Aspiring First Home Buyer Recommendations (Sydney)

deltaray on 08/11/2018 - 10:11

Hey fellas,

Me and my partner have been looking to buy our first property soon considering how prices have started to go down. As a background, we earn around a combined annual salary of $190-200k and have around $110k in savings. We don't really have any other source of funds do add to our downpayment as we don't really want to ask help from our parents.

Size of dwelling isn't that big of a deal as we don't really see ourselves having a more than 1 kid (maybe in 5 years). Our biggest consideration is to buy a property that can allow me to walk to a train station since I work in the city. As far as I've seen, the only way to have this is to either buy an apartment or townhouse, or a house very far west.

My question is, is a townhouse located 10 mins walk away from Edmondson Park station for 750k a ripoff or bad idea? Considering that the same developer that is building the residential areas are also building a shopping centre right in between the townhouse and the station.

From what people post here is that, houses are the way to go these days as apartments and townhouses only depreciate in value. But can the same be said on a very strategic townhouse like stated above?

Home & Garden

Comments

  • HighAndDry on 08/11/2018 - 10:16
    +1

    around $110k in savings

    Assuming 20% down and no stamp duty (due to Govt benefits), how are you buying a 750k property?

    is a townhouse located 10 mins walk away from Edmondson Park station for 750k a ripoff or bad idea?

    You need to commute to the city, right? And I assume still have some kind of social life? Then that's not something I'd personally go for at all. Apts and townhouses don't necessarily depreciate in value, but considering how much land is that far out South-West, not having a big chunk of it means anyone who wants to buy has plenty of other options to choose from, so prices have really nowhere to go.

    But can the same be said on a very strategic townhouse like stated above?

    Yes. People happily walk 10-15mins to train stations. Proximity to public transport is only valuable if properties are scarce. Take a look around and figure out how much land is 10-15mins from the station, then you can see how 'strategic' the ppty you're looking at is.

    • deltaray on 08/11/2018 - 11:02

      Assuming 20% down and no stamp duty (due to Govt benefits), how are you buying a 750k property?

      It's only 10% down and off the plan.

      You need to commute to the city, right? And I assume still have some kind of social life? Then that's not something I'd personally go for at all. Apts and townhouses don't necessarily depreciate in value, but considering how much land is that far out South-West, not having a big chunk of it means anyone who wants to buy has plenty of other options to choose from, so prices have really nowhere to go.

      Fair point.

  • kolorijo on 08/11/2018 - 10:41
    +2

    Why get a townhouse if you are willing to go that far to Edmondson Park? You should aim for a house in that area.

    How far in meters is the Townhouse from the station? Distance should not be measured by duration/time.

    • deltaray on 08/11/2018 - 11:29

      Why get a townhouse if you are willing to go that far to Edmondson Park? You should aim for a house in that area.

      Because most of the houses in the area are either still a good few minute drive to the station or sold as Lot+Land package, where the house design does not really appeal to us. It's hard to find properties there that will let you change the design or even the layout.

      How far in meters is the Townhouse from the station? Distance should not be measured by duration/time.

      I'd say around 600m or so. Can't exactly say until they finish the construction of the residential roads and the Shopping Centre. The walk would be a bit easier since you can pass straight through the Shopping Centre

      • kolorijo on 08/11/2018 - 14:43
        +1

        Personally, if I am on a limited budget, design would not be my main consideration. If my budget allows me to buy a house, then I would.

        600m is a good distance, not too close to the station and its unwanted busyness but an easy walk home and back.

        • deltaray on 08/11/2018 - 17:25

          Personally, if I am on a limited budget, design would not be my main consideration. If my budget allows me to buy a house, then I would.

          Agreed. Given our current circumstances, we’re eligible to borrow more from the bank, but obviously we’d want to minimize how much debt we’ll accumulate. We’re more concerned about being happy with what we buy as we plan on living in it for quite a while. Only reason I’m asking other’s advise is I’m fairly new in the country and not much experience in real estate.

          • [Deactivated] on 09/11/2018 - 13:16
            +2

            @deltaray: Borrowing to buy an asset should not be viewed like other forms of borrowing.

            Australia is fairly stable, the house prices are unlikely to plummet but if they were to drop, certain types of properties drop first. Usually small land houses because there's far more of those.

