NSW Where to buy in Sydney - advice needed

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

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  1. Tekoz

    Tekoz Well-Known Member

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    Which area is that in Sydney ?
     
  2. WinDyz.

    WinDyz. Well-Known Member

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    I think inner west, west and eastern suburb like coogee, clovely
     
  3. Tekoz

    Tekoz Well-Known Member

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    Definitely not in Parramatta NSW 2150 or Pazza as @sash always said :)
    This is not OTP but still it is quite expensive due to people sees Parramatta is the future of Australian city for the next 5 years ahead.

    A crowd of over 100 people, 92 bids for 2 bedders apartment.
    Median 2 bed unit as per RPData is just $545.000, but somehow one existing unit with expensive strata ($1200+ per quarter) is sold for $161.000 above asking price for $781.000
    Source: http://www.realestate.com.au/property-apartment-nsw-parramatta-120020845
     
  4. WinDyz.

    WinDyz. Well-Known Member

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    Tekoz... The median data is always lagging behind. Parramatta will be the next capital city and the demand from both investor and home buyer is very strong there. I wouldn't be surprised if 2 bed will be close to 1 mill in 5-10 years from now.
    My new IP property in Westmead (bought in April 2015) recently refinanced has gained 50-70k in just 3 months(10%+) - Try finding 500k investment which gain 10-15% in 3 months in Brissie. Demand is still very strong and Supply is so limited right now.
    I don't care what other said. I looked at the demand and supply side and i'm also seeing lots of unit sold in the first week of its first advertised(especially the quality one).

    Demand for Rent in here is also Very strong. Every open house i see there are group of 20-30 people looking for rent. The latest vacancy rate is around ~1.5%
    Last year around my area and parramatta rent has is around 380-400 last year for 2 bed unit. If you look at it now its more like 450-550

    Parramatta might be experiencing over supply in coming future, however it will also be experiencing the biggest population growth in the next decade or so.

    Lots of new infrastructure (including multi storey high school, and new UWS Campus) and job (lots of big company already have an eye on Parramatta). Location is also very strategic. It's within 15-30minutes to Castle hills, Liverpool, Bella Vista, MAcquarie park Business District.
     
    Last edited: 17th Jul, 2015
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  5. Seal

    Seal Well-Known Member

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    This is our first IP to buy. We are after capital gains primarily. on our finances, we looked at, if we got yields of say Dulwich hill (3.9%) average, then it is ok now, but if interest rates went up to 8% that would be pretty hard with cash flow. So a yield closer to 4 or 4.5% seems good.

    If that was the case then we could probably go up to 600K

    Thoughts?
     
  6. WinDyz.

    WinDyz. Well-Known Member

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    hI Seal,

    I think you should be able to find a unit in the inner west for around 4-4.5% yield. Try adding value through renovating (small renovation. new paint, new carpet, light, blinds, fix kitchen if its too old, etc), that should increase the yield possibly closer to 5%.

    I don't think rate will go up to 8% anytime soon (I dare to say in 5-10 years).

    Our interest rate are still among the highest compare to other develop country. and we're in quite early in the beginning of QE phase. Look at Japan, US, etc they have been in 0% rate for over 10 years.

    Our economic is relying heavily on China, and china is on the way down. So my gut feeling say our interest rate will be hovering 4-5.5% for at least 5 years.
     
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  7. Tekoz

    Tekoz Well-Known Member

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    @Seal
    Dulwich Hills, that's a gem suburbs, buy it now while you still can this year.
    3 bedders apartment in the area, was asking for $720.000 utp to $769.000 so it is already expensive for investment purpose.

    Plus the strata is quite high $1080 p.q due to double swimming pool and Video Intercom feature in most modern apartment unit for a young family.
     
  8. Steven Ryan

    Steven Ryan Well-Known Member

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    You will be struggling to find a 2 bed apartment for under $650k in Dulwich Hill these days. Unless it has no parking. With a Lock Up Garage you're looking closer to $700k unless it's a dump.
     
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  9. meme plecko

    meme plecko Well-Known Member

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    hypothetical question - say you are buying in Sydney today, and most people expect Sydney to reach the top eventually and stay flat for years, how much CG would you be happy with before the mighty machine stalls? For me, anything above 15% is still OK, another deposit or two created for cheap IPs...
     
  10. Phantom

    Phantom Well-Known Member

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    I too have been to Adelaide couple years ago. I was given a tour of the CBD in about 20 min by car. I'd agree that Parramatta is miles ahead regarding development.

     
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  11. Tekoz

    Tekoz Well-Known Member

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    @York Polides when you ask @sash Pazzamatta is already too expensive :-/ for investing.
     
  12. Phantom

    Phantom Well-Known Member

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    I am aware of that. I was not speaking from an investment point of view. Adelaide seemed very basic to me. Just my opinion. Maybe different story regarding investment.
     
  13. WinDyz.

    WinDyz. Well-Known Member

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    I don't think it will stall for 10 years... maybe short term for 3 years maybe... If you're not buying in a top of market, there're plenty of growth left in Sydney.

    We're seeing massive shift in strata living here in Sydney hence demand is very very strong. I don't see prices stalling for long unless interest spikes up too quickly, but then again if this occur, every state in Australia will get affected not only Sydney.
    Also as i said... rental prices has been growing quite rapidly in Sydney, so demand is still strong for both buying and renting.
     
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  14. Tekoz

    Tekoz Well-Known Member

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    @WinDyz.: I like your positivity mate ;), are you buying again next year in Sydney or go with the experts to buy in Brisbane ?
     
  15. timetoact

    timetoact Well-Known Member

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    Windyz.
    I don't agree. Once the top is in, whenever that turns out to be, there will be sustained period of low to no growth, as per previous cycles. So any new purchases near the top need to be sustainable for medium term including rate rises.
     
  16. WinDyz.

    WinDyz. Well-Known Member

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    Sydney. I choose quality over quantity. Will be looking at coogee or Bondi 2 bed unit close to the beach. There's just scarcity factor there. It's been performing well in the passed and I'm confident it will be in the future
     
  17. WinDyz.

    WinDyz. Well-Known Member

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    How would you know what's the top and what's not the top.
    Everyone was suggesting last year that it's the peak and we're going down....
    Remember there are market within market. I believed there are still growth (strong growth imo) in some market in Sydney

    IMO It's more dangerous to time the market. I rather buy a quality one that has a high scarcity factor and hold it for a very long time.

    Of course everyone strategy is different.
    but I'm still in my 20 and I'm not looking to speculate in Brisbane where i know the market more boom and bust compare to Sydney. I'm not an advocate of Selling or flipping. My goal is to hold for at least 20-30 years and sell few just before retiring (if possible).
     
  18. JDP1

    JDP1 Well-Known Member

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    Yep I agree
     
  19. JDP1

    JDP1 Well-Known Member

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    Windyz,
    This is a common argument amongst those young....hold till retirement stuff , so who cares if it stalls for 5 or even 10 years right..?.. The issue is life happens in between - death, illness, job loss , relocation, marriage, kids, etc whatever whenever ...and all that requires $$. Unless your salary increases very substantially and that too continuously , or you mooch of someone else, you may need to look at equity to fund some of these things. Not to mention other investments ..
     
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  20. WinDyz.

    WinDyz. Well-Known Member

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    Sure of course, but I don't like buying IP where i have to constantly look and try to time the market
    .
    My strategy is to accumulate a few quality IP in Sydney and forget about it. I'm not looking to have 20-30 properties. Just total of 6 of 2 bed unit and I'll be happy. 2 more IP for me and I'm good :)
     
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