NSW Sydney > First IP > Budget 630K

Hi All,

I've recently been looking at properties, mainly old 2/1/1 apartments in the following suburbs:

1. Penshurst
2. Mortdale
3. Kogarah
4. Carlton
5. Eastlakes
6. Rockdale

The general price of these properties are around the 560K mark. Essentially this would be my first IP as a FHB. My goal is to hold the property as long as possible, so capital growth is the main driver for my IP as i would like to unlock the equity to build my portfolio onwards.

I just wanted to get your opinions on whether i am looking in the right direction or should i invest that $630K somewhere else, i.e. a house more out west?

 

The following DSR+ scores are for the month ending Sept 2019. DSR+ is the Demand to Supply Ratio+.

1. Penshurst units 63
2. Mortdale units 64
3. Kogarah units 62
4. Carlton units 57
5. Eastlakes units 60
6. Rockdale units 61

Earlwood units' DSR+ is 72

The problem with units is that there's always potential for over-supply. Whereas houses require vacant land to suffer from over-supply. So, in built-up areas you're reasonably safe from over-supply of the same type of property if you buy a house on a decent sized block (600sqm or more). But units can spring up anywhere.

For Sydney houses in the same price-point ($650k median or lower), some of the best options to start your research with include:

Blacktown houses 63
Doonside houses 65
Sth Penrith houses 66
Sadlier houses 64