NSW Where to buy in Sydney - advice needed

Discussion in 'Where to Buy' started by Seal, 10th Jul, 2015.

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  1. ej89

    ej89 Well-Known Member

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    By CG percentage or CG itself?
    I think Brisbane will outperform Sydney for the next 10 years due to affordability and they will rebound from the issues they've had
     
  2. poeter

    poeter Active Member

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    While all the investors flock off to Brisbane to buy for short-mid term CG and eventually hammering down their yield, Sydney may benefit some growth in their yield perhaps?
     
  3. WinDyz.

    WinDyz. Well-Known Member

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    Thats your opinion. You might be right, But from what I see in 10 years time Sydney will always be stronger than Brisbane (No comparison)..

    Brisbane yield is already falling to 4.5% for houses in the inner city and rent prices has continue to decline, where Sydney rent prices is still increasing. If i still have the money, I'll choose to invest in Sydney for 1/2 bed old unit around the capital city where i can add value immediately.

    People in Sydney are starting to shift to living in a strata just like US, London, etc. in the future demand on unit/apartment for rent will be very very strong, as people will trade space for lifestyle.
    (You can see this happening already).
    2 bed or 1 bed Unit close to city and in a good location (i.e. inner west, lower north shore, etc) with prices in 600 or 700k mark will be in High demand.
     
    Last edited: 16th Jul, 2015
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  4. JDP1

    JDP1 Well-Known Member

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    Maybe, but brisbane yields are already leading over Sydney. If Sydney's yields rise, it probably won't be significant enough to overtake Brisbanes yields.
     
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  5. WinDyz.

    WinDyz. Well-Known Member

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    The yield in Brisbane and Sydney is pretty close if you look at a unit vs a house.
     
  6. poeter

    poeter Active Member

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    In the longer term, I don't think Sydney will grow that much to overtake but more like Brisbane may lose it's lead for yield if house price rises as much other speculates.
     
  7. HUGH72

    HUGH72 Well-Known Member

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    Apples with apples?
     
  8. WinDyz.

    WinDyz. Well-Known Member

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    Well it depend how you see it.
    Unit cost is about the same as Brissie Houses.

    And if you're looking to buy an IP in Sydney, I don't see how houses stack up at all. The yield is too low + land tax, etc.
    So the way i see it, either i will buy an IP in Brissie (house), Melbourne (unit/townhouses), or Sydney (unit/apartment).

    Imo. House in Sydney is reserved for PPOR, or for those who have alot of spare cash to park.
     
  9. HUGH72

    HUGH72 Well-Known Member

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    Understand what you're saying but IMO the unit yield needs to be considerably higher because BC fees reduce the actual yield. Also the land content is so low you need to be remunerated for this with a superior location and higher yield.
     
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  10. Seal

    Seal Well-Known Member

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    What do you think of the increasing supply around these centres with the high rises hoing up. Maybe this will make an oversupply. This is something I am slightly concerned with. Eg seeing it in Ashfield, a little in Dulwich hill too.
     
  11. WinDyz.

    WinDyz. Well-Known Member

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    Agree, but i prefer have a small quality land content than a large content far away. Yea BC has to be considered too.
     
  12. WinDyz.

    WinDyz. Well-Known Member

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    Not sure about over supply... but I like an old established unit near the station around dulwich hill or marrickville. If i can find one and if i have the money i'll buy it :p

    This is the problem with Sydney. It's really hard to find a good stock in a good location. They're held tightly and very scarce. Thats why i think in the long term it will perform very well.
     
  13. HUGH72

    HUGH72 Well-Known Member

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    Thats the advantage buying units, the ability to buy in superior locations with possibly a premium rental return
     
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  14. WinDyz.

    WinDyz. Well-Known Member

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    I'm seeing lots of professional couple paying around 800-900 per week for 2 bed renovated unit near the beaches. It's just the lifestyle where younger generation are looking to live now.
     
  15. HUGH72

    HUGH72 Well-Known Member

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    Ouch.
     
  16. Attila Zoltan

    Attila Zoltan Active Member

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    IMO inner west sydney is a winner for your time period.

    The downside is you might not find much for 600k even. I grew up in the area, living in Ashfield, Summer Hill and Leichhardt. We all know how rubbish Parramatta Road along this stretch. A dirty bottleneck of a road where every second business is boarded up.

    Look into the West Connex/ M4 East project. It's meant to start in 2016. A tunnel to get the people off Parramatta road between Haberfield and the city. The idea is to remove traffic from that section of road, and really develop the parramatta road fringe. Cafes, bars, live music etc the whole way along. I think I remember looking at rendered plans and they had a nature strip with trees the whole way down the middle. Think I even saw mention of pedestrian only sections, and Light rail?

    All that is likely to come into effect in 10 years or so. What does that say to me? Properties close to Parramatta road are going to shoot up in value when all that redevelopment starts happening.
    Ashfield is a pretty big transport hub, so you will get lots of apartments there. Probably along parramatta road too. But if you buy a few streets back, or walking distance from Parramatta road between Summer Hill and Petersham, you have lots of single storey suburbia where they wont plonk apartments any time soon.

    Thats my thinking. It's where I wanted to purchase my first house, but the budget and runaway prices said no, and I got pushed out to buying in the blue mountains :p Fingers crossed Plan B comes to fruition, and Leura becomes the Bondi of the blue mountains :)
     
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  17. Seal

    Seal Well-Known Member

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    Really helpful thoughts Attila
     
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  18. Special order

    Special order Well-Known Member

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    When Brisbane's economy takes off the shift in outlook will be quite dynamic
     
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  19. JDP1

    JDP1 Well-Known Member

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    Im curious what it is you are after- CG, yields, ???
    I would think there are quite a few better plays for either yields or CG than 600-700k 1-2 bedroom apartments in Sydney, even for 10 year holds.
     
  20. WinDyz.

    WinDyz. Well-Known Member

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    Of course CG.
     

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