IP in Sydney Unit vs House

Discussion in 'What to buy' started by viba, 10th Oct, 2019.

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  1. viba

    viba New Member

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    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
     
  2. Trainee

    Trainee Well-Known Member

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    Which suburbs are you thinking?
     
  3. viba

    viba New Member

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    500k - Looking at Parra, Westmead, etc - 2bdr
    700k - Schofields, Quakers hill, Blacktown areas - but a bit too away from public transport
     
  4. Propertunity

    Propertunity Well-Known Member

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    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.
     
    Morgs likes this.
  5. viba

    viba New Member

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    Oh ok, thanks Alan. I'll keep an eye out.
     
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  6. Trainee

    Trainee Well-Known Member

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    You mean it will be far from a station, or you think the train journey will take a long time?
     
  7. Morgs

    Morgs Well-Known Member Business Member

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    Sound advice I would think!
     
    Propertunity likes this.
  8. viba

    viba New Member

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    I meant far from train station, so probably wont be attractive for renters
     
  9. Sackie

    Sackie Well-Known Member

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    I have IPs in those areas and I've never had any major problems getting tenants due to any transport issues.
     
  10. Scott No Mates

    Scott No Mates Well-Known Member

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    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.
     
  11. John_BridgeToBricks

    John_BridgeToBricks Buyer's Agent Business Member

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    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.
     
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  12. sash

    sash Well-Known Member

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    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

     
    Mumbai likes this.
  13. The_good_life

    The_good_life Well-Known Member

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    What are people's thoughts on Seven Hills? A few in the price bracket on decent land (Older style houses of course).