NSW Riverstone vs Northmead

Discussion in 'Where to Buy' started by KMG, 25th Jan, 2019.

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Property preference

  1. Riverstone H&L

    10 vote(s)
    66.7%
  2. Northmead Apartment

    5 vote(s)
    33.3%
  1. KMG

    KMG Member

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    HI I am looking to purchase within 18months depending on market decline, up to 680k. I have been looking at 2br apartments in Northmead going at the 575k mark. I have also been looking at a 670k house and land package in Riverstone 4.5br to be completed end of 2019.

    Could I have any advice on which route could be seeing better days in 10-15 years time and why? Any personal experiences with each area or the land vs apartment argument would be highly appreciated!

    Thanks very much,
    K
     
  2. Jana

    Jana Well-Known Member

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    What is the land area for Riverstone property?
     
  3. Scott No Mates

    Scott No Mates Well-Known Member

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    Northmead - proximity to Parramatta (new light rail, MCA, WSU, Northconnex)

    Riverstone - Badgerys Creek???
     
  4. KMG

    KMG Member

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    Location:
    Baulkham Hills
    315sqm
     
  5. Propertunity

    Propertunity Well-Known Member

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    Hmmmm, there's not much you can do with that development-wise. What are the strata levies on Northmead please?
     
  6. KMG

    KMG Member

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    strata at Northmead is 960/qtr. Apartment does 95-115sqm
     
  7. Propertunity

    Propertunity Well-Known Member

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    It is all pretty hypothetical atm anyways as you say, you're 18 months away from doing anything, and you don't know what decline there may be. On top of that you want a forecast 10-15 years out. :eek:.
    The last 15 years, the Riverstone houses on land have out-performed Northmead units by quite a way. Will they continue to do this? who knows? and on top of that the H&L is really an OTP as it is as yet un-built.
    For me personally, as a PPOR, I'd lean towards the Northmead unit for mostly location reasons.
     
  8. virgo

    virgo Well-Known Member

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    For me , the decision would primarily depend on what stage of my life cycle i am in....as in for eg. can you imagine trudging to the city for work from Riverstone.....OMG!
     
  9. John_BridgeToBricks

    John_BridgeToBricks Buyer's Agent Business Member

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    I like Riverstone, but I don't like house and land packages and I prefer Northmead. Land is always preferable, but not all land is created equal.

    Northmead is pretty vibrant if you can get close to the hospital and the right style of unit in Northmead would be a pretty reliable investment.

    Agree with Propertunity that there is a lot of water under the bridge between now and the next 18 months, but from what we know from this post, a well located unit in Northmead would be my slight preference.
     
  10. KMG

    KMG Member

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    I work in Parramatta and will for the long-term. My partner works around the hills district. But I understand anybody buying from us in 10 years may find city access alluring.
     
  11. KMG

    KMG Member

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    Thank you so much for your response it's really helpful. I have been more Riverstone inclined as a first home buyer wanting more house space for any life changes. My partner is Northmead inclined for the reasons you stated. It really is a convenient location and possibly the safer option. I understand that 12 months out this is all hypothetical comparison but it helps me to get my head around the pros and cons. Thanks again!
     
  12. KMG

    KMG Member

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    Thanks so much for your response and I understand it's all projection and hypothetical right now. Your insight has been helpful in weighing up our pros and cons. Do you know when I can find information on the Riverstone house performance you mentioned?
     
  13. KMG

    KMG Member

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    May I ask why you don't like house and land packages? I'd like to understand what is good and bad about them.
     
  14. Propertunity

    Propertunity Well-Known Member

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    Paid subscription to Core Logic rpdata or APM Pricefinder. See attached report here.
     

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    Last edited: 25th Jan, 2019
  15. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Riverstone has an abundance of H&L and supply will exceed demand for a long long time BUT demand will escalate when the Metro reality arrives in 6 mths. People have no foresight and when the metro is on they will suddenly realise how close it brings the City and to work. In a few years The Ponds went from H&L packages to well valued property as the suburb matured. Some of the devs in Rivo are OK and others a bit on the dodgy side. Buy carefully. One matter that is yet to be tested is whether the (massive) flood mitigation works are sufficient. Time will tell. Then the flow on impacts of growth between Windsor Rds, Richmond Rd and then out to the new airport metropolis around Badgerys will maintain progressive demand Last night they spoke of 200,000 jobs......This growth chase occurred when the M2 was first proposed and it has never gone backwards. The M7 and connections just pushed it along.

    Last weekend I noted that from Richmond Rd near Ikea to Rouse Hill by car is around 15mins along a single wide road. And when the Metro comes so do a stack of new bus routes too. This will assist demand by owners and renters. 25 mins to Chatswood. In a few years its 40mins or less to the city.

    Northmead on the other hand is a built suburb and the only change there is density. More and more towers popping up and not all of them great. I'm thinking Dyldam. And the roads are already stuffed with NO plans to improve it
     
    Last edited: 25th Jan, 2019
    sumterrence likes this.
  16. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    This is not a criticism but an observation. BAs tend to avoid H&L as its not a market that is demanded and they would have trouble adding value. Its like asking a BA to find you a new project home. Or paying an agent to find you a new car when they are all on display with little or no price negotiation.
     
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  17. Scott No Mates

    Scott No Mates Well-Known Member

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    Northconnex?

    upload_2019-1-25_14-8-29.png
     
  18. Scott No Mates

    Scott No Mates Well-Known Member

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    I've used a car buyers agent through my industry association. (@ no charge)
     
  19. John_BridgeToBricks

    John_BridgeToBricks Buyer's Agent Business Member

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    Hi KMG,

    No problem.

    The problem with house and land packages is the same as the problem with off-the-plan: this is that you are buying at a premium something you should be paying a discount for. The reason for the discount is that you are incurring risk and uncertainty - the uncertainty of the completion date, fixtures, fittings, quality etc.

    In addition to this, the market isn't really setting the price - the developer is. So it is most likely you will over pay.

    Other concerns are around: lack of infrastructure, over-supply, competing with ever newer properties

    There are also risks around how the purchase is financed, with the purchase of the land up front, and a construction loan to see you through construction of the property. So you incur debt, without either a property or a rental income.

    Like anything, there are positives too (nice new property built to order). I have only focused on the negatives here.

    Hope this helps.

    John
     
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  20. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    More likely they know what the best price is and you didnt. Can save shopping around but dealers all know when they get four enquiries for same spec car from four agents and the original customer. And they see quotes on their other lots and find same thing there. Its all tracked. And in most cases they are local and dont want to pickup elsewhere. Or they chase the last $50....Easy to spot them. They almost always use the cheap tint that bubbles on rear window that no dealer will sell and take no options but want a $20K sedan with all the safety kit, video cams and the rest. Or a BT-50 4x4 top spec for the cost of a single cab 4x2

    My sons in sales for a major brand and deals with it daily.
     

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