NSW North Shore Sydney - blue chip

Family member looking to purchase a family home in a blue chip area of Turramurra / Wahroonga etc (i.e. east side walk to rail - but not bangalla / billyard avenue type).

What are people's thoughts on if / how this market will be affected with the Sydney slow down?

I saw this go recently, which seemed cheap, but not sure if there was something wrong with it, or it's indicative of the impending sydney slow down.

They aren't concerned about the house, just need 800-1000sqm.

 

Might just be the slowdown. I think that's a very good one for the buyers, though I'm not overly familiar with the area

 

Turramurra / Wahroonga might be blue chip now...but in the future I don't think they will be as sought after. Large houses with high maintenance will be less desirable for the Gen-Y crowd.

I reckon properties which are smaller well laid out ...close to trains/transport with 15 klms of city would be more sought after.

 

Thanks Gockie.

That's fantastic then. Hopefully they will stunt in growth then and become cheaper as it will be a PPOR, not an investment.

 

Those areas make no investment sense....you are getting something like a 3.5% return...you are going backwards.

I mentioned that Epping would tske it hit.....it now has taken a very big hit...for exactly the reasons I stated plus the massive pulling out of Chinese investors.

 

Only If you're investing for cashflow - capital gains will top up the returns but you have to wait for that & we know that Millenials can't wait).

 

Well most people will struggle to pay 35k per annum out of their pockets....as for waiting ...we are talking about 6-8 years.....

 

I don't have any issue with that.... A family of 4 income earners paying $140k. I'd even knock off 10%

 

I agree. Well priced for the East side Wahroonga market. Walk schools, shops on a nice 1000m2. Nice looking house with pool. Only one car garage a bit small. Under 2 mil. One of the prime areas of Nth Shore. Wahroonga East side always sells for (sometimes suprisingly) good prices.

 

I agree with this especially the bolded part. The Sydney boom resulted in ridiculous prices for many areas that objectively had nothing much going for them outside of being within the boundary of what is considered to be Sydney. To make money going forward (or even just not to lose money) buyers will need to be a lot more strategic with their choices

 

What sort of investment horizon are you thinking about for residential property?

 

2 to 3 years

 

Thanks for the comments, but can we please keep it on topic. They aren't really looking for an investment but a PPOR which has different value drivers.

 

Would they care if it fell during a downturn then?

 

Are you sure they aren't confusing *need* with *want*?

As for the downtown - haven't been following it specifically, but if you see the trend here

Wahroonga Investment Property Market Data

It's dropped from $2.2m in January to $1.88 in October. Is it done? Unsure.

 

That makes no sense unless theyre looking to build. Then they should look for a block with a horrible house. Itd be cheaper.

 

Its already far removed from need when you look at that sort of suburb.

 

Not in the long term, but I guess when you have the luxury of some flexibility on timing the entry, why not.

Well, the need would be a roof over your head etc etc. But I don't think that's the question. Thanks, that link is useful.

Yes, you're correct.

Agreed and needs v.s. wants is a big conversation perhaps for another thread . That's what they want for their kids.

 

Are they looking for a house to live in right away, reno, or rebuild? If they say depends on the property, its hard because they dont know what they want.

 

As REA who lived and worked in the area for years I can tell you this part of the world was always popular for families with young children because of the good schools, leafy area and safety. OK there are now high rise buildings along the railway, doesn't change the homes there as only 5 mins from shopping centres and the trains. IMHO any good home in the area would be a good investment for a PPOR.