NSW What Would You Do - Which Area?

This could happen anywhere, but the chances are extremely low. You can even get decent property managers in the big smoke in town up here now

 

Ha - this could happen if the IP was local too. I never drive past my IP's and they're only 50 km away. But if we're talking about what 'could' happen, your PPOR could burn down, or you could have awful neighbours so there's potential negatives to all your choices if you wish to focus on them.

That said, if a PPOR is a priority and IP's are not, then that's fine

 

Touche!

So.. Brisbane is the place to buy? I've never considered this tbh. I suppose we could purchase a few & rent wherever we please in Sydney!

 

Yields are easy to find in the 5% to 6% range, however many on these forums are doing much better. High yields make the properties cash-flow positive.

Choose locations carefully, looking for attributes of the location such as government investment, infrastructure, gentrification and population/employment growth that will help drive capital growth. High yields usually come at the expense of capital growth.

 

That's what we did in Sydney, rented a unit 15 minutes from Central, and continued to research IP's in other areas.

 

I like this idea, but come tax time - is there a way to minimise tax paid for cash-flow positive properties?

I wish i looked at this a few years ago, i was too busy saving to even think about it ha.

What areas should i be researching?

I may as well explore this while I'm at it...

 

Getting a depreciation schedule helps a lot.
All of the other expenses add to balance it out.

 

Most of my clients are still buying in Brisbane. Adelaide is also getting some action, but mainly Brisbane.

 

Well that escalated quickly.. $1,080,000

Back to the drawing board!

 

Wowsers. Bait pricing I'd say. Thanks for the update.

 

That is a bit of difference.
Don't they have laws regarding that in NSW now?

 

option 2
do some research and get lots of quotes, a newbie renovator can easily spend twice as much as a seasoned renovator
100k is a lot of money for reno, you can redo a whole house, add a bedroom, add a second bathroom for less than half
if no structural issue, aim for $35k which should cover basic kitchen (10k max), bathroom (15k max), paint (3k), floorboards (3k) and a bit of exterior work
it will pay off

 

just read it went over 1m
agree with @ej89 consider seven hills, literally next suburb with train line at 30%+ discount

 

Hi guys

So back to the drawing board... PPOR (will be rented for 12 months before hand)

Ideally want a house/townhouse (is a townhouse considered as a house or unit?)

Budget is around $800k min spec 2x2x2 in a good neighbourhood/close to transport.

The closest possible to city cbd.. but im my case.. it maybe 20+km away.

Name your pick for best growth over the next 5-10 years! And why!

 

My pick would be locations that will be close to the extension of the Sydney Metro. This involves conversion of the existing line.

Trains ( driverless ) will be every 5 minutes. Try and get within 10 minutes walk of one of the stations.

Sydenham to Bankstown | Sydney Metro

 

Sydenham to Bankstown is not a terrible idea at all. I'd consider that or Blacktown/Seven Hills.

 

Geez was not expecting it to sell for that much.. We've recently bought a new PPOR just down the road for $1.2m but its a 5 bed McMansion on a larger block of land. My partner thinks we've overpaid, but in comparison to that 'renovators delight' an extra $120k to move straight in, with double the space is a bargain.

 

OMG... this thread reminds me why NOT to live in Sydney. 800k+ for 1st home? No wonder people are in the rat race their whole life.

I'm with @Jess Peletier on this one. Invest somewhere where the numbers stack up & rent for lifestyle for the time being. Having an enormous amount of undeductible debt & a new marriage is not a good recipe IMHO. What happens when children arrive, incomes are strained, living costs escalate almost overnight, heaven forbid interest rates start to rise or the loss of one income.

Nope. Sorry. This is exactly why most people work their entire lives paying a large chunk of lifetime earnings to bankers for undeductible debt. Options 1-4 are all a no go from my point of view.

Enjoy the journey

Indi

 

This is how much people have to pay. A colleague is looking for a home, he has a son going into year 6 next year. Decent areas are around a mil for a full block and what it looks like is that 800k - 900k only gets you something that feels like a villa on about 400sqm of land in Parramatta at best. If you remove all compromised properties (on busy roads etc) you'll find there not a lot of choice on a sub 1 mil budget. Unless you go to Blacktown or further West, or head to the southwest.

 

No... I'm sorry but I have a different view. This is not what people have to pay but rather what they choose to pay. I've lived all up the east coast of Australia & in the USA. I've chosen to live where I do for a number of reasons, a major factor being affordability & liveability. It is a choice.

If people choose to take on near 1M in non-deductible debt, then they have a financially tough path ahead of them. I understand that most of Sydney is expensive. I understand that most people won't leave where they were born or too far from extended family. But that is a choice. We've chosen to make other sacrifices so that we are not financially crippled. Each to their own. I do not intend this to be adversarial, I just have a profoundly different perspective.

Enjoy the journey

Indi