Hi all, my very first post here. Looking at getting my first IP and l've narrow down to 2 areas. Option 1 - Oran Park 560m2 land to build a 4bed plus 2bed granny which total cost around 1mil. Potential rent is $800. Issue is block has big green box (transmission box) at one corner. Plus approx 110m to transmission tower. And also right next to roundabout. Pros is that it is approx 1.1km to shops and future metro station (though my concern is Oran Park stop is still Proposed not Approved.) Option 2 - looking at suburbs near St Marys for 600+ sq land with old house + granny or add granny on it. Cost theses days l'm thinking may need 800-850k? Potential rent around $600? Looking for long term capital gain. Which one would you recommend?
New isn't always better. I'd personally go where there is a station already built, rather than just a proposal.
I'd be trying to buy in the 650k range if possible. Older home, renovation ability with as much land as possible nearish to transport. I recently sold a home for a big premium just because it had the GF potential. Personally I wouldn't be buying new for an IP.
Thanks both for your valuable opinion. I will be house hunting this weekend. In terms of price, it seems the market has heated up a lot. One property in neighbourhood of St Mary's on 620sq with granny already build is asking for high800-900. Which quite supposed me as main house itself is 30-40years. Do you think it is better to buy with granny flat already build which comes with a higher price or is it better to build yourself?
Depends on your goals. For me, I'm not so much about yeild so if looking in those areas, I'd want to purchase a home with 'GF ability' . Just so the land has that extra value factor. I wouldn't actually build a GF. Rather than spending the money to build a granny flat I would use that money to buy a another investment property. so overall you have a larger base of assets growing for you especially in what seems to be the beginning stages of a massive growth spurt.
I don't have any with a Granny, but if I wanted to add one, I'd do it myself. That way I can control how it's done. There's heaps out there with no thought whatsoever in layout and amenity to both residences.
Oran Park could probably provide you with better growth then St Mary's, both are good options with infrastructure in place. However the box and powerlines may cause some sort of valuation or resale issue.
Oran Park is mostly all new estates with very little chance of value add in any of the new builds. I would be putting my money in St Marys where you can buy something on much larger land, much older and possibly at a cheaper price as many FHB dont like to buy things that need renovation - they want move in ready. These properties are possible to buy at a good price and value add yourself which will give you instant equity with some hard labour on your part. Purely going off the planned infra there is no doubt St Marys would win out by a long long mile over Oran Park. St Marys will become (not planned) to be one of Sydney's biggest business and transport hubs within the decade.
Generally I'm not one to hark on about infrastructure as it doesn't usually make much difference to CG unless it's specific type. Which is the case at Oran Park. They're building an airport. Did you miss that? An AIRPORT. That means industry, freight jobs, offices, trains, fast trains, RFDS, people, shops. It's about $10 Billion in spending next 5-7 yrs. How long before they build a hospital? Nurses, students etc. Not sure exactly how it will go, but if there was ever an infrastructure RE play in our lifetime, this is one of the few that will ever come. Look at Broome. It's in the middle of nowhere and prices neain't that cheap. I'd be looking at other places where they built airports and trying to find a way of taking advantage of that.
my concern is over the powerlines and transmission box too. But I guess you wont get the block for that price if it is all perfect. Guess you get what you paid for these days.
Could you suggest some areas ? Surrounding areas like Cobbitty, Gregory Hills price have also been increased a lot.
Maybe do a little research yourself instead of relying on someone you don't know on an internet forum.
Like I said I have no idea. I'm not investing in that area atm. And I don't want to discount St Marys, or especially St Clair with the new roads leading to the airport area.
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