NSW Thoughts on Rockdale for PPOR FHB.

Discussion in 'Where to Buy' started by Steve_M, 15th Mar, 2020.

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  1. Steve_M

    Steve_M Member

    Joined:
    30th Jan, 2020
    Posts:
    7
    Location:
    Sydney
    Hello,

    My partner and I are looking for our first PPOR in sydney. We are looking for a 2/1/1 apartment. A place which we will be happy to live for 5 -10 years before upsizing. We will be having a family so that will also come into consideration. I will be looking to get an offset account with the view of potentially turning the property into an investment further down the line and/or using some offset cash for stocks and shares.

    After being priced out or some other areas we would have preferred to buy, we decided to focus on the SE sydney stretch between arncliffe to allawah corridor due to its proximity to the city. We are looking at a budget of 600-650k which i know isnt a great deal of money for sydney so i was hoping for some input.

    Some of our asks are;

    * close to train transport and amenities.
    * safe area and decent for families.
    * Probably a unit due to our price range.
    * 2/1/1 layout.
    * 30-45 mins commute to North Syd / CBD areas for work.
    * Reasonable district for education.

    I have been looking around the areas and rockdale seems to be a decent option for us. Its relatively close to the city where we both work, beach, airport, transport and has plenty of shops/amenities. However, i have noticed prices have increased 50-100k for the same properties in the same buildings over the last 6 months alone. I was looking at a property recently which i liked. The same layout apartment in the same building went for 550k 6 months ago. Another went for 600 in the same month. now another vendor has a guide of 600-660k but the agent said the vendor wants 660k for the same apartment. i know there can be an increase but 50-100k+ in 6 months seems a bit excessive.

    We will be using the FHB stamp duty exemption / discount. I have checked the online calculators and it looks like we will save 20k on this price range.

    A lot of people are telling me to wait to see what happens with the coronavirus and how it affects the market. However, if interest is dropping and the number of people looking to buy is reducing, i feel like now would actually be a good time to get in with less competition because i am looking to buy and hold over the longer term.

    I was hoping you could all help me with some questions i have.

    1. Do you think rockdale is a good place to buy? What are the reasons for your opinion.

    2. with the amount of new units coming online in rockdale, do you think there will be an over supply?

    3. Is there any chance the new services and amenities from the new builds in the area will increase the value of the property?

    4. Other than rockdale, what other areas would you recommend if there are "better" options.

    5. From my research it looks like most people agree that sydney would have limited capital growth. Would this also apply to an area like rockdale or is there a potential for some growth there due to its current price range?

    6. Is the 50-100k increase over the last 6 months justified? how is this determined? Would you just look at recent sales in the area? If so, what resources do people use for this.

    7. If the seller has a range of 600-660k but the agent states the ask is 660, how would you recommend approaching this? Would you just place a bid on the lower end with the view to possible meeting in the middle somewhere? What approach would you recommend using?

    8. i assume an offset account with the view to use the PPOR as an investment in the future is the best way to approach this first buy with my aim of turning the property into an investment long term?

    9. Does anyone have any recommendations on who to use for pre-assessment building checks? How much do these normally cost?

    10. What is the standard of schools like in the rockdale area?

    11. As i will be using the FHB stamp duty discount/exemption, should i allocate the money we save on stamp duty and put it towards the unit cost?

    12. What is the best way to determine if you are over paying for a property?

    13. Whats your thoughts on the current corona situation? Is now a good time to buy in your opinion?

    Any other inputs / suggestions would be greatly appreciated.

    Cheers
     
  2. TimeToBuy

    TimeToBuy Member

    Joined:
    17th Mar, 2020
    Posts:
    7
    Location:
    Sydney
    My sister just bought a IP unit in Penshurst. Older style unit, no fancy gardens/pools/lift etc.

    She paid $590k.

    It’s close to stations, shopping village, approx 20-30min drive to beaches, national park.

    Only about 10min drive or 5 min on the train to the big shopping centres at Hurstville.

    Also unit construction at Penshurst is minimal compared to other areas.

    I drive thru Rockdale daily, it is unit central around the train station and there’s at least 6 major unit developments under construction in the neighbouring suburbs around train stations.
     
  3. Trainee

    Trainee Well-Known Member

    Joined:
    24th May, 2017
    Posts:
    10,256
    Location:
    Australia
    You just said growth will be limited and that price increases seem excessive.
     
  4. Propertunity

    Propertunity Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    3,476
    Location:
    NSW
    Your questions are quite intelligent and well thought out.

    That’s quite possible.

    Yes, over time but not in the short term.

    Most people get it wrong most of the time.

    Why would Rockdale be immune to any downturn that the rest of Sydney might suffer from?

    Was the fall from 2017 to 2019 justified?
    The market does what the market does. It’s a function of supply and demand along with fear and greed.

    Comparable sales.

    Yes and Core Logic RP Data or APM Pricefinder on subscription.

    Yes probably.

    Ask closer to the time you need them. Pest & Building report is generally around $600. For a unit you also need a Strata Report at approximately $250 - $500 usually.

    Check comparable sales. Hire a Buyers Agent. Lastly the lender will commission a Valuer. If the valuer thinks you’re over paying, the lender will not approve your mortgage application.

    IMO now is a great time to buying while everyone else is fearful.
    All the best.
     
    Last edited: 17th Mar, 2020
  5. Big Lez

    Big Lez Well-Known Member

    Joined:
    8th Mar, 2017
    Posts:
    75
    Location:
    Sydney
    Me personally, I would probably wait at least a month or two before buying. I think developers will be in a lot of trouble in coming months and they might be desperate to let units go at rock bottom prices.