NSW House in Campbelltown OR Unit in Campsie

Hi all,

Looking at purchasing our first investment property and with our budget of $600k, we have narrowed down our options to a house around the Campbelltown area vs a unit around the inner west area.

Any thoughts and opinions are much appreciated!

Thanks in advance!

 

Personally I would go with Campsie, very well located and a bit more growth to come in this pocket.

 

Google where is campbelltown and Google where is Campsie. They were miles apart geographically and socially.

They are close in the alphabet.

 

I would go for Campsie - older units if have to choose between 2. But there are other options if you look around

 

Thanks for the response so far. Definitely open to any other suggestions of any.

 

Neither. You're mad looking in invest in Sydney at the moment for buy and hold. Come back in 5 years.

 

Agree with @Biz

What's the reason for buying in Sydney? The rental yields are low, prices all time high....at peak (or close to?).

Have you considered elsewhere ?

 

We faced the similar options last year and we went for option 1, and are quite happy now with our choice. Apartments aren't bad but it would be much better if you could afford to buy from Canterbury and closer to the CBD. Campsie and SW farther suburbs seem to have lots of apartments and to our observation their sale has been slower than houses (with decent land sizes) in the Campbelltown area, which are also not too bad cashflow wise.

 

I rather put on hold as yields is low,

 

I guess simply put, Sydney is all we know since we live here. And I definitely agree that yields are low and prices are high, but I also figured it not about worrying about timing the market but rather focusing on time in the market.

I chose Campbelltown as it was one of the major suburbs with a train station and is still within my budget of 600k (could probably pick up a 3-1-1 house). I chose Campsie for a unit simply because I noticed that the surrounding suburbs (marrickville, canterbury etc) have 2-1-1 units at around the 700k mark whilst I found some in campsie (next suburb out) from 525k. Figure these were the best value I could get at the moment.

Other locations I had considered
- edmonson park/leppington house and land - with the view that the area should experience some decent growth in the coming years from the leppington train station and the leppington large shopping centre built. (But wasn't sure whether getting a new house and land would be a good idea in comparison to an established property)
- established houses macquarie fields, ingleburn, Minto.. cheap houses with a train station.
- neighbouring suburbs to Liverpool - Sadler, Heckenberg, green Valley etc simply because alot of development is going on in the Liverpool area and with the large amount of units there, I thought that getting a house would be better.

Any comments are definitely more than welcome and will be taken on board!

 

Really? I was working out the rental yields and Campbelltown's yield worked out lower than a unit in the inner west..

 

You're definitely right. However, I've also noticed that although closer to city is generally better, there have been cases where outer suburbs have grown faster due to developments that occur in the area. E.g. a friend was tossing up between buying a unit in marrickville vs a house in narellan in 2014. At the time, he had a budget of around 400k which could get him a 1 bedroom unit in marrickville or a 4 bedroom house on narellan. He ended up with the marrickville unit. Fast forward 3 years, his marrickville unit is worth about 500k (organic growth) whereas the narellan house is now worth around 650-700k (due to the developments going into that area - shopping centre extensions etc). Even places like oran park and Gregory Hills is going bonkers.

Although I'm are aware that we can never rely on past events to determine the future, but it definitely makes me more cautious knowing the possibilities..

 

In our

In our case we were looking at several 2bed apartments (old ones) in Canterbury. The prices then were around $600K to $650K and we knew the potential yield would probably not be greater than $450-$480 pw as we had been renting in this area. Then we went on to buy a 4-1-1 house near Campbelltown for $575,000, rented out for $450 / week. Our plan is to make it a 4-2-1, and we might add a granny as well depending on future rental demand in the area.

 

Thanks for your response! Great buy at 575k for a 4-1-1. Having trouble trying to find a decent 3-1-1 for sub 600k at the moment.. haha

 

How about Livepool/Sadleir/Heckenberg/Busby/Ashcroft? Lots of high rise going up in Liverpool. Got a great Westfields. Just did granny flat and Liverpool council don't charge for section 94 like other councils.

 

Personally I wouldn't touch either place now due to where they are on the property cycle. With 600k I'd be looking at a house with cosmetic renovation potential in a middle ring suburb in Brisbane or 2 older homes in good locations as close to the Adelaide CBD as the budget will allow. All comes back to your goals for investing. Assuming you want to build some wealth and asap as most people do, then you want the try to enter markets that may possibly have the best chance for growth and not markets which have already had substantial growth. The faster you are able to grow the equity the faster you can leverage it to keep growing (assuming you have the serviceability). Knowing a market will do well in say 10-15 years is not good enough. You need to try to get into markets that have the best potential for capital growth (assuming your just a Buy and Hold investor) as quick as possible so your not left waiting for many wasted years unable to grow.

Good luck.

 

There is some some solid advice here.

Don't buy in Sydney at this stage of the cycle. Over the next 5-8 years Brisbane is better poised to delivery growth.

Sure it's interstate and sure you need to get on a plane to get there. But advice is do what's right, not what's easier.

 

I think those suburbs you mentioned would definitely be better than Campbelltown, but can you still get a house on decent land size with GF potential for around 600-650k?

 

This is solid advice!

Thank you very much! Will definitely look into Brisbane now. Will head over to the brisbane thread to read through it now - but just in you opinion, with a budget of 600k, which suburbs should I be targeting to obtain a house with cosmetic renovation potential in the middle ring?

Thanks

 

Have a look at the map of Brisbane, and draw a circle at the 10km mark around the CBD and have a look at all the suburbs within the 10km zone you can afford for your budget. You may find better value in the southern suburbs. Look for an older house with good land content, 4 bedrooms is preferable. If it has cosmetic reno potential for the future then even better.

The option of engaging a good Brisbane BA who has a good understanding of what your trying to achieve with this purchase may also be an option if you feel you don't have the time for an interstate acquisition.