Sydney CBD and inner suburbs - Best value ?

Hi Forum,
I live in WA and am in the market to purchase a 1-2 bedroom apartment in the Sydney Cbd or surrounding suburbs.
My primary reason is to purchase a property which my son will rent from me until he is established enough to take on a mortgage of his own.

So,, With a budget of around 500k, where would I get the best value. I would be looking at either new or near new properties to maximise the tax advantages. Growth and rental yield are also very important.

I am hesitant to engage a buyers agent so am appealing to the good will of the forum to get some insight from sunny WA !

Thanks

 

Hi Docker Boy,
My opinion is that you'd need a bigger budget for something good or decent.

If you want a 1 bedder you are better off with a budget of at least 600k, and even that will be entry level, may or may not have a car space. For 2 bedder territory a budget of 750k is probably just about doable, but maybe not new or near new. For 500k you will probably find you are priced out from anything new or near new unless you buy a studio.

This is what I could find advertised in your price range. I have excluded serviced apartments, studios, anything designed for student living and over 55's properties.


14/103 High Street Mascot NSW 2020 14/103 High Street Mascot NSW 2020 - Apartment for Sale #122313470 - realestate.com.au

9/185 King Street Mascot NSW 2020 9/185 King Street Mascot NSW 2020 - Unit for Sale #122260702 - realestate.com.au

1/13 Kingsland Road South Bexley NSW 2207 1/13 Kingsland Road South Bexley NSW 2207 - Unit for Sale #122156150 - realestate.com.au

So, yes, I could find properties but they were on a busy road or right near the airport. Plus if its advertised as being for auction you don't know what it will eventually sell for, they could be massively underquoted.
You may find more properties but to be honest, look at having a bigger budget for anything half decent.

 

Thanks,
Yep, searching on realestate.com shows nothing much at 500k..
Even 600k is entry level. But may get a brand new in that range.
From a location perspective which areas are likely to grow or sustain these price levels ?
Put another way, which areas would you avoid ?
Thanks

 

Welcome @Docker boy. It sounds like you may have some conflicting needs/requirements there

• Buying new or near new, and also wanting growth. Shiny new stuff tends to sell at a premium.
• With $500k to spend, you will struggle to buy a suitable property (as Gockie pointed out). $600k opens up many more options.

Moving on the the property itself. I'd focus on an established 2 bed apartment about 8-10km out of the CBD within 500m of a train station in a small complex...in a suburb that is improving/gentrifying. You'll find excellent value for money an I am willing to bet 2 bed apartments outperform 1 bedders over the coming decade.

Perfect example of the kind of thing I'd buy (I actually own in this complex):

11/38 Ewart Street Marrickville NSW 2204 - Apartment for Sale #122156938 - realestate.com.au

It's within 400m of Train, Light Rail, Bus etc and Marrickville is undergoing an incredible process of gentrification.

 

Pretty much all of the above but I'd add: possibly look a little further out 15-25km. Definitely a smaller & older block of units in original condition.

Strip and refurbish the complete unit to your requirements if you're after depreciation.

Unless you're familiar with the market a BA will add value at the purchase.

 

I'd also suggest learning about property cycles. Whilst there are always opportunities for astute buyers, Sydney has just been through a boom, so there are better growth opps outside of Sydney. As well as growth, this has also impacted yields

 

If you are going to attempt to buy within 5-8kms of the Sydney CBD, remotely from WA, without a buyers agent, & with a limited budget - let's meet back here in 6 months and discuss how you don't own a property yet or how the OTP new apartment isn't worth what you paid for it.

Seriously you or your chosen BA needs to be on the ground constantly. Our searches there take 2-3 months minimum and that's our full time job.

 

wowza, not even a sh&*!y Zetland dog box for 500 k?

 

Hi Propertunity,
Thanks for the response. In 6 months I may just get the bargain I am looking for . There seems to be a turn in the market with growth slowing rapidly. I have invested in Perth pre-boom and am well aware of property cycles and how the market can turn rapidly... I don't need to rush into anything so will keep an eye on the market and see how it goes. I do agree that OTP is not for me.
Cheers

 

You may need to wait longer, but who knows when prices could go into "bargain" territory.

You can't get much that is new for that price now, only something like this:
A806/20 Levey St Wolli Creek NSW 2205 - Apartment for Sale #122139442 - realestate.com.au