House Thornleigh vs Townhouse Dee Why

Discussion in 'What to buy' started by CapitalFlight, 16th Jul, 2021.

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  1. CapitalFlight

    CapitalFlight Member

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    Interested in anyones opinion on the medium term (say 5 to 10 years) prospects of a 3 bedroom house in Thornleigh 2120 vs a 2 bedroom townhouse in Dee Why 2099 in terms of value growth, and assuming both are around a similar price today.

    Thornleigh is a nice quiet area, good place to raise a family, but boring as bat poop if youre in your 20s/30s. Dee Why on the other hand has plenty going for it despite still maybe shaking off its "penriff of the beaches" moniker.

    In theory would a house in Thornleigh tend to appreciate better over time, or would the location of a townhouse in Dee Why help to drive a similar value? Add two future kids into the mix and it feels like Thornleigh is the more sensible decision for the medium term, although Dee Why could work if you put the two kids in a bunk bed, it would just be more busy.

    What is your view? Go the safer sensible option or go for a bit more lifestyle? It's a purely subjective question so interested in what people think
     
  2. Gockie

    Gockie Life is good ☺️ Premium Member

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    I own/have owned apartments, a townhouse and houses. All in capital cities. The houses have done the best capital growth wise. And I've watched other apartments and townhouses too and the capital growth on townhouses and apartments have taken a backseat to the capital growth on the houses if you look at the long term.

    If you are going to buy the townhouse in this instance, I suggest go for ones that are "house like", no shared walls and a large and well orientated house-like garden, really well situated to transport or something else (hospital, major shops, beach etc), and with 3 bedrooms, not 2.

    But really, Thornleigh is a great area, easy access to go north to Central Coast or Newcastle and escape Sydney, a very good train line, the schools (public and private) in the general area are good, Pennant Hills Rd takes no trucks now unless there's an issue with North Connex...

    There's also a studio to learn to pole dance in Thornleigh, a sports venue for community participation sports including basketball, volleyball, badminton etc and a golf driving range, a Bunnings for your hardware needs, an Aldi, a Woolworths, great local places to go mountain biking (Westleigh and Hornsby), and mountain biking happens to be completely free, thanks to Council for the space...

    If you still think its boring, you can buy a house in Thornleigh, move in and establish it as your PPOR, move out and rent it out for up to 6 years, (and live somewhere more exciting), then move back in. Any capital gain is still yours tax free :).
     
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  3. scientist

    scientist Well-Known Member

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    Definitely the thornleigh house
     
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  4. spludgey

    spludgey Well-Known Member

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    What they said (I used to live there).

    3:0 Thornleigh so far.
     
  5. scientist

    scientist Well-Known Member

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    yeah wow is this really true? a 3br freestanding thornleigh house costs around the same as a 2br dee why unit? this is some serious mispricing here then. Unless the house is on two main roads or something...
     
  6. bythebay

    bythebay Well-Known Member

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    I make below assumptions when I read your description
    - House is probably below suburb average eg lower specs (original unrenovated or 1 less room or smaller land), or buyer objections like what @scientist said on a main road
    - TH is newish

    Based on these assumptions I would pick the house unless there are very strong buyer objections that cannot be changed
    if the house is under spec’d, you can renovate and uplift to suburb average or above, add value and create more equity
    The newish TH will depreciate more quickly and no scope to add value

    Try to hold for at least one full property cycle if possible for maximum growth, Sydney average is probably around 7years. You may get lucky and can see the house double in 6, definitely by 10 years.
     
  7. skater

    skater Well-Known Member

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    I'd also go for the house, especially if you're planning on having kids. Thornleigh is a nice area.
     
  8. CapitalFlight

    CapitalFlight Member

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    Thanks everyone for your thoughts. We were unfortunately outbid at the thornleigh house and decided not to go for the deewhy townhouse after inspecting.


    Re pricing - both were price guide 1.2. to 1.3. The Thornleigh house went for 1.52, and the Dee Why THouse for 1.33.


    Price guides in the Northern suburbs have been frustratingly incorrect recently, although at the same time you can just add +$200k and they're all pretty accurate!
     

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