NSW Townhouse in the Hills vs established house in other areas

Discussion in 'Where to Buy' started by Prop_invest, 27th May, 2019.

Join Australia's most dynamic and respected property investment community
  1. Prop_invest

    Prop_invest Well-Known Member

    Joined:
    23rd Jan, 2019
    Posts:
    77
    Location:
    NSW
    Hi guys,

    My wife and I are FHB and have been active in the market for a while (since early April) and given our budget ($850-900k) we have come up with two options:

    1- Townhouse in the Hills area (Castle Hills or Baulkham Hills)
    2- House in Kings Langley or Glenwood (these are the suburbs that we liked and are in our budget but happy to consider any other suburbs if you have suggestions).

    We liked the Hills area more than other suburbs. And for schools, it sounds the Hills are better ( we don't have kids yet we are planning to have one within a year or so though)

    We were hoping the prices would fall a bit more and we can save a bit more to afford a house in the Hills however as it sounds market is bouncing back and we are getting nervous to not miss the bout :) so maybe need to decide and buy before it is too late

    Putting emotions aside, which one do you think would grow more in the next 5-10 years? Which strategy would help us more to reach our goal (having a house in the Hills) sooner?

    Apart from strata, is there any major difference in out of pocket costs between house and townhouse, i.e. city council, water rate, insurance?

    Our financial situation might change in the future (my wife's income may increase) then we can afford more. If we think about turning any of these options to an investment then which one? what shall we consider now?

    Sorry for the long post
    Thanks for your help
     
  2. Shawn

    Shawn Well-Known Member

    Joined:
    26th Jun, 2015
    Posts:
    420
    Location:
    Sydney, NSW, Australia
    I grew up in Glenwood and have many friends who grew up in Bella Vista, Castle Hill & Baulkham Hills.

    With the new Metro which just opened on the weekend takes Glenwood & Kellyville Ridge to another level.

    These suburbs now have very good commute options :

    1. T-Way from Blacktown to Rouse Hill
    2.T-Way from Rouse Hill<>Parramatta
    3.Metro to Rouse Hill<>Chatswood
    3. Buses from Rouse Hill<>City.

    Suburbs like Northbridge etc which are closer to the city have very similar commute times in the peak hour without such good transport links.

    Thus, I'd go for house over a townhouse in the same price range and with the large Indian community holding up prices for walking proximity to the Gurdwara (Sikh Temple) I don't think Glenwood is a bad bet at all.
     
  3. Prop_invest

    Prop_invest Well-Known Member

    Joined:
    23rd Jan, 2019
    Posts:
    77
    Location:
    NSW
    Thanks Shawn.

    How would you compare Glenwood to Kings Langley?
     
  4. Joker

    Joker Active Member

    Joined:
    20th Jun, 2015
    Posts:
    43
    Location:
    Sydney
    I live in Kings Langley. It’s an older suburb than Glenwood so older houses but sitting on bigger blocks of land. Both good suburbs.
     
  5. Prop_invest

    Prop_invest Well-Known Member

    Joined:
    23rd Jan, 2019
    Posts:
    77
    Location:
    NSW
    Thanks Joker for your reply.

    Are there any pockets of KL that you may suggest to consider or avoid?
    Are there any social houses in KL or Glenwood?

    Thanks
     
  6. spludgey

    spludgey Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,483
    Location:
    Sydney
    Buy a crappier house on a nice block in the Hills. That's what I'd do.
     
  7. Prop_invest

    Prop_invest Well-Known Member

    Joined:
    23rd Jan, 2019
    Posts:
    77
    Location:
    NSW
    We looked at this option a lot (and that was our primary goal) but the houses are very bad and we cannot live there in that condition. Spending at least around $50-100K on renovation sounds wasting money as most of these houses have to be nocked down soon. Plus there are lots of risks for doing the renovation as this is our first house.

    For instance, this is what we can get for $850k in the Hills.
    25 Owen Ave, Baulkham Hills NSW 2153 - House For Sale | Domain


    if it is a slightly better condition then it is around $950.

    There was one option which was close to our budget and liveable but it was close to M7 (the fourth block from the highway) and it was noisy.

    We hoped the prices would drop more and we can buy something old but livable for $900k but as the market changes we are thinking if don't buy now then we may not be able to buy even in KL with our budget later.
     
  8. Cate Bell

    Cate Bell Well-Known Member

    Joined:
    7th May, 2019
    Posts:
    221
    Location:
    Australia
    That is a great location. I have lived in a lot worse when I bought my first home. Probably a bit of a difficult one in terms of negotiation since it is a public trustee. But if you want good condition, it isn't for you. Good luck.
     
  9. AAA2214

    AAA2214 Well-Known Member

    Joined:
    16th Jan, 2016
    Posts:
    336
    Location:
    Sydney
    Did you check out Quakers hill?

     
  10. Joker

    Joker Active Member

    Joined:
    20th Jun, 2015
    Posts:
    43
    Location:
    Sydney
    I think all of Kings Langley is good. There are no social houses I’m aware of in KL. I doubt Glenwood does either. Near by Lalor Park does.
     
