NSW Sydney: Inner West (apartment) vs South-west (house)

I have been saving my rear-end off for the past 5 years and want to finally bite the bullet and buy a home (have owned before but not currently). However, I have the added goal that I want it to be something value add or something that is going to grow in value, that I can use as a stepping stone and later leapfrog up the market to something better, bigger, nicer location etc.

I am trying to weigh up the below:

1. What (house or apartment)
2. Where (house: 1st preference: Punchbowl, WIley Park, Greenacre...2nd pref Granville, Merrylands, Yagoona; Apartment: Ashfield, Strathfield, Canterbury, Campsie)
3. When (now, or wait).

1. I am heavily biased towards a house. I am worried long term about potential medium-density oversupply in Sydney and based on my budget I can only afford 1960s style apartment, that over time it will become more undesireable and run-down. House gives land and we all know there is a shortage of land in Sydney...plus creates access to further value-add opportunities (development, granny flat, rezoning).

2. Unfortunately I need to live around these specific areas due to work/current school for children -> which is in inner west Syd...I know some are quite 'rough' but I see really good value if you can still buy a house in these areas for 700k (albeit rundown and in need of renovation or detonation...), when places like Blacktown, Oran Park etc are pretty much with similar price tags, yet so much further away from the CBD.

3. I really want to buy now, yes I know we might be at the 'peak' of the market but who really knows? I am worried prices will just keep on going up and eventually I am going to keep getting priced out of the market.


So my question is, comparing a house at a budget of no more than $700k in these more 'outer' suburbs, to an apartment of maybe $550-650k (max) in suburbs a bit more inner west area...which would you go for and why?

 

Greenacre is ok if you're towards strathfield south / hume highway.
The not so good part (in my opinion is towards Wattle St Punchbowl.

 

I'd go the house considering you specifically mentioned about the desire to value add.

I agree, too much ex/current housos

 

Punchbowl has future growth potential. Alongside government infrastructure investments (Sydney Metro) and draft rezoning plans, try to search for a house inside future mid-density zoned areas, as high density areas will cost more than $1 mil.

 

Torn between house in Granville and apartment in Ashfield/Strathfield but you've said you want to value add and have kids so if you can afford it, the house in G for sure.
I would do the same if I could. Some of the houses around there are actually lovely. It is an area that is currently undevalued and not very attractive but is very convenient and has a lot of scope for improvement.
Punchbowl is still a little messy socially and Campsie is ultra crowded.
An apartment in Ashfield or Strathfield would be nice. Granville will see the biggest gains imo.

 

Strathfield and campsie have good schools

 

Strathfield has good high school for girls.
Boys not so much.

Not sure what decent high schools are in campsie.

(Talking government schools here - if you could afford to pay fees of $25k for Santa Sabrina, Meriden, MLC, PLC then I doubt this thread would even exist )

 

I think Granville is really good value, the only downside is it's going to add about 40 mins on each morning and afternoon trips due to kids schools...which is a lot of effort but might be worth it for the growth potential. The only thing I find there are a lot of houses on very small blocks there like less than 300m2 - ideally it'd be great to have 450m2+ in a low density area (so it's cheaper) that will allow a granny flat to be built at some stage. Punchbowl will be good too for this purpose and a bit closer time-wise.

As for schools yes definitely looking at government high schools not private, but I suspect anything in a good catchment is going to be overpriced, so I can always move out and rent in a good catchment area if needed to get in to a good school.

Everything I think about leads me to a house but I just also don't want to be so biased in my thought process that I over-extend myself both financially and in my daily "commute" when I could have achieved a similar growth and 'made do' with living in an apartment inner west...

 

I've done very well with an apartment in the area.
Also, go where it's easy for the kids to get to school. That will naturally attract others of the same ilk. I remember when I was a kid it took forever to get to school and even longer to get home and then I was expected to do homework. Forget it.
People are warning about apartments now but that's for investment. They come in and out of fashion in Sydney. They'll always do well now because the city has changed way more than any other - much more cosmopolitan and always the high demand in one way or the other.
Time and money. If you can get a place and still have time and money left over, you're doing well.
Anyway, good luck with the decision.

 

Kids education is an important factor for me.
Yes its great to make money, but not at the expense of my children.
We sometimes forget that with the hours we work and time spent on renovating.

Kids are a product of their surroundings. There are many forks on my life that I constantly reflect back on (mainly to keep myself grounded). I could have ended up far worse than where I am now had I went to a different school.

My school was 20 mins by car, 40 mins by bus/train - hardly easy, but when you're in high school, trains are where you get to socialise with other students outside of your own school.

 

What are your thoughts on Lakemba, can get a 2 bedroom unit in an older c1960s/70s building for around $380-$420k that seem to rent around $380-$420pw. Im having a little look around there now. If the area gentrifies (metro line is planned for the existing train station) it could help with capital growth in the longer term. From what i can see its probably one of the cheaper places for 2 bedders within proximity to the city these days.

 

School? Have you thought about that?

 

Im not sure where the OP's kids go to school, however Campsie is only 2 stops away on the same line which was listed as a potential suburb. Campsie is better suburb imo but 2 beds there selling for $600k.

 

All that bankstown line is way over crowded for my liking. And that closer to CBD thing for a PPOR is overhyped. For 15 mins extra travel each way your surrounding can be a lot more peaceful.