I am looking for my third property and can only get my hands on around $400,000. I am looking at unit in Sydney, no positive cashflow but there is growth (so we pray). Does anyone have any suggestions?
Who knows what will happen. Units in Sydney have definitely dropped in value recently (esp new ones), so now may be the time??
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Great work moderators… We do have some great investors in this forum
Tough Deal,
400k will get you at least half the 2-bedroom units in Sydney, I reckon. My preference is inner west and the Eastern suburbs- due to population density, basically. I’m not into the north shore- I find it a bit bland, and I generally prefer to invest in places which reflect me and my lifestyle… it’s just a preference thing.
kay henry
I’m looking at Balmain and Leichhardt, what do you think Kaye? Want a 2 bedder with a car park.
I have been lookin at Meadowbank area, the units are not fantastic but in my opinion there is some growth potential there.
Sit it out a bit longer T D. With so many developments in the pipeline I reckon you’re going to see more price corrections with units in Sydney.
How far do you think they will fall, 5%, 10% or more?
Terry,
The loss in value/price has certainly been documented… but I am in an area where there is a lot of building right now, and new 1-bedders are still sold for 350k-400k. Too exxy for me [blush2]
No, Tough- I don’t want a 2-bedder with a car park, thanks… I find my own properties
kay henry
I’m trying to buy one myself. Want to know if you think now is a good time to get in. Have been watching the area for a while and haven’t really seen much of a fall in price, but if people think they will drop I may hold off.
If you’re investing for the long term why are you holding off, the market might see some corrections but with these population growth figures in Sydney you will be save for the long term anyway.
There are always good deals to be done.Tough Deal,
I look more at rental yields in sydney than price. Fact is, if you are looking at inner-city/inner-ring suburbs, rents can be significant in dollar terms. The cheaper the property… the higher the yield. Why I am looking at yields is because I think CG will be slow at best for the next couple of years…and possibly negative in competitive markets (over-supplied areas). Hence, yield becomes important, when CG is questionable in the near future.
If you are seeking, say, 6%, can you get it for a 400k apartment? That’s around $470 a week. I mean, it’s possible, I suppose… but it’s risky to aim for those rents in this slower market.
I’d go for cheaper, although if you are going for a 400k apartment, go for a Renzo Piano- that will keep value in all market conditions, in my opinion.
kay henry
If supply is [or could be during your holding period] in excess of demand, look elsewhere.
Inner city apartments are only worth the investment if they offer a competitive advantage, i.e. spacious, attention to detail, exclusivity; and/or there is a clear demand [rental and re-sale] for the product throughout the estimated holding period.
— Michael
Thanks. looking more to inner west, not inner city.
Originally posted by qwerty:Sit it out a bit longer T D. With so many developments in the pipeline I reckon you’re going to see more price corrections with units in Sydney.
Im with qwerty
Add me to qwerty and SuperTed’s list
If you listen to the experts, they say there is good bargins from Jan – July 2005 because the off the plan settlements are due and many speculators got it wrong, lets see.
For me the city/eastern surburbs will bounce back because we are a city in demand and Sydney is the most beautiful city in the world.
Put me on the list, i hate being left out, good luck
[email protected] [suave]
Tough Deal,
I like the Inner West, too. (Though RE agents do keep expanding it.) I drove past a new site in Booth Street, Annandale yesterday. I think it’s on the corner of Taylor Street. It’s at the excavation stage. No signs up yet, but it will be apartments. And there’s every chance they’ll be pretty stylish. That area is really good – I own an house (IP) nearby. It’s on a bus route, good cafes, tree lined streets etc. Completion will be at least 18 months away. I’m going to keep an eye on it.
There’s another site that looks to be around 6 months from completion on the corner of Marrickville Road and Victoria Street, Marrickville. Again, I don’t know much about it, but I’ll watch it. It’s not a huge development. Marrickville isn’t in the same class as Annandale, but I think there’s growth to come – I’ve got a house there, too.
ScottI’ve been looking, albeit in a ‘still dreaming’ kind of way, in Double Bay, Rushcutters Bay and Darling Point and actually pinching myself at how CHEAP things seem (OK, ‘cheap’ is all relative I know, but I am SURE these joints were heaps more expensive a year or two ago -) and I’m seeing 4 bedroom houses on 540 metre lots in Double Bay for around 1.3 million, (they say 1.5 but you know they are dreaming -you can tell when you speak to the agents! -) and even an absolute waterfront darling point apartment with private beach, swimming pool, (apartment looks out on swimming pool, boats, and beach) and private jetty for 1.2 million list price. You know 1.2 means you could probably get that for 1 million in today’s market! There seems to be quite a lot on the market, too.
I reckon we are well into the ‘spring’ of duck season, but I think the season will continue for at least 2 years and for up to 4 years, give or take inflation
my 2 cents
Does it seem like the bargains are starting at the top of the market and filtering down, but they’re not at the bottom of the market yet?
cheers-
Minijoy to the world
“If you listen to the experts, they say there is good bargins from Jan – July 2005”
Define “experts”?
— Michael
You must be logged in to reply to this topic. If you don't have an account, you can register here.
