NSW First home owner- Advice

Discussion in 'Where to Buy' started by Mike198811, 11th Aug, 2021.

Join Australia's most dynamic and respected property investment community
  1. Mike198811

    Mike198811 New Member

    Joined:
    11th Aug, 2021
    Posts:
    1
    Location:
    Sydney
    Looking to purchase my first property (1 bed unit) new / off the plan.
    Current options are Miranda , Kogarah and Licombe.
    My budget is $600k to avail of the current grants and my plan is to move out after 6-12 months, then rentvest and move back to the city.
    Thoughts and suggestions appreciated.
    Suburb growth and rental demand are key.
    Thanks
     
  2. Trainee

    Trainee Well-Known Member

    Joined:
    24th May, 2017
    Posts:
    7,030
    Location:
    Australia
    Imho, off the plan one bed units are about the worst property type you can get. No land content, no redevelopment value, overpaying for new, limited rental demand and living in it first means you dont get all the depreciation deductions.

    Save more, forget the grants and get an older 2 bed unit instead.

    personal opinion only.
     
    Branden likes this.
  3. Kevbo

    Kevbo Well-Known Member

    Joined:
    13th Feb, 2021
    Posts:
    194
    Location:
    Sydney
    x2. Buying an off the plan 1 bedder is possibly the worst investment you could ever make at this juncture, especially in the suburbs you have mentioned (where there are already plenty of apartments).

    With your budget you should get an old 2 bedder apartment in the $5xxk range and then spend a bit of money to renovate.

    Of course a different consideration if you prefer to live in a new apartment (akin to buying a brand new car).
     
  4. Branden

    Branden Well-Known Member Business Member

    Joined:
    12th Aug, 2018
    Posts:
    240
    Location:
    Blacktown, NSW
    As mentioned previously, if you are looking for growth I would avoid off-the-plan purchases. You end up paying a premium for the construction cost, materials, and developers' margins. You would be better served to focus on an established property in a high-demand area.