I would be looking at QH, walking distance to the station (within 15 minutes) and larger block with the potential to either subdivide or build a GF at a later stage. Have you started to inspect the properties in the area?

It depends where in Quakers Hill you are purchasing. The problem with Kellyville has always been transportation. Generally speaking a lot of people work in the City and hence transportation is important. Quakers Hill has a trainline which makes the commute easier. The big benefit with Quakers Hill is the ability to develop land. The zonings in Quakers Hill are quite good for subdivisions. What are you looking to do with the IP? Rent or Rent and then subdivide in the future?

Why dont you show the plans to a real estate agent and give some pessimistic figures. He/she will be able to tell you about some recent sales. Also it will not cost you $150 to build – add another at least $70k on top for site costs, DA costs, fencing, concreting, etc. 

Up and down duplex or side by side? Why are you building a 2 bedder and not 3 bedder? Makes a huge a difference in resale. Have you factored site costs? whats the resale value?

I am not a buyers agents but I do have clients investing in that area and I have 2 properties in Wenty. I would personally either spend low to mid $300k on a unit in Westmead with low strata and high rental yield and demand or buy a house for about $400k (will need renovations) in toongabbie. Think about the resale. I doubt you will have too many buyers wanting to spend $390k for a unit in toongabbie. Also re an OTP – do you know the quality of the unit you will get? How confident are you that when the bank does the valuation once it is complete that it will be in fact worth $390k? Don't want to be negative – i just think you can make your money work harder for you through a different property type.

The purpose of the $50k in borrowed funds is used for the PPOR hence it is not tax deductible. So only the $218k is deductible. Speak to your broker or banker about the best structure but best to keep the properties standalone and set up the $50k as a separate facility so that the interest that you want to claim is not contaminated. 

Run the other way as fast as you can for 2 reasons. Firstly off the plan purchases are generally and in most cases high risk investments. Secondly, Toongabbie is not the right market for off the plan units. Duplexes are a different story but certainly not units. With the same money (maybe a little bit more) you can grab yourself a house. 

I would personally go with keeping the existing property and then purchasing another property to potentially build a duplex on. I do have a plan B when looking for duplex sites – that is, the ability to be able to rent them out whilst being able to get the DA. If the DA doesn't come through at least I have the cashflow to sustain the investment. Which area are you looking at?

Go with the Torrens Title. The problem with strata is that you do not have control over the costs associated with the maintenance of the complex. The benefit of a TT is that you have flexibility over what you can do within your land. For example, you do not need to get the permission of the strata manager to tile your balcony. Again torrens title is far better and it has stronger resale value.

Regards

Shahin

I am from the North Shore and have 2 properties within Western Sydney (around Mount Druitt and even South West Sydney). There are some good yields in those areas. Positive cashflow in about 1-2 years. You have to be careful of certain things though when buying in those areas.