Investment Dilemma - Maybe Campbelltown - Help

Novice property investor here looking for some advice here especially from some seasoned property investors.

I've been in a position to buy an investment property (house) for a year or so. I haven't done it as yet. I'm looking to spend about 500-650 on it.

My first plan last year was to buy something in the gold coast suburbs. Good infrastructure and growth potential but living in Sydney, caution took over and it didn't happen. I had an issue with buying interstate also and (didn't) don't have the confidence in this regard as I wouldn't be in a position to see the asset.

Since then I've moved my attention to Sydney and moreso, some of the better Campbelltown suburbs. Places like Blair Athol, Ambarvale, Mount Annan, Rosemeadow, St.Helens Park, etc. I'd have the ability to view these properties personally and then buy. There's also some decent infrastructure with hospitals, unis, malls.

But most views in this forum tend to say don't invest in Sydney. Does this view change if my plan is a long-term one? ie I'm not greatly concerned with short term gains, i'd like to hold this house long-term and pass on to my son in 15 years or so. Surely there'll be enough growth by then to warrant the investment.

I feel if I just keep sitting idle, there'll never be a right time. And my plan is to buy a few more over the next 15 years using equity but to do that, i'll need some growth obviously.

So looking for any views or comments to help me take some action. Tell me I'm being ridiculous not investing interstate. Whatever.

 

If you are looking long term(10+ years) in Western Sydney you will come out ahead. With the population growth and infrastructure projects happening at the moment.

The problem is how you want to structure your portfolio. You could purchase interstate short term and come back to Sydney when the prices have scaled back and be in a much better position financially.

What is holding you back from interstate investing?

 

Thanks mate. Yes I think what's holding me back is not being able to view the properties before purchasing if they're not in Sydney. I realise there's inspection reports and the like and I'm looking for very simple houses in good condition so that I could rent them. It's a mental thing.

Yes whilst I plan to hold the asset long term, I'm also hopeful of some equity growth in that investment in the next 5 years so that I can expand on the portfolio and buy some more. Reading about declining prices in Sydney has me fearing that it'll take years to recoup any decline, let alone get growth from my starting buying position which is the equity I need to purchase more IPs.

 

Hi @Juke007

Rental yields are low in Sydney, so if you are OK with negative cash flow, and have your property go side ways for a number of years, then Sydney is OK. Long term you will be OK.

Though if you want equity growth, you may not get that in Sydney.

Buying sight unseen is daunting, especially if it is your first investment property. A number of our clients have worked with local buyers agents who can view and negotiate the properties on their behalf, are provide feedback on the condition etc. This has worked well for them. So something to consider.