NSW Where to buy IP in Sydney with $1 million

Hey all, I'm looking to buy my next IP in Sydney!
Recommendations please for areas to look into

 

Blacktown
Penrith
Macquarie Park

 

Imho, most of the areas have had their day for capital growth so you're going to have little growth for many years and also have low % returns on rentals.

Unless you are considering apartments/townhouses/semis/duplexes, $1M won't get you within 20-25km of the city.

 

A bit too vague here, but go as blue chip as you can I guess. Although hard to justify Sydney right now.

 

Hi @Moltzerman, if you are free on Thursday night, come along to the Ranch Hotel at North Ryde, we are having a meetup.
I'd also want to know why you are considering Sydney, considering we've gone through a massive boom for the past 3 odd years....

 

Take that 1 mil and buy 1 in Bris and 2 in Adelaide. Buy in good to gentrifying areas, bmv, some add value potential. But I know nothing of your situation, goals etc so very hard to say. I do know I would be thinking twice about Sydney. Assuming you're in the growth phase, I would want to get biggest bang for buck with the least risk and greatest potential for growth to then duplicate asap.

 

Yes, I've been wary of Sydney's market, even though there may still be up to 1 more year of strength. I'm more knowledgeable of the Sydney market than elsewhere. Melbourne/Brisbane is probably a better investment option, but I haven't done too much research into either cities.

 

With young kids, I'm looking to buy an investment property for their future, if they need. That's the main reason why I'm looking local in Sydney!

 

@Moltzerman - I would think a house - future development site would be a good option. You can get a duplex site to a high density future development site in that budget between the Parramatta region and Penrith. Depends on your goal.

As you have acknowledged Sydney is quite hot at the moment and as such the purchase will be negatively geared assuming you are borrowing the bulk of the funds.

What areas have you considered?

 

Not the best time to buy in Syd but if you have to dip your toe in now, and if its a possible future PPOR for example, then perhaps try and snare a 3 bedroom unit in the East/Lower North Shore/Northern Beaches.

 

I proposed this question to my accountant 1 month ago...he said Paramatta...but he was suggesting units (for my budget)...maybe have a browse around there and surrounding suburbs. I also recently read or heard on radio that Paramatta is set for a lot of upcoming development...worth a bit of research. Good luck.

 

Im considering buying an aaprtment in Rozelle, Lilyfield and waiting for the development of White Bay

 

I was like you 6-9 months ago. Read through all the threads here, own research, piggy bag other people research and bought in Brisbane inner outer south. But Sydney market has continued to surprise us. And Brisbane market may have been slower than we would hope. Our goal is for long long hold so just wait and see for next 3-5 yrs. We are time poor persons and just started learning how to manufacture CG... now facing the same question again with new pre approval... Maybe Melbourne?? Sydney a safe bet for long term?? Where to buy next!!?

 

If it was my $$ I would be looking at North Sydney. About 950kms from the city center. Some good places going cheap.
Other alternative may be the south west of Sydney. Look around 1,350kms out. $1mill will get you a lot of value.

It's my 2c

Blacky

 

The only part of Parramatta Id buy a unit is the part North of the River, near Macarthur girls High and over to Smith St. Its really quite expensivecthough

I don't know how much your accountant knows about property investing, but I really wouldnt do that. 1. Parramatta apartments are already very expensive. I considered buying there in the second half of 2014 but the prices had already risen by too much. 2. There are a lot more apartments to be available really soon. Have you seen the really tall buildings? Its got to hurt the future Capital growth and rents in Parramatta. Instead of putting 500k or so into a 2br Parramatta unit, i'd look to buy a 3/4 bedroom home on land in or around Blacktown, with a price tag of around 600k. Its a little further out but you get a good train service and you get a block of land for only an extra 100k which I reckon could be worth a lot in the future.
Anyway, do your own due diligence...

 

I get a laugh out of reading the responses here
(thanks for the laughs, *970kln nth/sw) Thanks

Not because they are incorrect, more so the perspectives

Do agree that outside of Sydney may bear greater short term gains
(but do see slow and steady growth, without the boom, for the future)

For a lot of people, property is a longer term gain, building a portfolio, not only that, but we all have differing perspectives and financial goals

I bought OTP in Heathcote NSW, because it is a smaller community, hemmed in by national park limiting growth, close to train station, supermarket, pub, primary school, and not that far from secondary school, yet all close to the Hwy. Engadine has/is having growth, and the travel time is considerably less than Wollongong and further

Each to their own circumstances, it comes down to DD, or an area/market you know, the build/quality and your plan/how long you plan to hold

Am choosing to be "in" for the long term gains ( and not be one of the "I should have's"), as opposed to making some short term flip for the $$s

Who knows, we may leave something for the kids to live in one day
(or spend it all on a Mid North Coast Beach Front, much to the of the kids.......... )

 

I am in a similar situation as I am looking for another IP around the 650k and I am looking around Blacktown , Penrith , Prestons ,areas as I would like to move into it in a couple of years . But everyone says invest interstate you will get a better return for your $ and get more for less outlay.
Do I take the leap and invest interstate hoping the Sydney market doesn't keep going up like it has and not being able to afford something or just buy something in syd and accept and wont be making and $ except a tax benefit .

 

I'd buy Blacktown - it's the best option in my mind with the combination of affordability, location, transport and with good future potential. But there's a possibility you'll hit the NSW land tax threshold if you own it.

 

The issue with Sydney is the rental yield is so poor at this stage of the cycle that you will incur holding costs. You'd expect rents to catch up but with the over supply of units coming we are yet to see the effect.

Agree that it may be another option to invest interstate and then bring the money back to Sydney. It may give you:

1) neutral to positive cash flow depending on what you look for
2) greater likelihood of increase in value given other markets follow Sydney and
3) ability to spread the vacancy risk between multiple properties

If you won't live in it immediately then take emotion out of it. However I can understand the fear of missing out factor - that's so understandable for Sydney siders.

 

I reckon house would be tough in that price in Blacktown? Going by Mount Druitt.

Dev site purchased in 2013 at 436k is now valued at 730k.