NSW Owner/Occupier Property Growth - should it be considered?

Hi All

I have just been in a 3 hour black hole on this forum!

My partner and I are looking to buy our first home and madly researching.

I had a question and I would be interested in hearing your opinions.

So we are debating whether a house on a smaller triangle block on an arterial road - close to amenities/also close to housing commission but in a good/familyville suburb is a better long term growth option than a better property on a good block but not in such a hot zone.

So essentially the last house in the suburb or take your pick in another suburb a few km away.

We are not looking to buy purely on capital growth potential but "money grows where money goes" and can't help but think it is something we should strongly take into consideration.. thoughts?

Anya

 

Haha - 3 hours is just the start I’ve lost over a decade.

It’s a tough question - I assume the first property is closer to a CBD? From my experience - the inner city stuff tends to do better long term (that’s just been my experience though - and admittedly a lot of that experience stems from Canberra purchases).

Cheers

Jamie

 

Go for the better location, always!

 

I assume this is to live in, right? Without specifics about where you are looking at, it is hard to say. A few kilometers away today, could be the "hot zone" suburb in 10 or 20 years if say the area gentrifies or there is infrastructure planned. And whilst location, being close to where jobs/amenities/transport are, is where you want to be, I have to say a triangle block on a main artery doesn't sound that appealing either to be honest. I mean... would you be happy with a triangle back yard OR having to turn into and out of your driveway when everyone is going at 100 miles an hour???

Also... it feels like you may be agonising between door number ONE and door number TWO, both of which may not be right... Are you in hurry to make a decision? I think if you are patient, you will have a lot more opportunities soon the way things are going.

 

Steer clear of main roads and irregular blocks both for investment purposes and ppor purposes. Will inhibit growth and the main rd will decrease your quiet enjoyment of the property. Good luck

 

A property on arterialroads might sound good in a downwards market, not good for l9nger term.

Last to grow and first to fall. I would prefer a peaceful location any day.

Regards

 

Thanks for the comments.

Looking to owner occupy.

As longterm renters we have lived in the least desirable in good suburbs and thats the appeal of this property, but as you have said maybe the suburb a few kms will gentrify. Need to run our sights to longterm.. I agree a simple everyday thing like reversing out of the driveway on a main arterial road may send me bonkers.

 

Another question...say you have finance (and the ability to pay a mortgage) for 650k.

Do you buy the 500k house that you can happily live in however it is smaller and will need some work in the future or do you get the nicer, renovated house nearby for 650k??

 

Depends on what renovation is needed. If it’s a couple of bathrooms and a kitchen replacement, adding a new room or two - or just a repaint - can make a huge difference to the cost.

 

Agreed and to add - also stay away from "also close to housing commission".

 

You could move straight in and live in the cheaper house, its not falling down however new flooring, internal paint, bathroom reno and kitchen makeover is desirable. Worth noting most houses in Wollongong have decent yards with the option to extend out the back.

I am really more interested to know if it's wise to buy the best your money can buy ?

We will owner occupy for the long run.

 

for a owner Occupied house, I would go for the best one I can afford. need to feel comfortable to live in it and enjoy living in it as well.

 

There's no simple answer to that. It's always good to buy something affordable but you want something that can be lived in and fixed within budget too.
It may need more work than you think. I'm not familiar with the market there but a cursory look at recent sales show that it seems to be priced competitively.
If you're not sure, maybe keep looking?

 

I look forward at what our requirements would be over the coming years not just today.

If we are looking at starting a family how many kids do we want to have - if we don't want kids we might be okay with a 2-3 bedroom (I would steer clear of 2 bed houses as it is a small market) however if we were having 2 kids then I would probably look at 4 beds as I would like to have guest bedroom for when parents come to visit (happens numerous times a year).

If we are planning for 3-4 kids then clearly we are going to need 4+ bedrooms.

For renovated or not renovated - it would depend on my skill set and do I want the hassle... For me personally I cannot renovate myself if it was kitchen/bathrooms and also I wouldn't want to not have a kitchen for a couple of weeks and deal with all the mess so I would more favour renovated - I know I am paying a premium but I get that back in lifestyle.

Having a smaller mortgage is great as well as it allows you to save more, pay the loan down faster or buy more property quicker - all will depend on what your goals are.

However I would want to have the best we can afford for our house that is reasonable then do it tough as the CGT free is best utilised for us.

As @Jamie Moore mentioned earlier I have lost well over a decade with this and still haven't lost the 'bug'.

 

Children will cope with sharing bedrooms. I had to even as a teen and I lived through it. Admittedly, in an ideal world teens like to have their own space but little children don't need their own room.

 

Depends on how far out you look.

I bought a 4 bed + study house before I was even engaged and living by myself but I was looking at what our future may hold.

Fast forward 6 years and married with one child and one on the way and we still don't need to upgrade. If I had bought a 3 bed house then things would be tight but still liveable however I don't want to just live I want to enjoy.

I do agree kids can share rooms - in fact everyone can share a room however I would ideally like to provide each child with their own room as it is how I would like to raise a family - I know it isn't required.

 

Go for Land Value as the component that is your investment over the long term. If the land value is good and going to be good your investment is sound. Have that as your 'mandatory' criteria. Land value is driven by size, location, geometry. The land is also fixed (when you buy it) so that is what you really have to 'live with' long term. Then all the house elements are just desirable, the bricks and mortar are kinda fixed and kinda changeable. Then hte fixtures and fittings are completely changeable.

I have a house with a magnificent block in a goodish spot, house a bit crummy, but with a new kitchen it is a pretty good package. Nobody really whines about a crack in a wall, it doesn't affect people day to day, so big deal!

If i lived my life a second time i would buy the best land that i could, be flexible about the house, and improve the house and fittings if i wanted to or could afford it (or if the 'trouble and strife' insisted).

 

hmm some very good advice here, thank you all. I am sure I will be back with more questions as my research and property watch continues.

 

This! I would rather live away from houso in a not-so-prestigious suburb than near houso in a prestigious suburb.

 

hard to say there is one in front in Westfield shopping centre - Doncaster no one seems to notice