PPOR for $2.7m in "Inner West" Sydney NSW - build or reno?

Looking for PPOR and likely forever home. Is it better to buy a "dump" and build or hold out for near dream property and do minimal renovating?

• Current budget: ~$2.7m
  
• Target locations: Burwood, Ashfield, Summer Hill, Croydon, Haberfield. Will consider parts of Petersham, Lewisham, Dulwich Hill and Marrickville that aren't under a high frequency N70 area
• Needs: 2-3 bedder with generous kitchen, dining and living space, at least 1 car spot (not fussed on rear lane or under cover), 5-15 min from train station, no shared walls, not right near a school, no need for massive yard
• Wants: Victorian era free standing terrace or house. Livable without renos. Also want to be able to one day afford an architect built extension or reno much like the ones on The Local Project here: Harry House by Archier - Video Feature - The Local Project

Issue: limited stock fitting our needs and wants, plus anything 4br+ is usually beyond budget.

Should we:

1. Abandon the Victorian era idea and buy a "scope for the imagination" unlivable type property to build afresh or renovate in stages; or
2. Continue to wait for something that ticks most boxes, is just livable, but really stretches our budget. Hold off on those dream architect renos for a couple of years until $$ is available again

Also, how much would an architect reno/ build like in the link set us back anyway? Are we talking millions?

 

Wow what a gorgeous home.

You're on a Property Investment based forum - one of the key ideas many talk about re wealth creation here is value adding. You'll likely make a fair bit if you do a wonderful renovation, that obtains an emotional premium on resale. Given your intentions, that may not matter much though (forever home). Overall if you want to renovate and have a preference for creating your own space, this would likely be a good way to maximise your budget, create value and build equity/wealth over time upfront & reduce the cost of doing it.

 

Perhaps you have your reasons, but I'd also consider Five Dock at that price point. It will rocket in the next few years once the new station gets publicised more. Midpoint of Parramatta and the CBD - 20 mins each way via the station.

 

Looks like there is plenty of competition in the space

Sydney auctions: Builders are selling off empty shells for a killing - realestate.com.au

This property in Annandale was in your price range last year, just sold for $4.6m

 

I've got a soft spot for renovations, as a big part of my portfolio involves renovating so would opt for this. It's generally cheaper and easier depending on the extent of course.

The first step would be to get a reasonable idea on how much a renovation VS new build is going to cost you - this should make your decision a little easier for what to do. You can pick one example property in the area that you like and then speak with some local builders.

Just for a bit of insight. I'm working with a client at the moment who will be building a 'standard' style 2 storey home (5 bedrooms, 3 bathrooms, 2 car garage) in Hurstville on a 450m2 block and the tenders have come in between $880k - $1.2m. The cost of construction (and renovations for that matter) have increased substantially this year, so just make sure you don't underestimate the costs before embarking on this journey.

Good luck with it all