Hi all, I'm considering buying an older style apartment/townhouse around Five Dock/Concord, renovating it and living in it for some time before moving onto my next PPOR. I would want to ensure I'm adding value through renovations and also getting some capital growth. I just wondered what everyone's thoughts are on potential for CG in the Inner West in the next 12-24 months? Also, if anyone can recommend builders that they'd recommend for minor renovations (no structural changes likely, perhaps just removing a wall), that would be appreciated. Thanks
It is pretty competitive out there are the minute - half the battle is being able to buy at the right price. If you can do that and add value then I'd imagine you'll do well. Depends on the kind of work but I'm sure @Mel Morgan would be able to recommend a couple of trades in the area once you're ready.
Thanks Richard, yep buying well is always the challenge! What's your feeling re what the market will do in Inner West? It seems like houses and units in the area dropped around 10% earlier this year, but have stabilised for the last few months. From the interest levels I'm seeing, and market sentiment, it seems like buyers are jumping back in the market so it seems like it's going to pick back up. I know it won't have the levels of growth it's had in the past few years, but if I can manufacture some equity through renovation + see pricing levels get back to where they were (ie 10% growth) this wouldn't be a bad result.
Agree with your assessment - I've got a heap of clients who are struggling at the moment to land something because things are going for +10% more than they think it is worth. I'm not sure what is on the horizon that'll change the current sentiment, but to be fair I didn't really expect the sentiment to change so quickly when it dropped either.
Are you planning in cashing out in 2 years? If so, I'd have a backup plan to hold which also means you need the serviceability for your future PPOR maybe
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