Hi all, I'm a newbie, quite late to the market (late 30s - various reasons). I would like start with an investment property. Will be buying my PPOR in about 2-3 years as my job requires me to travel around Tossing between, 500k for a unit - safe yield , popular suburbs, near train line etc. There are quite few in the West, but with new apartments coming up, not sure if the price will hold in the long run. or a 700k house for CG but far-away and possibility of difficulties in renting out. Looking to hold for atleast 5+ years. Not sure if it is good to wait for a few months ? Any thoughts? thanks viba
500k - Looking at Parra, Westmead, etc - 2bdr 700k - Schofields, Quakers hill, Blacktown areas - but a bit too away from public transport
Firstly, I'd choose the house on land over the unit - as they typically have better CG. Secondly, for $700K in the suburbs you have there - you should be able to get closer to the train line or bus service.
I have IPs in those areas and I've never had any major problems getting tenants due to any transport issues.
Then what? Property is not a short-term play, if it appreciates, you may consider refinancing/drawing down on the loan to redeploy funds as the cost to liquidate and reenter the market are substantial.
I may be a bit of a contrarian on this one, but I have always been of the opinion that "not all land is created equal". Yes, detached houses are typically preferable, however if you buy the right sort of apartment (low rise, older, great location to work and amenities), I think Paramatta / Westmead might be better options. Remember, you are looking for value, rather than "cheap chasing". Paramatta does fluctuate more than most suburbs because the supply changes a lot, but it is still Sydney's second CBD. Just something to think about.
Lok for "ethnic" suburbs in the West near rail. Parramatta and Bankstown areas are great for this....so long as you stick to older units. Avoid places like Schofields.and Hills...where there are too many for rent. Ryde/Olympic park is also a no go for new units
What are people's thoughts on Seven Hills? A few in the price bracket on decent land (Older style houses of course).