NSW My next purchase - Thoughts/criticism/input?

Hi Everyone,


This is my first post on this forum, but I’ve been reading it for a while now.


A little background info on myself;


I’m 21 years old, and bought my first property when I was 19. It’s a house in Acacia ridge (just outside of Brisbane), which has grown slower than I’d have liked but I acknowledge it’s a long-term investment. Given the rent from the tenant, it doesn’t cost me much to hold, and I hope its value increases in years to come.


Anyway, the real topic of this post is I’d like to get some input from everyone on this forum around my next intended purchase, and the timeline I’m working with.


Within the next 6-9 months I intend to purchase a 2 bed apartment in Dee Why (Sydney’s Northern Beaches). This will be treated as my PPOR, but I’m in no immediate need to purchase, however, I feel like the above timeline could see me get a good deal, as prices cool off/decrease. Once purchased, I’ll live in this apartment at least 3 years.


What impact do you guys think the significant developments around the Dee Why area will have on the price of the older brick style apartments in Dee Why? (Meriton Lighthouse, Osprey Apartments, The Carlyle etc.)


Given the luxury of time, when do you guys think the best time to buy would be?


I’d like to buy at the lowest period possible, so as to reduce my mortgage.


What do you guys think?


Cheers!

 

Well done to see you jumping in at such an early age! I wish I started as young as you did so kudos in taking action

I think 6-9 months purchase timeline is decent - I would even stretch out longer to 15 months. At current rate Sydney market isn't going to rebound quickly (unless external factors kick in) so time is on your side.

You can start keeping an eye out on the suburbs now so you are tracking closely on it's activity - how much are the units you're looking for being sold and how much are the vendor discounts, days on market etc. And then when you are ready to jump in you will know what the true value of the property should be and can act quickly in order to negotiate and get a decent discount. The key here is you can be selective and make low ball offers. If rejected by vendor then simply move on to the next deal.

In relation to the significant developments in Dee Why area - lots of new supply is not great and will definitely impact rental market around the area. But if you're gonna live in there for at least 3 years then I think by the time you turn it into IP (assuming you do want to turn it into investment at some point) the extra development stock would've been absorbed by the demand of the area.

Cheers,
David

 

Thanks David, hoping to see some great returns as years progress, I'd love to retire early on the back of an investment portfolio.

You make some great points, and I'm happy to see that my thoughts are similar to those you make.

Thanks for your input,

Cheers.

 

I don't know much about the locations you've mentioned but you're in a great position!

I bought my first place when I was 22 and moved straight in meaning I got FHOG, stayed in it for around 18 months which was great lifestyle wise, then moved back out and am going to take advantage of the 6 year CGT exemption when I sell in the next 18 months.

I'm sure you're already aware but just be careful of paying too much of the loan off of it is going to become an investment property after a few years.

I'm assuming you're currently living at home? Moving out will obviously increase your expenses quite a bit and slow down your saving but you have to live so enjoy it! Just make sure you have a bit of a buffer. You've always got the option of renting a room to a mate (cash of course) to make things a bit easier. So I would consider that when looking at places, ensure it's a genuine 2 bed and not a 1 bed plus study.

You look like you've got it all under control though so keep up the good work!

 

Hi Brendon,

Thanks for your response mate, you make a good point around FHOG. From the research I've done, I believe I'm eligible for FHOG this time around too, as my IP is based in QLD, whereas I'll be purchasing this place as a PPOR in NSW (Sydney).

Also a good point around ensuring it's a genuine 2bdrm apartment. As I see it, a 2bdrm would eventually deliver a better rental experience when I do rent the property, correct? 2 beds allow for young families (plenty of which live in Dee Why) and should rent at a higher rate. I'm also thinking of renovating before I move into the place I purchase, which should be favorable once I do decide to rent it.

Thanks for the kind words,

Cheers.

 

Legend! Sorry don't have anything useful for you but wanted to say good on you. No smashed avo?