First property in Sydney - apartment in Surry hills or house in st Mary /mt druitt?

at your age with your (very high!) income, get the appartment, live there for 2-3 years, or more, enjoy sydney life, then refinance, move out and buy a house where u would live.

 

I still think the capital growth on land does better than for an apartment overall though long term. So, i'm wondering why you are recommending the apartment

 

i guess at this moment one can find relatively well priced appartments, and since u live there, with this high income u can pay off bit faster and not paying CG when u want to sell later. in 2-3 years can reassess. if u go straight to house out west, at this point bit risky i think if it stagnates and no growh?

overall ye i agree, land would appreciate faster.

 

You could rent the swishy highrise inner city place and buy houses.

 

You might not get any/much capital gain on the apartment as the growth is slower (more supply of apartments). I don’t know though, is there a waiver of stamp duty if a $1.1 mill apartment is bought by a FHB?

Long term CG purposes, I’d get the house.

 

Llama, I'd go for the house in Mt Druitt. With all that commuting I'd get a a good set of earphones and listen to some relaxing music.

It'll keep your mind off a few little things like will I get mugged at the station and will my television still be where it was in the morning lol. Nah just joking the Druitt ain't that bad these days.

Should be nice capital gains in Mt Druitt over the coming years with all the new infrastructure.

 

No growth? You've been on the wacky tobaccy with @datto

 

Behave yourself....it's not that bad anymore.

 

LOL no, but unlike appartments, houses increased a lot last 12 months. appartments didnt, many fell actually. if u hunt for a bargain - maybe can find smthng.

 

I was thinking that! Only thing is that I’d have to live in the house for the first six months to use the FHSS. My friend mentioned I could just leave it empty and claim I was living there, while living in an apartment. But no idea if this a risky move?

 

Forget the FHSS. With your income , a good savings rate and another 20 years, the FHSS is nothing.

 

Based on my google searches I think the value of the apartment and my income put me out of eligibility for a lot of FHB grants, except for the FHSS

 

This is an interesting take - I was thinking about contributing 3k for the next 10mths for the FHSS, and given my tax bracket this puts me ahead by about ~7k? Which I guess is not a big amount if my parents are going to help me with the deposit, and I save approx 4.5k per month

 

Ok. An idea. I'd still put the money into super (still get the tax benefits) but instead of withdrawing it to buy a home, I'd use it for a share portfolio.

Save for your property deposit outside of super. You have more flexibility this way.
Do your own due diligence / research / maths on it though.

 

90K with no leverage? Not gonna happen.

 

actually scrap my original comment. mt druit isnt as expensive as i thought - so deals can be found. here https://www.realestate.com.au/buy/p...=false&activeSort=list-date&source=refinement under 800k and u cant find good appartment for that price.

 

Cheaper again if you go the other side of the railway. https://www.realestate.com.au/buy/w...list-1?activeSort=price-asc&source=refinement

 

I learnt from experience that units in the Eastern suburbs (S/Hills, Elizabeth Bay, Kings X) hold their value because they those areas are already at max capacity - i.e. cannot be build up.
Unlike all those new off-the-plan buildings popping up next to, and smothering each other. This is what happened to me: bought off the plan 17 years ago in Chatswood - supposedly, excellent location and all amenities nearby, no park space needed. This unit hardly doubled in price when sold last year as a result of newer (huge) blocks recently being - and continuing to be - built.
We sold a much older Elizabeth Bay unit with water glimpses and shared laundry to help finance this Chatswood one - it had trippled in price in a few years (paid 125K, sold for 330K) now, it would be worth over $600K !
This tells me:
(1) lots to be said for "buy and hold" in these established areas - but look for good, solid buildings without gyms, pools and all the bits that make for expensive ongoing levies (like our Chatswood bldg had)
(2) do not buy off the plan
(3) don't be put off buying units where the rental returns are good and always will be in good, close-to-city areas

Regarding St Marys, this house looks good and fairly new, but ultimately, depends on who will pay the big rents. You'd need to research the rental market and vacancy rates. The house might be worth over a mill, but depends on the demographics.
Surry Hills has a lot of high flying, highly paid professionals.
St Marys no doubt has them too, but maybe less so?? Go back to demographics, jobs, etc.

Ultimately, I don't believe you'll ever go wrong with a S/Hills apartment, although again from experience - and as Morgs said above - rents softened as a result of Covid last year and tenants have been taking advantage of rent reductions in the building where they live, so competition has become more fierce and higher rents harder to achieve...

House land always will appreciate more than the smaller land lot in a unit, so... yeah... hard decision. But another lesson learnt: crunch the numbers!! no one has a crystal ball, but right now it's all about money in and out. A new house = less maintenance. For a unit, add up the levies, water and council rates, divide by 12 and that tells you how much on top of mortgage repayments it will cost, how much you can negative gear, etc.

Starting this early in life, whatever you, do time is on your side, so do the numbers, then even though they say 'don't bring emotion' into it, go with where you'd feel most comfortable as your first home. Whatever you choose, it will be yours! a great achievement

 

nasdaq etf yoy is more than 10% over 30vyears is 1.Xmas

12% is 2.5m

granted not every year are gains

based on today If u invest 90k in nasdaq etf 10 years ago it’s worth 600k

based on same trajectory 1.8m

u reckon my druit home gonna make him more than that?

repayment alone over 30 year will kill him

 

still mt druitt. Won’t turn into Surry hills over night

this assuming the airport is a success,

this is the internet no need to bet your net worth.

2 cents are more than enough.