NSW Would you buy an apartment in Sydney right now?

Would you buy an apartment to reno and flip/hold in Sydney right now?

 

No I wouldn't. But that's because it doesn't fit into my criteria for my next investment. And for those who do decide to buy a unit in syd now, I hope they would be following some very strict guidelines to protect them.

 

I'd love to know what you think those guidelines are?

Sydney worries me for two main reasons, some suburbs have a lot of new development going on which is great but it is also bringing masses of new apartment buildings with it, and I wonder if we are going to see a correction anytime soon.

 

for the right price I'll buy anything

in current heated Sydney market, will be difficult to buy under market value apartment, reno then flip and still come on top after you account for the buying, holding and selling costs ... that's just my 2c ...

 

only CBD apartments, alexandria, green square should be a worry. apartments in suburbs can do well especially near good local schools.

 

Depends where in Sydney....

South and west....yes i would.

 

Parramatta, Westmead, Northmead, North Rocks, wentworthville and other surrounds?

 

I would.
Inner west, Lower north shore, upper north shore, eastern suburb. Just avoid Green square, alexandria, mascot ,etc.

 

Agree There's still some pockets in the inner west and lower North shore v attractive for young professionals, so long as they are well located to transport, shops and cafes you will do well in the long term (ps, I hold two IPs in the Leichhardt LGA)

 

Leichardt is really good... drive around there... not much new development. Mostly old houses and low rise unit. It will do well in future.

 

No but then again I’m not an apartment type of person. I would never buy one let alone ever live in one.

 

http://www.theurbandeveloper.com/greenland-set-launch-sydneys-leichhardt-green/

 

I saw one of Peter Wargent's graphs recently that showed Leichhardt Council with the smallest number of DAs approved in the last 12 months for units ( I think Parra, Auburn and the Hills had 2,000+ each) It's a Greens controlled council v anti development. That said it will be interesting to see what the NSW Govt does w the revitalisation of Parramatta road which has been on cards for last few years.

 

wentworthville and Parramatta yes...
Northmead - Medium...getting to the top already
North rocks- Not much happen here beside prices going up cos of carglinford...but no real" CG drivers"

 

You need to consider timeframe for Reno? Location, and timing?

Because Syd has been running hot for some time you are now in higher risk territory, no one knows if it will tank in 3,6,12 months etc

What we do know is that it will happen, if you buy and the market tanks what is the plan? Can you hold, service the debt.

When markets tank property prices fall and worse there are no buyers you must hold unless you are prepared to take a loss.

Your call?

MTR

 

That development will be absorb fairly quickly.

Sydney is changing. Unit living is the next big thing. Next generation will prefer to live close to city/cafe/work, etc. Unit/Apartment in a good location and close to public transport will be in high demand in the future for both ownership and rent.

 

I'm looking at Rydalmere and Dundas units close to train stations shops and schools. About 4 km to parramatta.

 

I wouldn't recommend Sydney units - there are far too many in the construction pipeline and there will be an oversupply in a couple of years. Unit prices will fall.

 

Befuddled, I'm Befuddled by that project! It was approved a few years ago and is not as central as it depicts. Actually sits on the Parramatta Rd boundary of Leichhardt LGA, Ashfield LGA and Marrickville LGA

 

These would be my guidelines, it may differ for others.

1. In a smaller block that is not new.
2. Definitely low strata. No pools. No gym.
3. Definitely has room to add value to and manufacture some capital growth. This is hugely important for me. It builds in a scope for adding value in case there is absolutely no short to medium term growth, and given where much of Sydney is on the property clock having the ability to manufacture growth mitigates some risk.
4. 2 bedroom no smaller than 70-80sqm.
5. Obviously in a central location with good infrastructure, transport, amenities and entertainment.
6. Try my hardest to buy below market value but its gonna be very, very hard in this market. That's why I wouldn't be buying a unit in Sydney now unless I was confident I was getting it at a bargain. This meets my own buying criteria.