NSW Whats a good place to buy ($500k NSW)

Hi all, as above, interested in a good place to buy and would love to hear thoughts as I'm really new. Basically I'm a first home buyer, this comes with the typical stuff (no deposit below a certain amount, grants if I buy off the plan etc). I;m on my own, not expecting a family, no debts etc and I work from home so will only go to the office like once a month (central station).

I'm looking for a place to live for about $400k to $540k, I was thinking way out west, blacktown/mt druitt/st marys area apartment.

Things I need are: be near a train station (i have no car) and a shopping centre (coles/woolies or aldi). And access to drinkable water (i used to live in the country so I have dealt with this before), electricity and internet. I would like a 2 bedroom place though.

I've recently been told though that I should be thinking more outside the box, and looking at places way up north (past Gosford) or south west and go for something with some land. As it may go up in price later and I can buy bigger! Especially as I don't have much restrictions in where to live.

Would love to hear peoples thoughts, maybe places thats good to buy? I wouldn't mind say living in one place for a few years if it means it will go up a lot and I can buy later. But I could definitely see myself living say 1 hr from central sydney for like many years as well. Thanks everyone!

 

Apartment you can buy. A free standing house I would say there is not a single livable free standing house in the entire of Sydney under $550k. Anything advertised under $550k is either a knockdown or requires huge renovations that cost big money.

 

Also OP don't read into all the doom and gloom about apartments. All apartments are being grouped together with CBD apartments and newly built dog boxes and shat on right now cause the flavour of the month are houses. Yes houses are always better, no doubt, but an apartment is better than buying nothing. Houses are going up so much that the house / unit differential can't stay that big forever. Once the boarders open up again and half the apartment stock is soaked up (as they prefer that type of living)...then you will regret not being able to buy an apartment at 2021 prices. Being able to pick up a great apartment in some of the best parts of Sydney for sub $1m means you should still be able to pick up a very nice apartment further out for half a million. Given the insanity of 2% interest rates haven't hit apartments yet, I think there's a reprieve going on that people are overlooking.

 

Yeah, I'm thinking more is it better I go for an apartment now, which is closer to the city but smaller growth. Or is it worth it that I work from home, that I live outside the city (say Gosford/wyong/cessnock or similar) and get a place with land of some sort. Would it be a better move considering I don't really need to be in the city (as much as I love the city).

 

Definitely agreed, while I see the exact same thing going around! The doom and gloom of apartments. But considering I'll need to hold it for 5 to 15 years at least anyway as I pay it back, I do have a hard time assuming its price won't increase in some way at some point by the time I pay it back.
Apartments like you say also give me a good startinig point, I can buy closer to the mid $400K range and pay it off quick, but something with land (not free standing) makes it a bit hard.

In saying that, I've been told banks are evaluating them lower, so I'm worried I go for an apartment, and the bank values it $50K less then I think and I'm unable to come up with the extra $50k or similar.
Cheers for the help mate!

 

If its a PPOR in the city you seek, you wont have to go as far as Blacktown etc for an apartment. Have you thought about maybe a 2 bed apartment closer to say Kogarah or Parra or (ideally) even the fringes of the Inner West, like this?

https://www.realestate.com.au/sold/property-apartment-nsw-croydon+park-134156594

What about a 1 bedder in the Lower NS or Northern Beaches like this:

https://www.realestate.com.au/sold/property-apartment-nsw-hunters+hill-132339686 A1 LOCATION and a good buy IMHO

https://www.realestate.com.au/sold/property-apartment-nsw-lane+cove-134779626

https://www.realestate.com.au/sold/property-unit-nsw-avalon+beach-130957706

https://www.realestate.com.au/sold/property-unit-nsw-freshwater-132516258

Or if you want a city pad, something like this:

https://www.realestate.com.au/buy/property-unit+apartment-in-potts+point,+nsw+2011;/list-1?activeSort=list-date&includeSurrounding=false

Don't delay though. Once the borders are open, I reckon apartments will be the next asset class to take off. Now's a window of opportunity.

Personally I'd go for the better areas ie Lower NS, Inner West, Eastern Suburbs etc. Just make sure its not a high rise, not on a main road, and in an area dominated by houses...the likes of Potts Pt being the exception.

You could also pick up townhouses in the Blacktown area.

Otherwise, you can look in the lifestyle areas eg Orange, Newcastle and surrounds, Blue Mountains (past Mount Victoria), South Coast...but do you really want to live that far?

You really need to work out what you want and what's priority, where you'd LIKE to live etc.

 

Agree 100%. Apartments address a really important problem; supply.

People are acting as if coronavirus has magically fixed the supply problem and houses are the one and only game in town now. Like as if we could just delete them and everything would still hum along.

 

At 500k, I'll take 10 there!

