$500K to spend

I've been asked this question by a few people myself now, so thought I'd put it to the board

If you had $500K to spend and absolutely had to sink it into a Sydney property (costs not included) where would you spend it and why?

 

I would commission this mob to find me a good house in the Hills area
Seriously, I would purchase a Residex report, look for the postcodes that have the best rental yield / capital growth and buy there. Shame I cant use a "PIT" anymore tho....

 

Ah yes, Residex. But I'm sure you'd do more than just this, Dave.
So, do tell. According to John Edward's latest offering, what do you consider good value?

 

After close consultation with House Search (dont know how Perky did that link !) would be guided by them.

My inclinations are to further explore the south west of sydney - campbelltown etc as i think that there are some pockets out that way that may still be of value. (wish i had more time to look !!!)

 

Jacque,

Thanks for posting this as its exactly the predicament I'm in right now! Well, I've actually got pre-approval to $550K plus costs so not "exactly" the situation but pretty jolly close.

I'm currently looking around my local area, as you know, but you can't get much for those dollars near where I live...

Look forward to other people's thoughts on where to buy.

Cheers,
Michael.

 

Could be on the money there Nick. Probably where I would plant a spare $500k or part there of.

The Macarthur region is seeing some revitalisation at the moment with some major developement occuring and with the recent downturn in property prices the area could see some medium term gains.

Still some sub $200k properties (perform own search) around along with some bargains in the high end.

Some of the new developements include the following -

$52 million School of Medicine at the UWS Campbelltown Campus

Landcom's Park Central

Which will include the new $40 million Campbelltown Private Hospital, construction of which is due to commence this year.

Cabe's The Pinnacle

Lend Lease's Macarthur Square

In which AHL Entertainment has built it's new Greater Union cinema.

Parkview group's Mosaic apartments

With the M7 and M5 Motorways now piping in and being only 30mins from the beaches of Wollongong it does have some attraction.

The fact that some of the entrenched Department of Housing areas are being bulldozed and re-developed can only be positive too.

Hope this helps.

 

Hello all,

Im in a very similar situation, but it will be my first property purchase and it will be a PPOR not an investment property.

I was looking around the West Ryde, Ryde area as the prices around there fall around the 500K limit for an older style property with sizeable amounts of land. There is good transport facilities, the area has had fairly good capital growth i believe, and is still close enough to the city centre. I have not yet checked out the local schools in the area. Apparently the shopping centre is a bit run down, but should be getting a revamp in the future. That said, I still have a lot to learn about the area as i am currently living and have always lived in the eastern suburbs.

 

Hi Leandro
I know the Top Ryde shopping centre you're referring to- it is indeed very old but there's always good old Macquarie Shopping Centre until the Top Ryde one has been refurbished. It's modern, has cinemas and an ice skating rink etc. Not a bad place to shop at all.
Best way to learn about a new area is to drive, park and then walk around to get a better feel. Pinpoint the schools, shops, transport lines and other amenities that you want to be near and concentrate on those areas. Examine them at different periods of the day as well (peak hour etc) to cover all bases. Chat to neighbours, local shopkeepers as well as REA's and residents (if you know any) to pick up vibes on the specific areas within those suburbs. Ryde/West Ryde is no different to other suburbs- there are desirable and "less than desirable" streets. Lots of older federation style houses on bigger blocks, but you do pay more than $500K for a half decent one.
PM me if you want any help with a particular property- I might be able to assist you with info

 

Thanks Jacque,

Yes that is exactly what i am planning to do, go out to the suburb and get a good picture of it from first hand experience.

Thanks for the offer, still in the early stages of the the hunt, but i will keep it in mind

As for the original question though

anybody else's thoughts on these two areas?

I noticed that the price situation improved (cheaper) on many properties as you moved to surrounding areas such as dundas and ermington.
Do you think that this because they are further away from the train station and from the city centre? Or are there other reasons?

 

Dundas used to suffer from the "valley" tag (I know as I grew up in neighbouring Carlingford) as there were a great deal of housing commission homes there. It is still affordable, but there are still pockets of undesirable areas, especially around Telopea station (oversupply of units) and many homes are too close to the rail line for people's comfort.
Ermington is also partly industrial and, when you gaze down the nearby Parra river and see all the smokestacks of Silverwater, it can be a little off-putting
Ryde is closer to the CBD and always enjoyed a better reputation. It's closer to the nicer parts of the river, has plenty of amenities and is only 10km to the city. Look for quieter streets though. Avoid Victoria Rd if you can. It is so noisy!!!

 

I know Jac I didnt say much.
Currently am waiting on the sale of two houses, then will buy that report and see.
We were very keen on some parts of the Blue Mountains - but the rental yield of around 3% does not add up - unless I find a block with 3 titles, am allowed to put 2 relocatables on there (after council ok it and also we get past fire regulations which are very tight) - then the yield may rise up to around 6% and would make the project worthwhile.
Sean , I knew you would say your backyard is good to invest in . I think what you say has some validity though, as it is a good first home owner area , and 1st home owners are now becoming a higher percentage of purchasers.

 

Just commenting on first hand observations.
I don't agree that is is merely a "First home owner area". There are also indications that it is an area for smart investors.

Smart investing is finding something that is still undervalued, not something that has already appreciated to it's full value.

Time will tell but I see medium term capital growth.

 

So no one out there in good old Sydney town has opinions here?

 

I'd spend it on a terrace in Darlington or Erskineville personally

 

I'd go Northern Beaches (maybe Collaroy) or a property near Macquarie Uni along the new train corridor. I think those areas would offer good capital growth.

 

Guys,

I'm with Glebe. I'm currently looking Northern Beaches, next one along from Collaroy is Narrabeen and I'm hunting around in North Narrabeen and Elanora Heights. You can buy a house and land for a touch over $500K but it needs work. The bottom quartile median is $625K so there's potential to value add cheaply and revalue for profit.

Disclaimer, yes this is also where my PPOR is located but I promise I'm not doing a "pump and dump".

Cheers,
Michael.

 

What about Umina or Terrigal?

Seems to me that Umina looks pretty depressed but Terrigal has gone ahead in leaps and bounds.

Perhaps a nice house plus self-contained flat with the upside of putting up 2-3 "villas" down the track?

Thoughts?

N.

 

Nice
Did get a bit carried away. Thought I could add some value to this rather quiet forum.. oh well you live and learn hey.

I am a sucker for a heated debate though. Come on Perky...

Back to the subject. Reading the SMH Property guide stats. It is very difficult (impossible?) to find anywhere in the Sydney area that can achieve "Rental Reality". Almost all of the suburbs predicted for any sort of growth have medians of >1.5mil. A couple I did spot that may show promise, where Dean Park, which has a trend of 9.3% and is quite affordable, and also Jilliby which has a trend of 11.6% and 2006 projections of 6 to 9% but would be very negatively geared. I had not previously heard of these suburbs so don't know what sort of infrastructure exists or development that may be planned.

 

Ahh the old Dean Park and Jilloby

 

Yeah. That's what people used to say about Kellyville.