NSW Kellyville opinion for PPoR and later on IP

People,

I'd like to know which one is the better lot to buy here for PPoR and then when the Northwest rail is fully build convert it into Investment Property ?

This lot is in Withers Road, Kellyville. It is rather expensive because it is the best lot that is save for the last according to the developer. Considering the median house price in Sydney this month is slightly above $1m so this is well within the median or even better looking at the number of the room it has.



I got this golden opportunity to select the few remaining lots that is available for me before it is snapped up by other people.

Any kind of commentary and assistance would be greatly appreciated.

Thanks.

 

For PPOR absolutely, but for IP I think you are putting too much emotions into it.

For the same price range there are so much more options, for similar home and land package you are looking to compete with The Ponds and Rouse Hill and they all going to have their own Station as well.

You should never mix PPOR and IP together...either one or another.

 

Agree 100%.

Work out if it is to be an IP or PPOR and do your research / make the decision on that basis.

 

Yaaawwwnnnnnnn......streeetccchhhhhh......

 

@sash at least I'm not buying the 2 bedders apartment in Parramatta for the same amount of money .

@sumterrence and @Chilliblue yes I've been wondering myself between a house with land component but far from CBD or apartment lifestyle but no land components.

But yes, do you think it is too expensive for that price this month?

 

If IP, what's the holding costs? Can you hold and how long can you hold? What's the net yield after tax deductions? What's the likely CG? What's your exit strategy? These are the questions I ask myself.

 

Budget yourself with the worse case scenario and if it still work out fine than no reason why you shouldn't buy as an IP.

As for PPOR, whatever makes you happy just buy it because there will be an emotional attachment, IPs are nothing more than money making tools which you shouldn't have any emotional feelings over.

 

Why not just buy an existing house? What's the land size? the area is very overpriced at the moment...

 

Only you can answer that question @Tekoz as you know your financial situation and your strategy.

IP's need to be run like a business and PPOR can be more of an emotional buy.

 

1.1mil to 1.2mil for a lot that size, that far from the city? Not for me thanks!
The hills seem very overpriced IMO, for an area that is good but not much convenient IMO. It is far from the city - have you tried the commute in the morning or evening? Of course it depends on your circumstances.
Also I don't believe in "golden opportunities" offered by developers!

 

I have friends who bought in baulkham.Hills Kellyville etc as far back as 2003 and they complain about transport to city. Overpriced.

 

My friend bought a 2 bed standalone house in Baulkham hills back in 2013 and only lived there for merely a year and now renting a unit in Parra, the commute is too bad for him.

The rental income is not that great either being a 2 bedroom house is only attracting 450/wk, and he paid I think around $780k for it.....

 

Owner occupiers want big mcmansion but from investment point of view, poor in my opinion. Ryde is a better area. I dread going to baulkham.Hills way. Just too far.

 

yeah, that's the thing mate. most of my clients are in Sydney CBD, so yes driving to the city will be a struggle or walk to the station in the morning....

But yes, the other option is to wait until the price is correcting after the interest rate in 2016 or later.

 

@larrylarry when did they complained is it now or back then 2003 ?

So yes I'm still wondering why the Hills is the most favourable place to live in Northwest if people still complaining ?

 

Still complain because most of them work in the city. Some have found jobs in Macquarie Business Park. You see, not every business sets up shop in Norwest.

 

It's a cultural thing, I grew up in Carlingford and basically from Strathfield all the way to Hornsby I'm very familiar, part of Castle Hill to Quakers Hill, even though these areas are not the best to travel to city but I still decided to stay within this area because I'm comfortable with it even when I know that I can buy cheaper/do better down south......

 

If you are looking at it being a future IP, do you really need land that big?

Always be careful to ensure that site costs are fixed and not provisional. Provisional sums in contracts are a great way to be hit with extra charges ( for engineering, more concrete, retaining walls, etc, etc ).

If you are going to have it is a future IP, try and find a corner block or one with dual-street access ( to allow a fonzie-flat over the a double garage ).

With land that big, I would also look at whether council might allow an alternative style of dual-occupancy home to be built. You will need to check zoning and planning codes or call up council.

I.e. Build something that is dual-occ but looks like a normal house from the front.

 

$524k for a 270sqm house? Seems expensive.

My PPOR turnkey build contract was $386k for 320sqm ( including site costs, driveway, turf/shrubs, floor coverings, air-con and numerous 'upgrades'). Contract was signed June 2013.

 

Its closer in, but a knock down house in Pennant Hills on about 800sqm I think sold at auction for just over $1.3m. Council land value would have been less than $1k/sqm and yet I'm sure the purchasers intend to build new. Thus after demolition, site prep, clearing and approvals etc they probably wouldn't have much change from $1.4m before they even start building.

PH has good train access and is a generally nice area, but I am still amazed at what houses are selling at for a suburb that is over 30km from the CBD and doesn't offer anything special in terms of employment or lifestyle (unless you are a bush walker).

So my guess with Kellyville is that the future capital growth is "priced in" to the packages you have been offered and therefore probably don't represent great value as an IP from a yield perspective, however, when it comes to CG who knows?

Also, those blocks seem pretty small although I admit to not knowing what a normal size block for a house is in that area.