NSW Sydney - which of these suburbs?

We are a couple in our late 30s with 2 young kiddies (1 in school) that are looking to buy our next PPOR (budget ~$1.5) with the view of buying a really run down free standing house and that needs a lot of work (hubby is carpenter/handyman/painter). This would be our stepping stone home to 'flip' within a year if we could get the right price, or keep for longer if market isn't there yet.

At the moment, we are looking at Earlwood, Bexley/Bexley Nth, Kingsgrove, Bardwell Park & Valley although we would love to be in Marrickville/Dulwich Hill/Tempe area, but its too $$ for what we want (free standing house with garage).

Other option is looking further south - Mortdale, Hurstville south and penhurst or even Kogarah and Carlton.

Where would you buy and why?

Thank you!

 

I would buy in an area that I'd like to live in. An area that has the facilities that I'd like to go to. An area that has good access to transport and medical facilities.

 

Definitely here.

Don’t worry about size as you have a very young family. A friend bought in Marrickville 6 months ago at $1.2m price point and the place was rented out at $770pw before settlement. Unless the market has significantly moved, $1.5m should be a comfortable starting point for the suburb.

 

I wish I could find something there, but we need a garage for hubby's tools and that is near impossible to find in those suburbs within the price range unless its on a busy road, which we don't want to go to with the small kids.

 

Hi Katty Coco,

You have good taste and those are good areas. And while the devil is in the detail, and we don't know your requirements exactly, I also agree that you would be priced out of the Marrickville area at a budget of $1.5m for a detached home.

At your budget, I think the St George area (Carlton, Mortdale etc) will give you the best chance of finding something that would work (these areas were briefly achieving $2m+ late last year, but have come back to Earth). The Bexley area and surround would also work from a budget perspective. The only thing I would add though, is that these areas have fairly divergent demographics, so you need to have a view on what you like and what you don't like.

Best,
John

 

wow john, you think st george area declined 25%+ already ?

 

Ha, I knew this was going to happen. No, I don't think the median price has declined by 25%, but I personally attended auctions in the area in October that went over $2m that would not achieve this today. I am talking about one offs vs the median.

 

ok makes sense... im not familiar with the market there, i was surprised to read that at first.

 

Not sure where prices are but I would also throw Croydon, Croydon Park and Ashbury, Mascot and Botany into the mix.

We also know a few people priced out of the Inner West who went into choice pockets in Rockdale.

Left field suggestion would be the Shire - very family friendly and you'll get space but if you're Inner West kind of people then....

 

I'm also looking to upgrade in these areas in the next 12 months. Possibly Sans Souci, Kogarah Bay etc.

On the ground feel is it has peeled back 10% from peak, not more. The challenge is there are lot of poor quality properties now hitting the market, so median will look like $1.5m but its not exactly like for like.

There will be another 10-15% if rates get to 2.50% by end of year. Which lands back at pre-COVID levels.

 

Hi John,
You hit the nail on the head! I think for us it is about demographics/community and a central location where hubby can travel around for as he does alot of strata mainly in Inner west, east and north.

I lived in Bexley North and Earlwood and didn't mind the areas, but you are spot on when you talk about demographics. We lived in Mascot for sometime and loved it, so looking for something with similar mix.

Mortdale, looks like a lovely area but it is further commute for hubby and I have no clue about the demographics towards that area.

 

I like Ashbury, Croydon & Croydon Park and grew up in Mascot/Botany so love the area too, but I don't think we can get in for the budget we have. The shire is a little to far for hubby to travel to at the end of the day and further from the city which we like.

Rockdale would be a possibility too

I guess if its a flip, which area will well sell the best once we reno is one of the main questions we are asking ourselves too...

 

Probably the likes of Marrickville, Dulwich Hill etc.

Well, talk to a few brokers. Sometimes, stretching your budget is wiser than settling.

 

I've bought for clients in just about all of the suburbs mentioned: Croydon, Marrickville, Carlton, Rockdale, Dulwich Hill etc. I would say that for $1.5m, Mortdale, Carlton or or the Shire. Otherwise, you would need to consider a semi or townhouse. In the Inner West, though $1.5m would only cover a townhouse, not even a semi. It's a good budget though, and the market is definitely in transition. But $1.5m is also a a very crowded segment of the market.

 

John, for me the thought of paying $2m or $2.5+ for a good quality house in St George area and San Souci / Kogarah Bay is hard to accept.

Where same or slightly high prices will get you large block with quality older homes in St Ives, Pymble etc.

what do you think?

 

Just wait about 12 months.... I reckon you will see under $1.4m in Marrickville...even Newtown.....just the single fronted semis.

 

I hear you. Firstly, the median prices in Pymble and St Ives are $3m+, whereas most of the St George area is sub $2m, so they are not really comparable.

Sans Souci (bought there also), is interesting because it has really come alive since lockdowns, as a beachside alternative to the Northern Beaches, at a much lower price. It will never match northern beaches because these beaches are inferior, but the lifestyle is still nice. Medians are obscured in Sans Souci due to the prevalence of villas.

So overall, I don't think the price points for the areas above are directly comparable and therefore, these are not really alternatives. However, I actually think that the St George area is the most mis-priced area in Sydney: close to hospitals, transport, beaches, the city etc.

 

Thanks Sash. Maybe. I've bought semi's in Marrickville and on the ground, they haven't been $1.5m in a few years. But we'll see.

 

Yes, beach is a loose term for what is around San Souci.

My theory is its under valued because of the airport noise and demographic biase. Being mostly migrant (some post war, others more recent), the old money in Sydney doesn't come this way. However, as lots of these migrant and their kids are now well established, will see prices keep going up. E.g. the San Souci and surrounding areas

 

Yes, Sans Souci also lagged historically due to poor transport and no train line. So it was popular for owner occupiers, but not investors. That's changing since lockdowns and WFH.