Townhouse in Wentworthville - what do you think

Discussion in 'Where to Buy' started by ashchay, 10th Oct, 2017.

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  1. ashchay

    ashchay Member

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    Townhouses in Wentworthville/Westmead area for the high $700k and low $800k with high $500 or low $600 per week in rent - should I buy this now as an IP or look elsewhere? Sydney looks to be slowing in CG.
     
  2. MTR

    MTR Well-Known Member

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    Perhaps you answered your own question
     
  3. beachgurl

    beachgurl Well-Known Member

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    a lot of that area is zoned for townhouses. take a look at council approvals/applications to see how many more are in the pipeline. Units are already oversupplied in that area so do your research as to whether townhouses could go that way also
     
  4. Tenex

    Tenex Well-Known Member

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    Sydney and Melbourne are about the only two places that are still considered category 1 with most generous lenders. That means they are the only safe places at present to invest into while other cities start showing signs of going backward *cough Brisbane cough*.

    Capital growth is slowing yes and you couldnt expect it to grow by 10 to 20% year on year but they are not going to fall while other places will.

    Depending on strata fees and other management costs, those aren't bad. You could go a little outer west and buy something with land for a bit higher than that if you have a higher budget.
     
  5. ashchay

    ashchay Member

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    Decided not to go for this property - the rental yield is just way too low to justify.
     
  6. virhlpool

    virhlpool Well-Known Member

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    Makes sense as PPOR though if budget is around that of yours? Other options are new apartments which may have higher strata fees.
     
  7. Property Twins

    Property Twins Mortgage Brokers & Buyers Agents Business Member

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    Established will be better value for money.

    With brand new properties, there is a risk of valuations not stacking up - which will happen based on where the Sydney market is at.
     
  8. virhlpool

    virhlpool Well-Known Member

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    Totally agree but whether they offer the best value yet (i.e. will remain stable OR go down a bit OR keep increasing in price) is a question beyond anyone's guess at the moment. I am particularly referring to townhouses in those areas (Girraween and around) which I find of decent value given proximity to a good school and train stations if the market wasn't slowing.
     
  9. Property Twins

    Property Twins Mortgage Brokers & Buyers Agents Business Member

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    Everyone needs a place to live, so owner occupier is an emotional decision. If a place is one's owner occupier - depending on goals and what stage in life one is at, it may make sense to be paying off own property vs paying rent.
     
  10. virhlpool

    virhlpool Well-Known Member

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    Absolutely, if it doesn't impact my borrowing capacity for IPs in future too negatively. e.g. If I hit the eligibility slab by borrowing for my PPOR in Sydney at this point, I would probably think twice as it can be a double edged sword if the market goes the way everyone is thinking. It won't give me any capital gain (read 'equity') in the PPOR in Sydney in say 3-5 yrs, nor it'll allow me to buy elsewhere until my income and hence borrowing power increases. Decision of purchasing a PPOR for Sydney-based investors has been much easier in the growth period when they couldn't go much wrong financially anyway, keeping emotions aside for a while. Just being cautious before pulling the trigger due to the market conditions. :)
     
    Last edited: 20th Jan, 2018