Young FHB wanting to buy in Sydney

Hey guys, I've been lurking for a while thought it was probably about time I created an account to ask something that has been on my mind for a while.

I moved interstate to Sydney two years ago for work after graduating. I've been renting during this time, but now I want to buy my own place and rent out spare bedrooms to help with mortgage repayments/extra cash flow.

I'm on a $75k salary, with ~50k in savings, parents are happy to help me out in any way they can with collateral/deposit/repayments. So I'm putting my budget somewhere around $500k-$550k.

I wanted to get the community's opinion on a couple of options:
1. Continue renting and hold off buying anything
2. Is it worth buying a two bedroom apartment somewhere? Perhaps parramatta which seems to fit the budget? Or is buying an apartment not the best option at the moment due to over supply forecasts?
3. Or is a better option buying a house on some land far out west like Kingswood, Lalor Park or Glenfield? And renting spare bedrooms out there, although it may be harder to find tenants when compared to apartments/somewhere closer to the city?

Thanks for any advice!

 

Lot of threads here covering these issues, it is personal as to what you should do.

If it were me, for a home, I would buy what suited me best, just do not over pay at an auction, although there may be a lot of new units coming up, for my own place that would not matter.

So your question to yourself should be, where do I want to live & do I really want others living in my home.

 

I would buy a house with enough land to build and live in the granny flat and rent the house to help pay off the mortgage quicker.

 

I would consider a 2br apartment in a suburb with good transport as far east as you can afford, but there will be suburbs that would not be where I would like to live so suss that out and take them off the list of options.

You might be able to get closer in than Parramatta.... try Ashfield (if you see places advertised at 580k it doesnt hurt to try to offer 530k) or the southern Sydney suburbs. You may be able to just manage to pick something up in the Northern Districts too. While I like Parramatta, there will be a lot more apartments being completed there soon. So I would try to buy closer in towards the CBD first. Or if you buy in Parramatta, i'd only look in the area between Wilde Ave and Macarthur Girls high school that's north of the river and south of Victoria Rd - this is a pleasant spot, still convenient but all the apartment blocks there are low rise (approx 1980's built), quiet and peaceful yet still close enough to everything. Over the past few years only very few properties in this part of Parramatta have come up on the market so you might need to be patient till one comes up.

I'd say in doing your due diligence watch for sinking fund (does it have much in it?), strata levies and presentation of the complex. Get one ideally facing East or North rather than West or South and look out for noise and local environment factors, and general appeal. Don't worry if it needs a reno - you can do that (or get people to do that) and add value. You can't change factors like noise or orientation though. If buying in Northern Districts (eg. Meadowbank, West Ryde being willing to reno a bathroom or a kitchen or both is probably the only way you'd get something decent within your budget, and you'd be looking to pay around the 550k mark).
You'll probably pick up on other things to consider if you keep reading.

If you choose to go with a house on land, that's fine. Over the long run, house on land in Sydney will be very desirable because the Sydney basin is only so big. If its not in a convenient location you could find yourself moving out after a while to live somewhere more convenient. But that's ok. The demand of land in Sydney vs supply is the reason why its so expensive.

Alternatively, within your budget I know you could buy a 2br townhouse in a suburb like Greenacre which is between Strathfield and Bankstown, within your budget you could buy one of the townhouses that are late 70's built that are on Chiswick Rd or Rawson St, (not the newer ones built in this century). These properties come up on the market sometimes, if you are interested in buying one you might need to wait a few months (put a watch on Domain or Realestate for alerts). Whether or not you'd choose to live there is another consideration altogether. You (or your tenants) would rely on buses to get to train stations if they dont drive. But at least its not an apartment (which are sprouting up everywhere) and you get some land and its not too far out from the city. Handy spot if you need to drive north or south.

Best of luck...

 

Consider this....
2/14-18 Station Street, West Ryde
http://www.domain.com.au/2012983539
It's a trustee sale so if you make a half decent offer it may well be accepted. Even start at mid-high 4's. You might be able to pick it up.

You can make the kitchen feel more modern, bigger and more open. You can't do anything about the size (width) of the living or second bedroom though but its a starting point in a decent area for a FHB and you should be able to pick it up for a price well within your budget. Remove that carpet. Levies should be fine (but check). Note, shared laundry.