    Prop_invest likes this.
  11. Prop_invest

    Prop_invest Well-Known Member

    Joined:
    23rd Jan, 2019
    Posts:
    77
    Location:
    NSW
    Thanks for your comment.

    What is especial about QH? I thought KL is better than QH, isn’t it?
     
  12. Cimbom

    Cimbom Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,568
    Location:
    Back in Canberra!
    What makes you think the market has changed or is changing?
     
  13. Prop_invest

    Prop_invest Well-Known Member

    Joined:
    23rd Jan, 2019
    Posts:
    77
    Location:
    NSW
    Sounds there are more people in the open homes. Everyone is saying house prices would go up. Many houses we inspected last couple of weeks are gone now.

    I know it is more emotional rather than be evidence based. But the all announced changes ( interest rate cut, more lending) make me think houses would get more expensive.

    Am I wrong?
     
  14. Trainee

    Trainee Well-Known Member

    Joined:
    24th May, 2017
    Posts:
    10,256
    Location:
    Australia
    Thats the funny thing about sentiment. Its all about how people feel.
     
  15. AAA2214

    AAA2214 Well-Known Member

    Joined:
    16th Jan, 2016
    Posts:
    336
    Location:
    Sydney
    I hope you are not just looking at the house and are considering other things like transport connectivity to CBD, schools, shops etc
     
  16. wombat777

    wombat777 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,565
    Location:
    On a Capital and Income Growth Safari
    There are some great 3-bedder houses located a 5 minute walk from Rouse Hill Town Centre and about 10 minutes from the Train Station. A good area for capital growth because of the train station and town centre.

    They are actually houses ... not Townhouses ( although on small blocks ). They are $829k to $865k ballpark.

    16 Romney Street, Rouse Hill, NSW 2155

    34 Caddies Boulevard, Rouse Hill, NSW 2155

    4 Romney Street, Rouse Hill, NSW 2155

    ( the better ones are the two in Romney Street as they are closer to the station and don't get the traffic noise from Caddies Boulevard )

    Some recent sales:

    2 Romney Street, Rouse Hill, NSW 2155

    19 Bascule Street, Rouse Hill, NSW 2155

    Some vendors have started to set high prices ( will be interesting to see how they go with these sales):

    6 Bara Way, Rouse Hill, NSW 2155

    21 Bascule Street, Rouse Hill, NSW 2155

    Fabulous walkability of the general area and the Town Centre.

    They have just added a footpath (marked in yellow below) which provides another easy-walk option for getting to the train station. This runs beside the local Cafe and connects up with the cycleway the runs under the viaduct to Rouse Hill Train Station. There is a High School and Primary School located just a walking distance away over in Beaumont Hills.

    This part of Rouse Hill is community title and I pay $154 a quarter to a sinking fund. That helps to cover maintenance. There is also a community centre, pool, tennis courts and gym that I could use if I wanted to.

    Screen Shot 2019-05-30 at 7.16.34 pm.png
     
    GenericName likes this.
  17. MWI

    MWI Well-Known Member

    Joined:
    17th Jul, 2017
    Posts:
    2,287
    Location:
    Lower North Sydney NSW
    This is such a good buy for cosmetic renovation just on very high level preliminary observation, you would need to do so much more, so take my comments lightly here please! Just because they ask for $850K doesn't mean you need to offer that, could offer lower and would certainly need to get a building report.....
    A corner block, nearly 700sqm, seems great tired property for renovation with structural bones, higher ceilings...
    Many differences between a house and townhouse, I would buy a house always above townhouse since I personally prefer to have TOTAL control over the property:
    - I have total control over the renovations decisions and costs and the bills (townhouses need to pay strata, maybe admin fee, cannot renovate outside or common areas, within certain hours, renovations must be approved...may take extra time, may pay common water bill if not metered separably, etc...
    However to do this you need some experience and expertise and since you mentioned you are FHB I would worry to advise you with what I suggested above....?
     
  18. Prop_invest

    Prop_invest Well-Known Member

    Joined:
    23rd Jan, 2019
    Posts:
    77
    Location:
    NSW
    Yes, we consider all of these factors as we think we would not live in it for the long term and we should either rent it out or sell it in 4-5 years
     
  19. Prop_invest

    Prop_invest Well-Known Member

    Joined:
    23rd Jan, 2019
    Posts:
    77
    Location:
    NSW
    Thanks Wombat777.

    These are sound good. The question is as they are new buildings with very small land size how much they appreciate over years? I feel buying 700m2 in KL would be a better option to buy 180m2 fancy home in RH. Not sure if my thoughts are correct or not?
     
  20. Prop_invest

    Prop_invest Well-Known Member

    Joined:
    23rd Jan, 2019
    Posts:
    77
    Location:
    NSW
    Thanks MWI for your comments.

    Yes as we are FHB we are a bit scared that the renovation would cost more than we estimate. If we buy such a house, our plan is to renovate to be able to live in it for 3-4 years and then knock it down and rebuild it.

    What is the best way to get a good estimate of the renovation cost? does the building report give a clue of renovation cost?