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NSW if you got 800 k budget

Discussion in 'Where to Buy' started by samiam, 12th Jun, 2016.

  1. samiam

    samiam Well-Known Member

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    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
     
    Scott No Mates likes this.
  2. devank

    devank Look, lets just get on with this, ok? Premium Member

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    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.
     
    samiam likes this.
  3. Coota9

    Coota9 Well-Known Member Premium Member

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    I would buy 2 @400k in Melbourne.

    1 in outer North
    1 in outer West
     
    Last edited: 13th Jun, 2016
  4. Scott No Mates

    Scott No Mates Well-Known Member

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

    datto Well-Known Member

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    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.
     
  6. MTR

    MTR Well-Known Member Premium Member

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

    monalisa Well-Known Member Premium Member

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    @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.
     
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  8. HUGH72

    HUGH72 Well-Known Member

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

    melbournian Well-Known Member

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    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.
     
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  10. samiam

    samiam Well-Known Member

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    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...
     
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  11. MsAli

    MsAli Well-Known Member Premium Member

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

    samiam Well-Known Member

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

    devank Look, lets just get on with this, ok? Premium Member

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    Unlikely. How far are you planning to stretch??
     
  14. samiam

    samiam Well-Known Member

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

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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

    samiam Well-Known Member

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    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 :D
     
  17. wombat777

    wombat777 Well-Known Member Premium Member

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    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.
     
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  18. Desperado

    Desperado Member

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    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
     
  19. Observer

    Observer Well-Known Member

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    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%.
     
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  20. strongy1986

    strongy1986 Well-Known Member

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    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?
     
    Observer likes this.