NSW Looking for advice and challenges to my home buying strategy.

Discussion in 'Where to Buy' started by Big_Apple, 2nd Oct, 2021.

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  1. Big_Apple

    Big_Apple Member

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    Hi everyone, I’m middle aged, newly single and looking for a long term place to call home. I have a strategy and looking for advice or challenges to my plan!

    Context: I work in the city, but can work from home 3 days per week; the days can be flexible. I’m single, middle aged, with pre-approval for 1.1m. I grew up in cities but have lived in the country and love nature. I have recently fallen in love with Kayaking.

    Strategy: Purchase a home within ~3 hours drive of Sydney for approx $850k and rent a cheap 1 bed apartment in a good location near my work or rent a room in a share house. For the home purchase, I’m thinking about Ulladulla (looking for a foodie vibe + access to kayaking!), but will go visit the south coast area once lock down is lifted.

    Reasoning: With $1.1m I can barely afford a 2 bed apartment in a location I like in Sydney (reasonably good access to water, e.g. lower north shore, Pyrmont, Balmain). I need space to work from home, space to dry off a kayak, space to have a dog. Servicing a mortgage is twice as expensive as rent for a place I’ll look around and wonder ‘is this what I got for over a million bucks’?

    I love nature, I can buy a house to call my home and 3 hours drive is nothing when you only have to come into the office for a couple of days. After a few years I’ll take a job that can be full-time remote. Also, 3 hours is a reasonable distance for friends to visit on weekends.

    Finally, I figured I know nothing about buying property and I’m by myself, so I’ll pay for a good buyers agent to help. I’ve circled around a few strategies (including moving to Melbourne to be closer to my sister or biting the bullet and paying for an old apartment in a great location) and this is the one that I’m leaning towards.

    I’d love any thoughts or advice, thanks :)
     
  2. Trainee

    Trainee Well-Known Member

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    What does middle aged mean here?

    Excluding the property, what do your retirement plans look like? Will you have enough in super or assets outside super for retirement?
     
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  3. sash

    sash Well-Known Member

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    Have you thought of an older unit in Meadowbank?

    People go Kayaking in the river there...older units can be had 550-650k. It is dense but older units not so much. Good cafes in Putney..Ryde....within biking/driving distance...less than 2klms.
     
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  4. Lizzie

    Lizzie Well-Known Member

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    ... or buy an older unit - AND - a house down the coast
     
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  5. Big_Apple

    Big_Apple Member

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    Thanks for the reply, good question! Retirement goal is to own my own house and live in a nice community just a few hours drive from family. I’m mid-40s, on a good salary now with house deposit saved, but don’t yet have enough super for retirement. I missed out on almost 20 years of super from living overseas and chasing creative careers (interesting but low paying!) and am basically playing catchup now.
     
  6. Big_Apple

    Big_Apple Member

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    Thanks for the tip, I’ve never been to Meadowbank and will take a look at the area.
     
  7. Big_Apple

    Big_Apple Member

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    I’m assuming that’s outside my budget, but it’s a good reframing to see what’s possible!
     
  8. Trainee

    Trainee Well-Known Member

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    Should you look at building some investments before considering a ppor 3 hours from sydney? Will that perform better than other investments? Even if it does, are you comfortable with say borrowing against it to invest in other things? What’s your view on debt if taken out for investments?

    can you afford to live the lifestyle you want to now and have enough assets (outside of ppor) to retire in 20 years? And, what if you lose your job and have to take a pay cut before 65?
     
    Last edited: 2nd Oct, 2021
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  9. Big_Apple

    Big_Apple Member

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    Thanks @Trainee, more good questions to chew upon. The main takeaway I’m getting here is that, while I’m very focused on ‘stability and security’ (i.e. finding a long term home) I need to consider a strategy for retirement also.
     
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  10. Trainee

    Trainee Well-Known Member

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    Stability and security can be from cashflow from investments so that you can pay for your expenses, including rent even if you dont own a property.

    on the other hand, if you have a property, even mortgage free, and not enough cashflow to live on, is that really stable and secure?

    buying your own place is likely a good idea, but you have to consider whether delaying that might be better for your overall future.
     
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  11. Daniel Domingues

    Daniel Domingues Member

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    Have you considered rentvesting?
    Rent somewhere where you have access to kayaking and not that far from the office and close to restaurants and etc... Then invest in 2-3 properties in other locations that can bring you the capital growth and better rental yields than Sydney
     
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  12. Big_Apple

    Big_Apple Member

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    I have considered rentvesting. I’m just so tired of moving from rental to rental and not having a home to decorate and grow into the way I want. There are very few protections for renters here in NSW and I’d love to find a place that’s my own little long term sanctuary. As you can see this is an emotional decision as much as financial

    Your points are interesting. As also suggested by @Trainee it is interesting to frame this around planning for stability and security in the long term instead of trying to chase it in the short term…
     
  13. sash

    sash Well-Known Member

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    Por que no dos!;)
     
  14. Daniel Domingues

    Daniel Domingues Member

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    The only place by the water that I can think to be affordable for a house (not unit) in Sydney is Brooklyn but I bit far from the city
     
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  15. gman65

    gman65 Well-Known Member

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    Move to qld...kayaking is great up here.. We've got rivers (something something Brisbane river) plus plenty of lakes, rivers, oceans, and more to explore. I'm an outdoors guy, and for me SEQ is the best place on earth for that lifestyle.

    And under 1m can still get you a free-standing house
     
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  16. bythebay

    bythebay Well-Known Member

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    You can get a 2br apartment literally next to water with garage and store room for your kayak in Lane Cove, just saw one at 302 Burns bay road under Sold history on domain. There’s a boat ramp in Burns bay reserve right next to the complex where a lot of people have been launching their kayaks. older style walk-up brown brick so a lot bigger than the new stock, should be very comfortable on wfh days.

    2br apartments in Abbotsford, Chiswick, 2046 suburbs, Drummoyne are also options for a keen kayaker within your budget.

    happy hunting!!
     
    Last edited: 3rd Oct, 2021
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  17. Big_Apple

    Big_Apple Member

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    Thanks, I’m keen to visit Lane Cove alright!
     
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  18. Big_Apple

    Big_Apple Member

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    Just want to say thanks to everyone for your advice and comments. I’m new to this forum and really impressed by this community.
     
  19. bythebay

    bythebay Well-Known Member

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  20. apaul

    apaul Well-Known Member

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    But how about jobs and other benefits of staying closer to big cities.