NSW Where and What to buy

Hello all,

I am completely new to real estate and now trying to get bit of a knowledge.

I am thinking of buying of investment property in Sydney. I am thinking of suburbs like Oran Park or Marsden Park. What are the things that I should look into while buying it. For now I came to know that I need to look like what is the neighbourhood like, school rating, near to shopping centre, near to Public transport, if the area is in flood zone or bush fire.

Also what is would be better buying a already build house (new, 2,3 years old) or buying a House and Land Package.
Not really sure about H&L package how does that work.

Thank you

 

What would you say to a 40 year old weatherboard house?

 

I would say sold if you offer it for the right price....tell me more....I am not a snob wanting something new so my tenants can totally trash it

 

There are plenty of discussions on those topics and I would suggest that you start with the search bar in the top right corner.

To give you some quick guidance, imho:
- You should never buy a house & land package for investment purpose (even when you take into account all the tax benefits etc.). If you run the numbers properly, you will alway end up losing money by investing in new properties. The scenario where you would consider buying a house & land is when you look for your PPOR and you prefer living in brand new houses.
- For a particular location, timing is more important than suburb selection. It does not matter where you buy (whether it be Mount Druitt or Manly) for a particular city. What does matter is WHEN you buy in a certain location.

I don't think this year is the right time to buy an IP in Sydney. It's likely that we will soon hit the peak of the market. From a risk vs benefit perspective, it's probably a lot less risky to buy somewhere else that has just taken off.

 

what were your predictions in sydney for 2017, 2018, 2019, 2020 and 2021?

 

I bought in Brisbane in 2019.

I bought in Sydney last year during the lockdown when everyone was predicting a 15-25% downturn. I bought it cheaply because those properties were just sitting there and no one was looking to buy.

I bought two properties in a coastal city in North Queensland this year.

Is it possible for me to be wrong? Of course! However only time will tell.

No one has the crystal ball. It’s impossible to pick the top. But it’s possible to analyse the risk and weigh up different opportunities. Sydney has gone too far into its current cycle and it's just not worth it. Most of the suburbs in Greater Sydney have moved up at least 120-130% this cycle according to RP Data. In the meantime, a number of locations with good fundamentals have just taken off. The rental yield for a Sydney house has dropped below 3% while you can find places with good fundamentals and ~5% yield (I never buy because of rental yield. But 5-6% rental yield means I can hold them more comfortably). Which one is more risky?

 

Thank you all for the response.I will go through all the posts and will find any related post and have read through.

 

which areas are "has just taken off"?

 

Think they meant to say "some areas have taken off over the last 12-18 months after years of stagnation so they are at the beginning of another growth cycle."

Cities and towns along the QLD Coast, for example.

 

As others have mentioned, as a general rule of thumb steer clear of anything new. If I was in your shoes I would research and educate myself as much as possible in the short term to avoid making any big mistakes moving forward. Purchasing the wrong asset can be detrimental to an investor as it takes time and/or money to fix your mistakes.