 

Trustnoone I agree with what Lacrim has said. You might also want to look at the older apartment blocks in Meadowbank which is a very nice area imo. The older blocks have been overshadowed by a hell of a lot of expensive new apartments in the area which might limit CG though so do your own diligence.

 

If it's houses you are looking for there's this in Tregear for under $500k list price.
65 Aurora Drive, Tregear, NSW 2770 - House for Sale - realestate.com.au

A few in the price range in Campbelltown suburbs. Some you need to get your hands dirty.
3 Bedroom Houses for Sale in Campbelltown, NSW 2560 - realestate.com.au

 

Wow @skater I'm surprised. The value is amazing when compared to similar distances to the CBD from Blacktown, Quakers hill area.

It's a huge value gap. Wow.

.

 

I went to the Auction for this house. It did not sell due to the land slope its on. The slope is massive, there are even stairs you need to walk down to get to the house. The land will be very prohibitive and undesired.

If this was on a perfectly flat piece of land it would be long gone already for over $500k, possibly even 550k.

 

Not sure if it was because of the land, or the reserve, but there's a few on a large slope around there.

Also, most buyers are FHBs, and they don't usually go for auctions.

 

Thanks so much everyone! I guess I'm looking at the price I am because I was looking for a 2 bedroom. It is worth checking out a 1 bedroom though, especially at the prices given and helps as a starter apartment.

Regarding where to live, for me its less of a where, I'm not super worried about location as long as it goes up in value in some way. I'm more interested in how far it is to the train station, and how far the train station is to central. As well as how far a shopping centre is.

So for me a place like gladesville would be more restrictive then paramatta for example. Still though, I may be too concentrated on trains, and maybe I should better understand the bus system.

I think Lacrim really hits the nail on the head for a lot of it. The thing is since I'm working from home I could live somewhere I hate for a few years if it means gains, even if its not a preference. Since I don't actually have to go into the city (I just like to).

Interested in what people are thinking regarding leppington/austral area as a townhouse? Also definitely blacktown townhouse and st marys town house and wentworthville town houses I'm interested in, hoping the badgerys creek will help boost it a bit? Maybe even a better train line?

 

I have heard this quite a lot, from what I see online, its scared my from auctions. Not that they're bad, but more the fact I definitely know I'm not knowledgeable enough as part of a first home buyer to know what I'm buying without the checked prior to it.

 

I just did this as a hypothetical exercise for a friend of mine, so I could recycle the numbers here as it fits this use case.

https://www.realestate.com.au/property-apartment-nsw-blacktown-135358874

Asking price is $390-419k. Assuming you got it near the upper end of that band. $410k. Assume you have 20% deposit $82k, and borrowing $328k. Mortgage payment per month, investor loan $1456 P&I over 30 yrs (owner occupier would be less but in the example I worked out for a friend I was trying to illustrate the opportunity cost). I'll ignore the calculations about rent; as you'll be living in it.

Given the price trend from 9 years previous to today, the median value of units in Blacktown 2148 suburb had risen from $313,250 to $490,000. Extrapolating prior performance being indicative of future performance (and this can be an errorneous presumption but suspend your disbelief for now) in 9 years time the median price of units in Blacktown would be 766.5k. Making adjustments for today's unit price in this example versus the median price; the same percentage difference in 9 years would predicate the example above having an estimated value of around $640k.

Selling price minus purchase price is roughly $230k gained over 9 years. I used 9 years instead of 10 because we're 1 year into this calendar decade already - again more to do with my previously calculated example for a friend regarding opportunity costs.

This example is not outside the box. It's very much firmly in the box - a typical outer suburban western sydney area that's undergoing quite substantial capital and population growth.

NB: I have a strong personal bias against units/apartments as investments but aside from reading this sentence I hope it doesn't come across in the previous paragraphs/wall of text.

 

This is why I love auctions, and have bought many at auction. There's generally a lot less competition, especially in a slow market, and a home that's less than perfect. Of course, it can go the other way if there's two emotional PPOR buyers involved, but that rarely happens with the homes I usually target.

 

There have been a few new unit blocks built in Blacktown which has kept the price of existing units down.
You can get a 2 bedroom unit in Blacktown for under $400k.

 

Thanks for this, was it hard to find the price trend? I wouldn't mind trying it out in other areas as well, just so it gives me a good line in the sand. Also really appreciate you saying its firmly in the box.
I sort of feel like, as long as I buy really, I should probably get some gains kind of basing off this. Its like, at the very least, it likely won't bankrupt me or worse haha. Helps me feel better since I been a bit worried it being a big decision.

 

Cheers, I defintiely need to take a look. I think i was looking at mt druiit area because of a friends advice, but if I can get something closer, it would be way better!