            So the choice shouldn't be viewed simply as smaller debt vs bigger debt. It should be viewed as better investment vs smaller debt.

  • John Kimble on 08/11/2018 - 11:19
    +4

    Size of dwelling isn't that big of a deal

    Said no one ever

    • deltaray on 08/11/2018 - 11:33

      My partner hates the thought of getting any property with more than 3BR. We hate the idea of having so much space/area of a property just being wastes/unused. It really boils down on people's lifestyle. We've never had any thoughts that our current 3BR apartment is too small

      • John Kimble on 08/11/2018 - 11:35

        So size does matter then. ;)

        • deltaray on 08/11/2018 - 11:39

          Only because most people here don't really complain about properties being too big.

  • Bid Sniper on 08/11/2018 - 11:21

    Now is not the time to buy

    • John Kimble on 08/11/2018 - 11:23

      When is?

      • Bid Sniper on 08/11/2018 - 11:26
        +1

        Bottom of the dip, we are still sliding.

        • derpdeder on 08/11/2018 - 13:48
          +3

          For owner-occupied, anytime is the time to buy. Ups and downs only matter to investment properties.

          If I sell my owner-occupied place in a downturn, I am buying again in the same downturned market. Same at the peak of the market - I sell my place at the top of the market, I am going to have to buy in the premium priced market.

          Unless you are going to go rent for a year and try and jump market timing (in which case you're investing $20k+ into renting instead of money that could have gone into your own home), there is no real need to worry about the market unless serviceability becomes a problem.

          • tryagain on 10/04/2019 - 20:45

            @derpdeder: Except that they aren't in the market yet!

            edit, just realised how old of a post this is!

        • chumlee on 08/11/2018 - 17:28

          The only thing you get trying to pick bottoms is smelly fingers.

          No one knows where the bottom is.

          Now is a good time to buy as people like yourself have their hands in their pockets waiting for the bottom = less competition.

          The sheep will buy back in when everyone else does for fear of missing out

    • cansydint on 08/11/2018 - 14:32

      now is not the time to buy certain property types and in certain areas

      There is still growth to be had in certain areas

  • Ryanek on 08/11/2018 - 11:27

    You might want to check out upcoming land releases in Leppington. A downside to townhouse living is possible strata fees.

    • deltaray on 08/11/2018 - 11:35

      You might want to check out upcoming land releases in Leppington. A downside to townhouse living is possible strata fees.

      I know what you mean. Agent told us it'd be around $700 per quarter which includes maintenance of the Fire Doors, Intercoms and Solar Panels

    • HighAndDry on 08/11/2018 - 12:06

      A downside to townhouse living is possible strata fees.

      Honestly, paying strata is (to me personally) preferable to having to take care of all the maintenance issues myself. I'd end up just paying someone else to take care of those anyway.

      • TheMindsetTraveller on 08/11/2018 - 12:18

        Location, location, location is going to be the key.

        These properties will depreciate last, will appreciate first.

        Good properties are located close to the City, are close to good schools, have good public transport.

  • pantsparty on 08/11/2018 - 12:44
    +1

    Wow that is a long commute to work - I would rather live in an apartment much closer to the city! That is 2 hours on the train each day assuming things are running to timetable (which lets be honest - they often don't).

    • deltaray on 08/11/2018 - 13:32

      Wow that is a long commute to work - I would rather live in an apartment much closer to the city! That is 2 hours on the train each day assuming things are running to timetable (which lets be honest - they often don't).

      Not really that bad. This is where I usually catch up on some news, podcasts or Switch game time, plus you can still snag a seat even during peak hours.

      And because of the time I get into work, I've rarely experience those major delays with the train. I can maybe even counts the instances with two hands.

      • [Deactivated] on 08/11/2018 - 21:40
        +1

        But… you could have 1.5 hrs up your sleeve potentially? I went from a 1.5hr commute to a 10 min bike ride each way. Those extra hours in the day are so amazing.

        • deltaray on 10/11/2018 - 10:12

          I cant disprove that, but I think my max travel would be a max of 1hr if no train problems. I think I can still tolerate that than your 1.5hrs before

  • TheBilly on 08/11/2018 - 13:55

    Why Edmonson?

    Why dont you and your wife have a sit down session and record on a piece of paper everything you want in a property - be realistic. Then start by narrowing everything down and explore every area that fits your requirements.

