NSW Where to buy in Sydney - advice needed

We haven't bought a property yet, so this will be our first one.

I need to utilise part of my salary package for housing.
We have about $400k equity in our house. We have about $26k for use on housing (ie towards rent /mortgage repayments or other expenses.) possibly thinking about something around 400k or maybe $600k

I have been reading a lot. Some ideas that we have been coming up with, and are keen to get input.
1. Keen to buy and hold for 20 years

2. Was keen to go in Sydney somewhere as its familiar, will always be in demand over the long term and feels less risky than somewhere unknown. Even though Sydney seems at end of cycle (possibly).

3. Was keen to possibly go inner city 5-15km (not cbd because of high rise apartments) in small unit block, second hand, eg Ashfield, maybe Dulwich hill or summer hill. Maybe 1 bed or 2 bedroom. Realise the significant new unit being built with increase supply, and decreasing rental yield. Yet feels like over 20 years this may go up again and is less risky than going out west?? I am wary of buying in places where lots of high rises are, as lots of supply.

4. We bought the residex top 100 predictions. In our price range, some of the more positive ones for units were meadowbank and Stanmore. This with high predictions -4star and capital gains.

5.And for houses the residex also put places like Bligh park and mount Annan for houses. I get the increased interest in NW Sydney with train going in, and also good white collar work there. good vibe etc. But Bligh park seems too far from this new train link. It's closer to Windsor. not sure why it has such a high predictor. Would work well for our price range. But doesn’t seem as wise as say rouse hill or Stanhope etc. Also I have read in Somersoft that Bligh park was in residex in 2007, and 2013 http://somersoft.com/forums/showthread.php?t=94658. And it hasn't been doing as said. Not sure about mount Annan. The idea of a house in north west seems to have some sense but many median prices are out of our range. tho

6. Maybe we don't need to rush in as yet, as many of you guys have been saying likely to flatten out in near future next few years?

7. some have recommended this book by john linderman who used to work for residex:Mastering the australian housing market written 2011. is it any good? worth reading?

8.Any wisdom on any of these points would be greatly appreciated.
Advice on where we should buy?

 

Stanmore, ashfield and marrickville,etc are good options.

Fringe suburbs of parramatta will have good CG (low entry point apartments)

 

thanks 'be developer'. low rental yields may be the only thing inhibiting us.

 

Those areas look pretty good but I believe that Sydney metro has had it's run for a good few years. Would you look at another city for now, then come back and buy in Sydney again in a few more years?

 

@C-mac

I personally think something with 5 and 6 in front will still have storng market.

 

I think stay away ftom my area of surry hills and darlinghurst..u aint getting value for money..im not sure why you people are beating a path to my door to buy from me.
525k for a shoebox and u still want to buy.

I have one 24sqm for sale if anyone wants it..goulburn street..no parking..410k no offers will rent for $350/400

 

Its great Seal that you have started the research and places like this forum can really help.

If you can find something that ticks the boxes that you have allocated for yourself then jump in.

You know that the market is hot but you seem to have enough understanding to question any potential decision.

 

I thought that Parramatta is already over supplied with the overpriced OTP apartment units ?

 

You'll be surprised. Demand is still very strong. Low rise established unit in a good location is still in high demand. Imo... There are still growth

 

Thanks for the tip mate ;-)

I'll look around for some good IP to be inspected in those area... hope I can get a high yield one 5%+ for the next few years ahead....

 

That's something we'd consider but as a first timer it feels much harder to know anything about another city, Brisbane looks like something others have been thinking is going to grow. I know Sydney yet nothing else, and so to g my head around say Brisbane, feels a really riskier option. ESP since Brisbane has not been growing

 

I Agree.... Sydney is more stable throughout the history. Brisbane will grow, but no one knows how much it will grow. And in Long term I'm almost certain that Sydney will outperform Brisbane.

 

So at the end of the day (or hen you're about to exit the investing career), then Sydney will still be the place to be ?

 

Hey Windyz, What makes you say that about Sydney - history? Or population density, strength of economy or other things?

What's you're gut feel of where to go in Sydney at present with it so hyped?

 

Sydney is an international City, where you cant say the same thing to Brisbane. There are more high pay salary in Sydney compare to Brisbane. There are several big Corporate, that I can name that doesn't exist in Brisbane.

In term of history. I look at statistic from sqm research, realestate.com.au... The median value growth in Sydney has been stable (no fluctuation) even in GFC.

Top world university exist in Sydney and Melbourne. Lots of overseas people will love to put their children to go to the major University in Sydney or Melbourne.

Sydney have multiple mini CBD such as Chatswood, St leonards, Parramatta, Castle hill, etc. Where you don't see this in Brisbane.

From my point of view you just can't compare Sydney to Brisbane (Completely different animal). Sydney is more closer to Melbourne.

Sydney Economic is no doubt the strongest, and we have the most diverse economic compare to other city (Except Melbourne)


Even in Parramatta our second satellite CBD GDP almost the same as Adelaide City, and it's on track to overtake it very soon.

 

Isn't Sydney the first destination in Australia for settling migrants?

 

Having been to adelaide earlier this year. ... i think Parramatta is no comparison. I think Parramatta is way ahead.

 

Max budget $600K I'd be looking at older 1-2 bedders possibly with Reno potential (obviously price needs to be factored in here vs renovated comp) in several Syd suburbs- predominantly those closest to satellite CBDs already mentioned. Keep reading and researching

 

Migrants, if given the choice would go for either Sydney or Melbourne. But for skilled migrants, when they get their PR, are allocated an area to be at for at least the first 2 years of their moving over to Australia.

 

I don't necessarily disagree with anything you said above. The issue is available funds to buy vs % growth remaining in this cycle. Funds are not unlimited. If it were, then a lot would be like overseas investors paying multi-millions for who-knows-what in Sydney and Melbourne. My money is all clean, fortunately or unfortunately
Sydney has moved much more than salaries and this makes affordability an issue in Sydney. Similar in most of Melbourne. Not so in Brisbane.
A strategy that is used often by investors is to use the equity gains in one property to finance another- and Brisbane is seen by many as having more gas in the tank % wise in this cycle over Sydney or Melbourne. This allows the $ to fund the next purchase.