Are you choosing a new build in box hill because you really think it has the best chance of gains for that budget, or you want to live in a new house?

 

Appreciate your thoughts and feed back wombat, you have some very valid points to consider

Builders im thinking about going with are Meridian homes.

they estimated 24 weeks from start of build with land already being registered with having to pay liquidated damaged as part of contract if the build exceeds 40 weeks.

Regards

 

To be honest Trainee abit of both, the benefit of living in a new home that is close to work.

and also i could be very wrong as im fairly new to this but i feel there could be decent capital growth in box hill in the next 5+ years following suit of surrounding hills district suburbs with the infrastructure going up eg. shopping centres, schools & hospital going up across from rouse hill town center. i do however agree seven hills does look better for quicker captial growth.

Appreciate your thoughts

 

I personally would not recommend parking your money at Box Hill. Like Trainee had stated earlier, Seven Hills is more likely grow in terms of capital growth. To maximize your ability to obtain capital growth, Jembuss you should aim for areas which have high demand and low supply. Seven Hills, unlike Box Hill, beautifully checks these boxes.

Now there are two key factors in order to have high capital growth in any given area or suburb, you need 1; Scarcity of land, or stock, and 2; demand by the right demographics. My issue with Box Hill is that there is an excess of land which developers have kept as ransom for future years. They can choose whether to release this stock of land whenever, at whatever amounts. Since we Australians have a strong connection to home-ownership. Unlike "mom-and-dad" investors, vendors have no emotional connection with the land; their main objective is to get it on the market as soon as possible. And to get it sold as possible, they often make it cheaper to attract new home buyers, etc, or they release stock at large amounts, this correspondingly either saturates/devalues the rest of the suburb's property value, effectively leading investors to walk away with nothing.

I think you should avoid Box Hill as a whole; Seven Hills definitely sounds like the better option. Good luck out there!

 

What trainee said... I'd look for something with a bigger land component further out west.

 

Thanks for your detailed responses guys, your wisdom is much appreciated. iv got a lot to think about.

cheers

 

Seven hills if possible for sure, bit of a renovator, learn some new skills updating it and upgrade in a few years time

that nice new house is so tempting but 100% more Land and closer to the city will give you more equity in the short term to expand 90% of the time

if you want to live in a new house, for me you would need to accept from a probability point of view you will get less equity over the next decade then seven hills

 

That is a pretty good price. I do a lot of H&L...and you are on the right track.

I reckon Box Hill over the longer term has potential. Ignore the usual facebook crowd BAs and Mortgage Brokers. They have no idea and are empty vessels. Be careful where you buy on Seven Hills still some very rough pockets. Boxhill has a lot of young families and over time the facilities will get better.

The only advise i can give is:

1. Buy as close to Windsor Road as possible..as transport is key and getting around traffic. The transport there is still immature..but will improve over time

2. Shop around for builders.

3. If you can fit a Double garage you improve value even further. I would even lose 1 brm for this.

4. Get a mortgage broker who understands construction loans...most do not do them well.

5. People telling you that Seven Hill will have better CG..is just on paper. The real issue will be maintenance. When you factor this in...Box Hill could perform better. Too many amateurs giving poor advise or people with vested interests.

Good luck!

 

Thanks sash really appreciate your thoughts & advice, iv seen quiet a few post from yourself and acknowledge your experience. so means alot. i was a little worried i had screwed up but will now step back and look at the bigger picture, i think your right.

cheers

 

It depands what you want really, I've bought both h&l on s block and older house on bigger blocks. While most of the time what many had said above will be correct as bigger land give you more flexibility. But one problem is if you bought a decent land with an old run down house in an older suburb at a cheap price, you either buy near a lot of housing commission, next to high voltage power line, or next to an extremely noisy busy road. If that's the case you actually gain much more by buying a new build h&l becuase at least your neighbours won't be too bad as you eliminate housing commission first. Sometimes bigger lands doesn't always means better value. Look at all the larger blocks around blacktown and Marayong, even lalor Park and some parts of seven hills. They have came down so much and is now barely moving unless you do a complete reno.

 

Spot on. Too many people do not understand the fundamentals....lots of people chasing large blocks of land to develop. When in fact smaller blocks can yield more via simple knock down rebuild.

Some reAl idiots on here perpetuating rubbish via their face book sites. All they want is gullible newbies...

 

There are some good examples in Rouse Hill. Rouse Hill was the limit of suburbia along Windsor Road in 2002. The land estate in this older part was first up for sale and being developed late 90's.

This property was built in 2000 or 2001 and sold for $333k in 2002 and most recently sold in October 2016 for $860k (admittedly close to peak). That's CAGR of 7% pa over 14 years. There would be similar examples in this part of Rouse Hill ( note - this house is a torrens title even though it is a terrace/town home ).

Property Report for 22 Mcguirk Way, Rouse Hill NSW 2155

Incidentally, similar property recently sold for $840k so market for these homes is back to peak ( Property Report for 23 Thomas Francis Way, Rouse Hill NSW 2155 ).

The Outer Sydney Orbital will be a massive change ...

 

Yep...infrastructure s what grows the value of property. But you must build the product at a good price. This is what I have been doing mostly in Melbourne/Geelong successfully.

What people do not consider is the old house can cost a lot in maintenance...typically their yield is not as good. Furthermore buying in a lower socio area...you have at least a 20% probability here will be tenant damage..sure you have insurance but in my experience you are left out of pocket...the other is headaches..of managing these when you could be concentrating on growing your portfolio...

 

Great stuff guys!

Love your thought processes & logic behind your answers, loads of information to work with.

Really appreciate your time especially @sash & @wombat777 youve both been a great help

 

No worries...just avoid the people with vested interests.

 

Hi, a big query and any help would be highly appreciated. We have purchased a house and land package in Schofields - We purchased the land 394,000 for and building construction price for $354,840. While lodging FHOG, our lender advised that while our bank had evaluated the land, the price value increased it by 6000 back during loan approval. Now, while filing for FHOG, this will be an issue. Has anyone faced this problem as we have only paid 748,840. We paid deposit on our land on 22/10/2018 and paid for the construction deposit on 12th December 2018.
Please any help will be appreciated on this