NSW if you got 800 k budget

where would you choose?
if you must buy either sydney or melbourne..
thanks for comments and advices
p.s. long term hold, for cg, in accumulation phase
budget could be stretched a bit more

 

That means, the servisabilty needs to be healthy. Yields aren't that flashy in that range.

If you must buy either sydney or melbourne then I would prefer Mel. Come to Sydney next time.

 

I would buy 2 @400k in Melbourne.

1 in outer North
1 in outer West

 

Should be able to get a reasonable older 2 bedroom flat needing a little work either Northside or inner east.

 

Two houses in the Druitt. Combined rent of 700 pw.

Mix in a couple bogan tenants. Stir gently and hold for ten years or at least before you turn completely grey lol.

 

no brainer, Melb is the best market in Australia today and moving forward has the best fundamentals for growth, numero Uno for immigration

 

@samiam

Parramatta region in Sydney - a well located block, close to train.

Though prefer 2 X $400k as mentioned above, due to a higher overall return $500 on one property vs $700-$800 on two properties. If one property is vacant, then part of the mortgage is covered still.

Having said this, the two scenarios are likely to result in different quality of properties.

 

I would have thought that 2x $400k places in Melbourne would make more sense currently if holding costs aren't a consideration.

 

yup if melbourne is your pick, this would be best way to go with the budget

1 in albion and 1 in thomastown or epping or glenroy etc.

 

thanks for all your replies..
@monalisa - I really like parra, had lived around the area, negative though is getting oversupply and rental is going to be soft for a while...
to me, sydney and melbourne are the safest bet in long term..
my thinking with sydney is that it will bounce back a bit with record low interest rate, and best is to get in before NG grandfathered (who knows)..
melbourne is still affordable to some extent compared to sydney especially in outer rings..
looks like melbourne is going to be the pick but have to look into that closely...

 

House vs Units? 800k should get you a house. Parramatta region has a number of suburbs.

 

mainly looking at houses...
also thinking whether to stretch a bit and get in inner west market

 

Unlikely. How far are you planning to stretch??

 

1-1.3 mil, that would be a bit uncomfortable level

 

For PPOR, no problem! If for IP only, not such a good idea imho, rental return would be terrible (2-3% at best).

 

true too. I know passive investing is not that favourable but if we hold it for 10 years or more, cg may around the corner again

 

Perhaps aim for two sites that have future development potential, ideally able to accomodate a number of townhouses/villas ( or unit block if the site and zoning will accomodate it ).

Hold them until you are ready to do something and sell with a DA or develop them yourself one at a time.

 

Hi guys, i'm looking in the same range as OP. Looking at 2x400 or so
However I will be a first home buyer, would the saving of $15 - 20k in stamp duty on a unit up to 550k in Sydney (as a owner occupier) outweigh an IP in Melbourne (which I think would be a better option)
Cheers

 

What kind of yield does an investor get in those areas?

I just checked Albion and it looks really poor for houses being around 2 to 3%.

 

Correct

Yields in melbourne are woeful

Suburbs that appear good value in the west such as ardeer, albion, laverton etc
Yiu can buy a house for $400k - $450k but only get $280 a week in rent
Doesnt really add up, maybe the demand isnt what the market perceives it to be?