I work in the city and my husband works in Gosford. First home buyer into property market. Should I look at Ryde area for an apartment as it is around 500k or a house at Woy Woy for around 750k? Would it be better to buy one around Ryde first, then move to Central Coast area to live later ? Just thought Ryde could be a better investment option?
not enough data around capacity, resources, goals and risk profile Gut feel says land content, but emotional considerations may change that a lot ta rolf
They are actually on my waitlist too. So will buying an apartment in those areas easier to rent out with better yield and growth? So I can gear up to a house in Central Coast and settle in? Or would you all say, land is king?
no, land isn’t always king. Location always takes priority and is the most important aspect (because it correlates to expected future demand), followed by price, however land is obviously significant factor. I think now in particular, looking at cost of ownership is a big one. Usually something with land costs about 1% of purchase price, per year to hold, and that is assuming it is tenanted!! example $750k property (787k after purchasing costs) that tenants for $500 per week ($475 after agent fees) and has additional quarterly costs of $1000, with interest rate at 3.3% costs ~$5271 or 0.67% of total price p.a without even including amortised renovation costs, vacancy costs and miscellaneous annual repair/maintenance costs. cost of ownership is also super important for asset accumulation. If you mentioned you’d like to purchase more properties in the future, then cost of ownership is a more immediate and consistent factor. Some will say something that goes up in value is worth the extra cost, however note that expected “appreciation” of capital value is something that isn’t as certain as the actual cost of owning something. long story short, we are going through uncertain times now, so I would put more weight on factors that have more “sureness” to them.
Ryde is in a killer location if commute to CBD is via public transport, however the capital growth of apartments vs houses in Ryde has been very very significant. For an apartment in Ryde, I'd only consider older walk-up style flats with 6-10 apartments on a larger piece of land. The pockets around the shopping center and between Blaxland and Victoria Rd are good options if the budget allows.
if you buy in the Ryde area, I’d personally look for being a walk to a train station. And stick to the 3 level walk up buildings, no pools or lifts. I’d also say a 600k budget will give you options, 500k won’t for the area.
