Hi all Currently renting a 2 bedder (require 3bed) in Westmead for 500pw. Lookin to move to a 3 bed 2 bath in Westmead soon. kids are going to primary and high school both in Westmead/Parramatta so prefer to stay here for next 3-4 years. Wondering if buying a 3 bed 2 bath unit would be beneficial over renting ( rents are at 550-600pw depending on age of unit) Old 3 bed unit costs around 660-690k and new ones are ranging from 700-740k. Seeking suggestions/thoughts on above.
If your time horizon is only 3-4 years to keep the property, then I'd say rent don't buy. The transaction costs are too high to get in and then out of the investment and may eat up all (or most) and then some, of any capital growth. Real estate should be seen as a minimum 7-12 year hold to allow a full cycle.
Sorry should have been clear I would defenetly live there for 3-4 years ..beyond which would either leave it for rent and move it to another suitable location or may continue to stay if required .No plans to sell for at least 10 years.
If you plan to keep for 10+ years and you can afford to buy, then I'd buy. Interest rates have never been lower. Westmead is a good location. I tend to buy older units in 3 storey walk-ups with a view to renovate to add value. I'd avoid the newer ones - build quality, too many of them (not unique), high strata fees once the lifts come out of warranty period.
Van, the answer varies on your investment habits. If you have built up a great investment base by renting and would continue to reinvest, then I would stick to your investment plan. If you are simply saving money in the bank, then the purchase of a home is the first step in financial security guaranteeing no rent increases. Westmead is the best suburb in western Sydney as there are very few vacancies, it has the best train services and enormous local employment.
Its been a year in Australia for me ..no investment yet..just been saving for a deposit to buy a property..thougts are to buy in a place where I am renting anyway now
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