I would look at Westmead, Wentworthville and Harris Park for existing units near the train stations.
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I would look at Westmead, Wentworthville and Harris Park for existing units near the train stations.
The previous poster said he was only looking at units. There is a lower yield with houses, so it's up to the individual as to what they want to buy.
Thanks everyone for your advice.
Have done some more research and am also considering Haymarket and Alexandria - both have higher rental yields (5 to 6%)
You would get better yield in Haymarket and most likely better capital long term growth.
I would appreciate some advice, please.
I am 34 years old, married, 3 young kids (under 6). Wife currently not working but will return to work part time in September, 3 days a week - in child care (so money is not great).
Having said that, I am lucky and on a high income. We were able to pay off our first home loan (2005 - 500k) in 6 years, and our current home loan (bought in 2013) of 1.1m we have already paid off around 500k. We are good savers and able to manage money well, I think.
We have paid off 500k by putting it into an offset account.
Now, we are thinking of buying our first IP. Reasons for buying:
- Long term capital growth
- Tax minimization
- Alternate source of income
A few people I have spoken to that I trust have suggested either Macquarie Park or Parramatta - both because of their closeness to transport, and Macquarie Park due to proximity to Macquarie Uni - lots of international students looking for accommodation. Both have low vacancy rates as far as I can tell.
We can afford to borrow around 800k, I think. We could then pull another 200k out of our offset account, giving us the ability to play with around $1m, which would be easily sufficient to buy a 2 bedroom, 1 garage newish (or brand new) apartment in either location.
Both areas have a rental income of around 500pw.
By my calcs, this effectively would cost me around $200/month in cash flow, PLUS the extra interest we would be paying on our home loan by withdrawing 200k from the offset. These numbers don't worry me and I am confident we could manage it.
Questions:
1) Is now a good time to buy? it seems we are at the peak of the market - but then again, I figure we have to get in 'at some time'
2) What other areas in Sydney should we consider? Are there areas with higher rental yield than these 2 areas?
3) Anything I am not considering here?
Thanks - greatly appreciate any advice you can offer.
Thanks for the advice! I appreciate it. My calcs show
BUT - my thinking is that the new OTP place will appreciate more in value - it's on the water/river, it's brand new etc etc.