NSW Where to buy in Sydney - advice needed

+1 for pull out of equity idea

 

@Befuddled How about the Wentworth Bridge plan ? is there any date of completion ?

 

@Gockie Thanks for sharing the great experience here with us. SO it seems if we bought the IP or even PPoR in the wrong timing (such as now 2015 in Sydney), then it may not be profitable in a long time until it grows in another boom cycle.

 

I don't know when the bridge is scheduled for completion and frankly don't care too much. Wentworth Point developments is only going to compound the high density footprint of the area.

A year ago I had a walk around Rhodes. Nice area with a new feel, I can definitely see the appeal to young renters. However these were the red flags I identified:

1. Traffic congestion during peak hours. 1 lane roads leading and turning onto Homebush Bay drive. Difficult to rectify as roads can't be widened easily.

2. A lot of buildings are 20storeys+. This is huge. It's one thing for an area to be filled with apartments that are 5-6levels but when most buildings are 20+ and the surrounding infrastructure can't keep up with the density, you have problems.

3. A number of cranes and scaffolds in the area indicating construction of more of point number 2. Wentworth Point is doing pretty much the same. Building a bridge will facilitate resident access to the nearby station but will only serve to compound the overpopulation problem.

4. People living there are primarily renters. I think 70-80%. That's too high for me. I like to see a nice spread of owner occupiers vs renters.

While the boom in Sydney continues you won't notice but once the music stops I believe areas like this will get hit the hardest

 

@Befuddled Yes, that's true, I remember sometimes during 2013-2014 Australian Property Investors magazine has stated that Rhodes apartment is over supplied already, can anyone please clarify the actual source, I'm 100% sure I've read about this already.

Mostly I believe the investors are overseas, because for some reason unknown, my friend who work as R/E agent told me the first stage of OTP will be released for the overseas buyer, so if you don't have overseas address, you won't be put into the listing for VIP launch.

FYI: 3 Beds 100 sqM ~ more than $1.1m while 2 Beds is more than $ 800k+
http://www.propertyobserver.com.au/...perty-news-and-insights/28237-billbergia.html --> that was written last year 2014, no wonder price is keep on increasing since this suburb is on the way for major gentrification.

But still, I Wentworth Point is keep on building new apartments until now, there is no close shopping center for groceries and public transport station within 20 minutes of walking.

So I guess the only attraction is the great waterfront living and drive to Rhodes Mirvac for the closest shopping mall.

 

The residex report cost $200+. All it said was that meadowbank was a top 100 postcodes in sydney metro, and it was in the top 15 for units. it gives very limited information: they think it is likely to get 6%pa for next 8 years. and give a 4-star ranking, which means they are sure it's going to happen. it also gives current info, which you get off realestate.com etc.

but after reading the residex report, i am skeptical. it puts bligh park as 3rd best place (for houses). that's why i started that thread, asking about bligh park. but i cannot see any logical reason for bligh park to be included (even with my very limited understanding- i am a newbie), and have since seen that bligh park has been on there previously but hasn't done what they claim to do. Moreover their number two spot is aberglasslyn, which is near maitland. not sure why that is so high. and they don't tell you enough about their rationale and reasoning.

After reading a bit more (suggested books from guys on PC forum), i think doing more of our own DD is much better, and getting advice here is excellent. i don't think i will be buying a residex report again.

 

You got it. If you are going in it to make money, you may as well look where it will boom in the next few years. Buy at the start of the next cycle in Sydney, whenever that might be.
A PPoR purchase may be a bit different, in that profits may not be the most important thing of the purchase. But its so nice if you can buy a PPoR that it goes up $1000 per week immediately after purchase rather than it doing nothing!

As an investor, I think buying 3 houses in Brisbane/Adelaide for the price of an equivalent house in Sydney, or a house for less than the price of a typical Sydney unit and being able to get future gains in these cities feels like a no brainer. You will outlay less money per property and get the growth. Yields are likely to be better too.

 

Hi Gockie, Thanks for your useful advice. I'm also thinking to buy low 2 bedder PPoR unit, but couldn't afford in desire suburb in Sydney.

 

I would say if you don't own any properties, rather than wallow in pity saying Sydney is expensive and you missed out, seriously consider buying an IP first in another state. Be in the market, and get the gains. If you stay out of the market I doubt properties will ever become more affordable.

I have friends who sold a unit in the Inner West 2-3 years ago, intending to use the money to buy a house or something else bigger in the same area. They auctioned their place, got a good price but never ended up buying anything with the proceeds. Now the money they received from their sale would not even buy the equivalent in Parramatta, which is many more kilometres out. Point of this story is that you want to be in a market somewhere, sooner rather than later while prices are going up.