  • abb on 08/11/2018 - 13:56

    is a[n OFF THE PLAN] townhouse located 10 mins walk away from Edmondson Park station for 750k a ripoff or bad idea?

    Yes. Off the plan is almost always a bad idea. When is completion date? Is that the advertised price or did you negotiate 20% off already?

    I did a very quick search and found 3br townhouse walking distance from Ingleburn station for $575k, is Edmonson Park worth paying a 30% premium for?

  • mskeggs on 08/11/2018 - 18:09

    Try looking in other areas too.
    E.g:
    https://www.domain.com.au/136-glencoe-street-sutherland-nsw-…

    A 30 minute train ride to Central on the fast train, not too far to the beach, house on a good block. There would be traffic noise, but you can't have everything!

  • [Deactivated] on 08/11/2018 - 21:41

    Why buy?

  • sage26 on 09/11/2018 - 10:35

    It's only 10% down and off the plan

    The above is the developers condition to buy off the plan.

    Keep in mind that is not the conditions that apply to the bank approving a mortgage. No banks will approve a first home buyer with a 10% deposit these days. Are you confident the bank will approve your loan when the time comes to settle?

    • deltaray on 09/11/2018 - 13:47

      I'm pretty sure they wont. But I'm fairly certain we'll be able to scrap together another 10% or so by the time of settlement. But good advice nonetheless

      • miwahni on 10/11/2018 - 00:48
        +1

        Try some of the second tier lenders (ie not Big Four) eg Bank of Qld is still offering up to 98% inclusive of LMI, and ING will also do over 90%; these are the first two I googled and you'll no doubt find others. Not sure where sage26 is getting his / her info from but there are still deals to be done. Also there are the non-bank financial institutions to be considered.

  • emboon on 01/04/2019 - 11:31

    hey mate,

    I'm in the same boat and wondering what did you and your partner eventually decide. :)

    • deltaray on 01/04/2019 - 17:18

      We ended up not going for the townhouse. We found a big enough land (off the plan) that was about 375sqm, that was around the same distance as the townhouse. It'll work out around 30k more expensive once you get the build cost in, but it just feels that it's a much better move. In the long run, it might end up cheaper as you don't have to pay Strata, but at least we have the land under our name (which should appreciate more in time)

      • emboon on 02/04/2019 - 14:12

        do you mind sharing which suburb? you can PM me if you want or its fine if you're not comfortable to share.
        From your assessment, can you let me know the top3 suburbs you found best in that price range? I'm looking at Schofields, Ingleburn, Glenfield, Riverstone, Quakers Hill btw

        • deltaray on 03/04/2019 - 08:49

          I don't mind. It's at a new suburb called Bardia. It's right beside the Edmundson Park Station, but somehow ended up within the Campbelltown jurisdiction.

          In terms of suburbs we were looking at, our top choices were Edmundson Park, Leppington and Moorebank. Though Moorebank had no train station nearby. I work in the city, so we found it very important to have a Train station that's either a walking distance from home, or has a large enough Car Park. Not enough suburbs these days fit those needs and lets you live in a house/townhouse at those prices.

          Can't remember why we never considered North West, but must have something to do with being too traffic or too far from the Airports.

          • emboon on 06/04/2019 - 11:06

            @deltaray: Thanks for all the info. Huge help.
            I checked Edmondson Park station as we work in the city as well. Seems it takes 70+ mins compared to the north west development areas which takes just under an hour. But still good prices to be had at Bardia for house and land. Will check them out.
            Thanks heaps!

            • deltaray on 07/04/2019 - 07:58

              @emboon: By any chance you going down at townhall? It goes much quicker if you change at Glenfield. Edmondson Park Station to Central takes about 45 mins via airport line. Guess it just depends where you get off at CBD

              • emboon on 10/04/2019 - 09:24

                @deltaray: Yes we work at town hall and wynyard. Checking out Bardia there are heaps of land being sold but a lot is yet to be registered. Do you mind sharing which builder you went with and how your experience was?

                • deltaray on 10/04/2019 - 10:01

                  @emboon: Oh, my property hasn't been registered yet either. Expect it to be done by mid of next year. Haven't really decided on a Builder yet, but it was a struggle for us because our lot was a weird shape and most builders didn't want to make a custom-design for us. We did manage to find a builder, but we're still shopping around.

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