Seeking general advice - 1BD, Wolli Creek

Hi All,

I am seeking some general advice. I am a young single professional moving to Syd in June 2019. Ideally I am looking to buy rather than rent. To this end, I've been watching out for affordable units - particularly around Wolli Creek (I know others loathe the area, but I really like it). The unit I'm looking at is OTP; $550k for a 1BD with a car space. 50 sqm internal + 3 balcony. Construction has commenced and I am told the project will settle in Dec 2019/Jan 2020.

I have a 10% deposit plus a $15k buffer. I anticipate having 20% by Nov 2019. I've read an enormous amount of material regarding the risks of OTP (& oversupply, continuing decline in Sydney unit prices etc.), but I can't help but feel as though $550k seems somewhat reasonable (having regard to current listings and recent sales). Due to the nature of my work I anticipate many late nights in the office, so I really need to be close to the CBD and would likely be paying $500-600 p/wk in rent in any regard.

Am I missing something?

Thank you in advance for any input.

 

Did you look at Mascot or Green Square? Similar prices*. Half the distance to CBD*

*aprox

 

Invest somewhere else and rent in sydney

If u hate money buy an apartment in Wolli creek

 

Why would you want to buy rather than rent if a) capital growth is unlikely in the medium term, esp for OTP units in high supply areas like Wolli Creek & b) renting should work out cheaper when you take into account stata, council, maintenance costs (edit: sorry no depreciation).

 

Not if the OP is OO.

 

Reasonable based on what? The problem is that you dont know what the market will be like in a year.

 

Zetland, Green square much nicer areas.

Not a fan of Mascot it's loud it's over developed few too Little green areas left. Full of Students who dobtd really make it a home rather temp accommodation.

Wolli Creek is . I'm not sure how to comment. I just dont like the wibe atmosphere the people.... I have friends who looked came back with same opinion

Zetland you can walk to Crown Steet in 15/20 city in 45 that's walking . Professional couples , families small amount of students. Markets in the main Park.
Much better feel imo. It is high density done well.

 

I think you might be. Look up high rise on the forum here. Most people here won't touch them and with good reason.

If I were you I'd honestly rent.

 

50sqm with 3 balcony !?!?

 

Congratulations on at least doing your own research and getting a feel for what you like in terms of suburb and facilities. I am guessing that if you may be working late that you might feel safer on the well-lit train from Central on the airport line rather than walking to somewhere close like Zetland?

All the same, as the other posters have said OTP in this market is just too risky. Also you cannot do proper due diligence on a building’s history (construction issues) since there is none. Remember the Opal situation.

In my opinion, if you want to buy, and it’s a long term decision, buy something established. Consider areas like Arncliffe, if you haven’t already. All the best with your search.

 

With a budget of $550K, you're not locked out of better options.

Seek out a 2 bedder with parking in a red brick 70s building a bit closer in or out, say in Arncliffe or Kogarah down south, or perhaps Homebush in the West, or even the Northern Beaches if you stretch your budget. Renovate it when you can afford.

And if you want a blunt answer, spending $550K on a 1 bedder in Wolli Creek is a BAD IDEA.

 

Dear All - Thank you sincerely for your advice. I have decided not to go ahead on the OTP deal. I will instead look at established units (and continue to save in the meantime) - including consideration of other areas such as Zetland.

 

It's up to you whether you buy or not, but well worth going in with open eyes about your timing.

The supply demand dynamics of OTP aren't really in your favour at the moment. Perhaps the price has already adjusted though. For a good while yet, Sydney OTP supply will outstrip demand. That should technically lead to price/rental deflation for a while. Sydney will absorb it relatively quickly, but there's a transition period. Supply lags demand in construction cycles. Demand picks up, supply takes a year or two to respond. The same thing works in reverse. Demand drops off, supply takes a little while to slow down.

We are in the period where demand has dropped off but supply of new OTP hasn't just yet. That makes it a bit riskier to buy OTP now than in previous periods.

 

I think you just avoided a lot of pain. congrats. Hang around here for a few months and learn . It'll really help you make a better decision.

Good luck!