If you were bound by $900k limit, where would you buy an IP in Sydney? Some of the options we are currently exploring are houses in greater Blacktown, St Clair or an old 2BR apartment in Maroubra. We have an IP in Adelaide and a PPOR in lower blue mountains. So we want this next one to be in Sydney. Main goals are CG *gets crystal ball out of storage*
Id be leaning towards unit by the beach. Might be hard to get decent 2br maroubra in low rise block for that budget
rundown house full size lot as close to Parramatta as possible No idea where but thats what I would pick
IMHO, I'd consider somewhere like Kingsford/Randwick area because 1) now students can't come back and landlords have no tenants, the price is lowered 2) But if you can live in there until students come back then the price should jump up a little. 3. Also, when houses are gone the next big thing is apartments 4) manufacture your own CG into the apartment by rennovating Make sure you buy something that is low rise, established and close to Uni or Randwick Junction or Light rail. But for 900k thats nearing the average for apartments over there
House on land is a safer bet for long term capital growth. Unit capital growth is more of a lottery. More units can be built at any time, but land is the scarce resource. @gach2's suggestion is what is look for. As close to Parramatta as you can buy on a full block of land. Don't buy something compromised such as with overhead wires from high tension powerlines etc. I'd look for a normal house on normal (good sized) block of land. You'll need patience, e.g. don't necessarily expect to see results in less than 5 years. But given a 5 year timeframe or longer, a house should have more growth than a unit cause they will keep adding to unit supply, but as time goes on, we'll continue to tend to see more buyers for normal houses than sellers, resulting in higher prices. Sydney is bound by land constraints. You can also look at Central coast too as an option.
I'd also stick to houses. Can get something of reasonable quality in that budget. I'd be looking around South Penrith, St Clair, Erskine Park for a brick home with good bones, on a large block. With the airport coming, there's going to be a lot of growth over time in this locality and those areas are predominantly home owners. To get something in that price range in Blacktown or closer to Parramatta you'd be looking at something older, possibly fibro, with money to be spent on it.
@skater @Gockie with say 850k, where do you see value in Sydney right now with add value ability via reno. South Penrith, St Clair, Erskine Park?
There's not a lot of add value at the moment. For instance, home across the road from me sold not that long ago for a similar price as a freshly reno'd home. Had old kitchen. Ensuite had a large leak. There's two big expenses straight off the back. If you're into a knock down rebuild, I'll PM you one I've seen, but not in any of those areas, and you might think it sucks. Overall, I think there's less hype in South Penrith than St Clair/Erskine Park and think you could find it easier to find something there.
If I had $900K (I'm taking out all associated costs from that price) I would focus on Western Sydney - and the way I would do it is as such : 1. Make sure you know all agents between Blacktown and St Marys (along the M4 strip) 2. Call them up and tell them you are keen on anything greater than 750sqm and with a granny flat and that your budget is $900K. You are happy to do off-market and settle quickly. 3. Have a daily search in RE.com.au running for those suburbs specifically, I'll name some of them below : Blacktown, Marayong, Lalor Park, Rooty Hill, Doonside, Mount Druitt, Woodcroft, Colyton, Oxley Park, St Marys, St Clair. The further down the M4, the lower the prices will become. However, if you have some good relationships with agents in the Blacktown, Marayong, Lalor Park area - you just may be able to slide into something that needs a little work with a 750-800sqm block in Marayong with a Studio Granny Flat out the back... An example : https://www.realestate.com.au/sold/property-house-nsw-marayong-136732938 Yes, the land is only 563sqm but it's within the budget. This was the first granny flat type property I saw when searching Marayong by Newest sale.
