First Home Buyers - Sydney

We are a couple and new to Sydney, both working in IT in the CBD. We're really confused and looking for suggestions from fellow community members who have a good experience in Real Estate or recently made a property purchase.
- We're looking for our first property purchase(first home buyers) in Sydney and have a budget of up to 1.5m. Below are our few of the considerations:

  1. Proximity to CBD(up to 15-20 kms)
  2. Good Transport(close to Train station)
  3. Best schools, hospitals, shopping malls
  4. Safety and to have a good mix of multi cultural community
  5. Relatively newer constructions with a good future outlook
  6. Rental Yield

a. Please suggest which areas to consider and whether to buy an apartment, house, or unit, etc(we don't have any constraints, just looking for best option with above mentioned considerations)?

b. Are there any property-related Facebook groups or other forums that we can refer to? Also, if they are any good real estate agents that you can refer us to?

Thank you very much.

Poll Options

  • 2
    Apartment
  • 22
    House
  • 1
    Unit
  • 1
    Others

Comments

  • +2

    Proximity to CBD

    You both work in the CBD, depends on how close to. Then you're most likely look at apartment. Not all apartments have same body corporate fees. That is the sting. I have a studio (Melbourne CBD) in 11 story building (no pool, no gym, no 24hr concierge) and I pay $5k a year. Another building in Melbourne CBD 40 stories 2BR, gym, pool and 24hr concierge and I pay $5k a year.

    For apartments it takes time to know the buildings. Make sure you look at section 32s to see council rates and body corporate charges.

    Good Transport

    If you live close to CBD probably not a concern as you can walk, scooter to work.

    Rental Yield

    Apartments: you get high yield 7 - 8% (pre covid19) but little to no capital appreciation.
    Houses: low yield 2 - 4% but you get high capital appreciation.

    I find apartments are cash flow neutral (at least pre covid19) therefore someone pays it off for you.
    Houses you have to tip in.

    Most people will say houses on OzB. They will also tell you all the money they made on houses in the last 20 years.

    • Agree mate, another issue with houses is that either you can get old constructions or otherwise too far from CBD

    • Here in VIC, our body corporate management fees are pretty low thanks to my body corporate managers.

  • +1

    For your question (b) Property Chat is good place with lots of quality discussions.

    • Thanks Mate, I'll have a look

  • +1

    Just a word of caution if you're jumping into the property market at the moment. Many people are seeing it as a time to buy because the prices have stagnated/retreated somewhat. However i feel we're in for a year or two of regressing prices.

    I wouldn't be too keen on dropping 1 mill+ on a house when Australia/the world is in a recession, especially with COVID about and the immigration taps having been turned off.

    I feel when the Jobseeker and keeper are wound back many heavily indebted households will be forced to sell up. We're currently an economy being held together by a big band-aid and it's slowly being taken off, with realistic unemployment figures yet to be realised.

    • Yes, I do feel the same about a downward trend for a year to continue

    • -1

      I lol at this one

  • 1.2 mill really isnt that much in sydney, but i would check out kogarah, pretty much ticks all your 1-6

    • Thanks l understand that it's not much in Sydney unfortunately. We can stretch up to 1.5m so just updated in post as well to get better suggestions

  • Interestingly everyone is voting for house, but not mentioning which areas :)

  • Why do you care about rental yield?

    Burwood/Strathfield could fit your requirements, but you won't be able to afford a free-standing house.

    • Thanks Mate. As generally good rental yield takes care of the other things on it's own? Isn't it?

      • Maybe, but not necessarily. It just means that more people are willing to rent there. Could be due to proximity to a university or some other factor that you don't care about (unless you're an investor that is).

  • Maybe look around the Eastwood area.
    There have been some new apartments which have popped up.
    It has a train station with an express route to the City (Eastwood, then Strathfield, then Redfern, then City), around a 20min trip (I consider that quite quick).
    Along with the local shops, it is close to major shopping centres Macquarie Park, Top Ryde, Chatswood and Rhodes.
    Alot of choice in Asian Restuarants @ Eastwood e.g. Mr Stonepot, Tan Viet Noodlehouse and Chatswood expands those options up.
    Eastwood primary school is top tier in NSW.
    For high school options not too far away from you include James Ruse (top in NSW), Baulkham Hills (also top tier) both within 30mins drive.
    For good universities Usyd would be the closest (in the city next to Broadway).
    Hospitals close to Eastwood would be Ryde, Royal North Shore (St Leonards), North Shore Private and Mater (Private).

    • Thanks Mate. Yes Eastwood is definitely a consideration. Which apartments are you referring here?

      What would be your pick amongst Eastwood, Macquarie Park, Top Ryde, Chatswood and Rhodes?

      Chatswood would be more expensive anyways.

      • +1

        Glen St Eastwood have some new apartments, I saw inspection times when I went to eat there.

        Rhodes: Next to the waterfront. Shopping centre has IKEA if you are into that, otherwise limited shops and eat out options. I dont know of any good schools around that area. Has a train sation, quick trip to the city. Dominated by apartments.

        Top Ryde: Is the worst public transportation wise. It only has access to buses. Getting to the city could be a 40min bus ride on peak hours. Top Ryde primary school isnt highly ranked. Limited eat out options.

        Eastwood: Lots of eat out options, has train station with fast travel to city, