NSW Young Student looking for first IP

Hi guys, been lurking for a while, looking to buy my first IP. I am preferably looking for the price range of a one bedroom unit/ studio apartment in Sydney. My question is, should I be looking in Sydney still or to another City? I am weary buying outside of Sydney due to not being able to see the property and having to rely on a real estate agent if something needs fixing. My primary goals is to have it positively geared so it can pay itself off and allow me to eventually buy another property. Thanks for any responses in advance!

 

Hi Majj
Now does not seem to be a good time to buy a 1 bedroom apartment in Sydney. If you look around, you'll see lots of new apartment buildings being built. When these apartments hit the market there is a high chance that it would affect the prices. Also, have you ran the numbers? I'm not sure that positively geared apartments are around in Sydney.
I would tread with caution in your scenario.
Good luck

 

Hi and welcome aboard

If you decide to purchase interstate you could always look at using a good buyers agent. You don't need to purchase sight unseen either - you can do 90% of your due diligence at home and then travel to the location when you're ready to buy.

Cheers

Jamie

 

I probably wouldn't do the studio as they are harder to borrow for (LVRs capped if under 40sqm) and the capital growth is lower.
1br unit... maybe. If you managed to pick up one at a bargain and with low strata fees but atm they don't really exist. I was lucky with mine near the city, bought for 510k towards the end of 2014, with internal laundry, 2 toilets, very reasonable Strata fees, car space, 3 balconies, plenty of sunlight, not at a busy street location, 4 minute walk to Redfern station.... high demand area. Boom had been going on for around 2 years already... and has continued
Now that sort of price for a 1br is unheard of.
I bought mine, it was supposed to go to auction but it was not sold at auction so I bought it at a very fair price.

I'd say 1 br units near the city are very cashflow positive if it's short term or executive letable.

Anyway... my thought is, finding these gems can be extremely tough going!

If the opportunity to buy something with no competition comes up, consider it. But make sure it's a good property to start with, and if there's lots of competition, don't be afraid to let it go, just keep looking.

I was initally looking for a 2br unit in Parramatta but nothing was coming up in the part of Parramatta I wanted, and the prices had already gone up to high 4's when not much earlier they were in the 3's. So I changed tactic.

Buying interstate could be a good option... plenty of other capital cities sell decent homes with land at the 350k price point. Relatively decent cashflow too. Btw. I would keep all loans IO only... keep your excess cash in an offset account.

 

Hi @maij34 I would be careful with units in Sydney especially studios as financing ca be hard ending on the total sqm. You will be paying a premium price and it won't be postively geared. Plenty of other viable options in regional NSW, Adelaide and Brisbane.

 

I feel like every other city is set to boom except Sydney! Do you know any reourced I can look st to gain a understanding in the areas? Another capital city looks great, just ehere ...

 

I've been buying in Northern Adelaide at the moment getting cash flow and equity As always its dependant on your strategy. If you head to the where to buy section, there are plenty of state and select area threads with plenty of good information from people on the ground and people investing there.