PPOR for family, unit vs townhouse vs house -900k

Discussion in 'What to buy' started by Gizmobees, 10th May, 2020.

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  1. Gizmobees

    Gizmobees Member

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    Hi legends,

    I’m a newbie here and was redirected to Property chat when researching online on suburbs and property worths.

    We are a family of four in our early 30s with two beautiful kids and a dual income.

    We decided to use hubby’s income to get the loan and mine for household expenses, kids daycare, savings and travel.
    That leaves us with a deposit of 150k and property options upto 900k.

    Some of the OTP made earlier snapped due to counter offers.
    1. A house in the hills district
    2. Townhouse in the north rocks/fivedock/winstonhills/Baulkham Hills
    3. Unit in Ashfield/Homebush/Ryde/Waitara/Hornsby/Meadowbank/fivedock/Greenwich
    4. Buy house plus land package near Campbelltown/Camperdown, sell off in a few years and upgrade
    5. Or hold off your cash as the prices may go down further.
    Based on the above, which option will leave us with a good capital growth in the long run.

    P.S. This will be our first home and plan to live for another 5-10 years atleast.
    top criteria: schools, activities for kids & 10-20km radius to CBD.

    TIA
     
  2. Jess Peletier

    Jess Peletier Mortgages, Finance & Property Strategy Aust Wide Business Member

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    In 10 years your kids will be MUCH bigger. Will a unit still suit? Don't underestimate how much space they'll take up!

    Mixing PPOR criteria with INV criteria often end up with an uncomfortable PPOR, or a substandard INV, so you need to be VERY clear on your outcomes if going this way.
     
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  3. Gizmobees

    Gizmobees Member

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    Hi Jess,

    Agree with your suggestions.

    As you rightly pointed, unit will not be enough in the long run.
    The ultimate goal is to have house of our own in a decent suburb with good schools around without having to make high mortgage repayments.
     
  4. Gockie

    Gockie Unicycle - get exhausted but never two tired Premium Member

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    Number 1 is my preference.
    2 & 4 maybe ok, prefer 2 but only cause I am less familiar with Campbelltown/its quite far out
    (Hint. No H&L in Camperdown, it's near the city)

    I'm less keen on a unit, your kids will grow as Jess says so if you can buy a house or townhouse, it's better.

    Start looking now, I wouldn't bank on house prices dropping. Sounds like some loosening of restrictions is happening. :)
    To keep our population safe, I think the country will remain locked away from the rest of the world apart from with NZ and some Pacific Islands. I think businesses in industries reliant on international travel and big events will suffer till around mid 2021 but the rest of the economy will be working.

    No crystal ball.
     
    Last edited: 10th May, 2020
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  5. Archaon

    Archaon Well-Known Member

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    Have a read of all the horror stories around OTP on the forums, not that great.

    How do you feel about renovations? You could buy a fixer-upper and value add through renovations.

    Houses that are already 20 years old etc have had the majority of their issues fixed that have arisen, with new builders you are at the mercy of the builder and their warranty policy etc.

    Could be hard to find a H&L in a good school district, I have no idea on good area's in Sydney either.
     
  6. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    As an aside, who is your lender and how long do u think it will take u to pay it off ?

    ta
    rolf
     
  7. Gizmobees

    Gizmobees Member

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    Thanks Archaon! We’ve looked at that too, sadly there haven’t been much listings lately except for the new house land packages.
     
  8. Gizmobees

    Gizmobees Member

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    hi Rolf,

    Our lender is a major bank and we are looking at 15years subject to circumstance changes.

    Thanks
     
  9. Gizmobees

    Gizmobees Member

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    We like a house in Winston hills which is in a 588m2 block with a floor area of 112 and a townhouse in north rocks roughly 190 m2.

    Asking for Winston hills - 890k (almost 200k below the purchase price)- reason for sale is due to a personal situation. The problem with this house is the frame/sub floor under the bathroom has a wooden moisture damage(attached pic) which needs to be replaced ASAP and there is not much scope to extend the house either.

    Asking for north rocks - 750k ready to move in with a few cosmetic changes.

    Looking for recommendations based on above.
    if both are not worth it, we will continue our search.

    TA 27DD253B-E16B-4CCA-B4EF-FBE6F9C9A222.jpeg
     
  10. Trainee

    Trainee Well-Known Member

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    How old is the winston hills house and when did the current owner buy it?
     
  11. Gizmobees

    Gizmobees Member

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    30 years old. Owner bought it in 2017
     
  12. Gockie

    Gockie Unicycle - get exhausted but never two tired Premium Member

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    If you can handle the extra loan amount, I tend to think the house might do better long term.
    Can I ask are both located in a quiet area?
     
  13. Gizmobees

    Gizmobees Member

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    thanks Gockie, Both are located in a fairly Ok area. We both are nature lovers, hubby loves old heritage homes and I enjoy the contemporary style. So we agreed to look at homes that has a old heritage outlook and a contemporary style within.
     
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  14. Gockie

    Gockie Unicycle - get exhausted but never two tired Premium Member

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    If you like heritage, look for my thread “We bought the house!! :)

    We are still here, and love it :)
     
  15. Gizmobees

    Gizmobees Member

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    It is a such a beauty Gockie! Loved what you created with it “a home from a house”
     
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  16. Mark F

    Mark F Well-Known Member

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    I would go for the house if the photo shows the full extent of the damage. A good back yard is so important for kids to be able to run around in. I suspect the repair will require the bathroom be gutted, floor up, replace the joist, then new floor, waterproofing etc