Ryde Area Cheap old apartment as PPOR

Hi PCers.

Posting to see what opinions I can get from others.

.. so, we are a couple with a two year old son (no further plans for the second) currently renting at $400 / week in western Sydney. Down the track in two to three years time we have to move out to a better area in search of a better public school. Not sure how good they but as someone I know said they are good I am hoping they should do for us, and eyeing at Ermington public school, Marsden school and others in the area.

I am tossing this idea instead of paying (rent will be higher in better areas but even at the current level) $20800/ year as rent, If I can tip in a 50-70 K and try to own an older apartment say, valued at $450k around Ryde, west Ryde and surrounds my repayments (as interest only) at this current interest rate will actually be lower than what I pay as rent. Besides at $450 k loan value interest raises are not a threat to us.

What do you people think , share away your thoughts.
*My priorities are good enough school zone,
*Access to public transport if necessary ( have only one car that me and my missus have to carpool sometimes when we don’t work from home )
*Less travel to work and access to work in other directions in case if we were to change jobs.

Would really appreciate if Someone can talk me out and point me the negatives from above.

Thanks in advance.

 

Is a $450k budget realistic in Ryde/West Ryde - it might get you a 1 bedder only.

 

You can get a units for just over that....480k will get a 2 beddie in Meadowbank or Ryde these days....

 

Remember seeing few in the recent past. I can stretch it to 480k or even $500 if necessary. I am not a first home buyer .say even after paying the stamp duty, legals, other little misc and at 12% deposit my monthly outgoings will be less or equal to my current rent.

Please feel free to critique on what I have just said above.

 

I think the main problem is that there are thousands of apartments already in the area and thousands more being built. If you’re looking in a few years apartments may well be cheaper then due to all the new builds. Traffic is going to get worse and the second stage of the light rail is looking iffy. If it goes ahead it’ll be great.

Ermington PS is a good school.

 

Thanks Hetty. But longer I stay and lower my repayments year after year paying down some principal or stashing some dosh as I save in offset I think I’ll be Comparitevely ahead in few years time. where rental will be competitive but it will not go down year after year like my loan repayments ? Where rent money is a dead money is how I see it in my situation.

I am not sure if I have conveyed what I wanted to say.

 

There has been quite a bit of a correction, only a few below $500k in Ryde and West Ryde. Victoria Rd hits the budget or away from transport near the Melrose Park redevelopment.

 

Your too focused on the cost of rent = cost of owning thing. Can you change your lifestyle, save more, and afford a more expensive property? If property rises long term you get more financial benefits out of that. Remember even if the repayments were the same as rent, there would be additional costs like body corp, council rates, insurance, utilities, repairs, etc which might be another $100 a week.

 

Call me old-fashioned, but I am a great believer in living in a PPOR, especially once you have kids, and more particularly once they are in school. Being forced to move at an inconvenient time, and trying to find a decent rental in a limited area close to schools is just something I never wanted to deal with.

Pick your location (based on school and transport proximity) and search for the best buying opportunity you can afford.

 

Plenty like this

5/10-12 Price Street, Ryde, NSW 2112

If you know where to look...the issue is rents..are now well under 400pw....and oversupply is ridiculous. So even if you bought it ...issue could be yield

 

Hi Trainee,

We consider Our savings are good enough and our saved pennies are being put to use elsewhere as we learn and trying to get better at it. our life style is a partially a choice we can afford to live in better area, take bigger mortgage and say worst comes worst we both loose our jobs, our property gets rattled by an earth quake we will still survive that we are lucky to have blessed parents who will bail us out.

The only loose money I see is rent being paid out each week and I am wanting to put to use as a repayment for a modest home and as I said above learning to invest money that we earn and all within our own means.

 

Hi Sash,

Yes agreed. But will suit our purpose, wouldn’t it?

 

Pay your rent and that is all you need to pay to live there.

Buy.
Interest on loan.
Loan costs.
Building insurance.
Rates.
Water rates.
Repairs.
Buying/selling costs. You need an amount of capital gain just to cover these costs.

You either rent a house or rent money to buy a house to live in.
Buying a house gives you stability. I have read several articles showing you can be better of renting.

But as always ymmv

 

Or both - rent vest, buy the unit, stay put where you are or move closer to Ryde then move into the unit.

 

We sold my Mother's flat at number 2 Price Street, an almost identical unit, back in 2007 for $300k. That was priced for quick sale as we had bought elsewhere for her. So not a lot of growth in the last 12 years for Ryde and with horrid cash flow along the way is it's an investment.

I know houses in the area have boomed in that time, but the net result for units is not inspiring. No reason at all for that to change but still a much better option than any of the overpriced and under built new units around.

If you like the area, buy old. Better value, better built. Have a look at Marsfield too, not sure of prices but like Ryde plenty of old units and a massive number of new ones too. Better transport than Ryde as well.

 

Definitely by old in a small complex if you are going to do this

 

Just had quick look at Ryde and rents really have fallen.
$400-$410 a week will get you a new-ish 2 bedroom apartment.

 

I actually attended the auction for this unit and the price guide of $420-460k was definitely unrealistic. Comparables at the time were selling well over $530k. This ended up going for $570250 and there was a massive crowd of at least 60+ people.

 

Instead of starting a new thread I thought I’ll bump up my own post and get some views.

Since I last started the thread there were couple of properties I liked but I was slow to react and the property were quick to sell off, clearly I missed them.

I gave up and thought this could probably be the time again with record low interest rate, can go up to 20% deposit for the same or similar range properties I was looking at previously.

I am interested in no fuss older apartments around parramatta ( yes I have extended the search area from Ryde to parramatta).

1) does anyone here think the property market is Hot in parramatta and surrounds?

2) If a property is on sale for $460-$500 and if I quote for $445 based on previous sale in under 12 months, does it sound rude or offensive to agents or property owners?

 

Your current estimated loan amount is from your own assessment or from a mortgage brokers assessment?

There are multiple ways to increase capacity as a borrower but you need to speak to a professional.

The market has moved and if you are serious about buying, you should start attending as many open houses as possible and there will be off market opportunities which could be beneficial to you for your selected price point.

Expand your circle of suburbs, there are other places around Sydney outside of Ryde and Parra and if you are wanting this property to be your PPOR and you will live in it the foreseeable future, I wouldn’t worry about rent or yield etc because it is insignificant to your purpose.

If you are only wanting to pay 445 then that is your valuation but someone could come in and pay 509 because that’s their valuation. It’s not about being rude, it’s about who is willing to pay for what. You can only afford what you can afford. There is a lack of stock in the market so it’s a supply and demand issue.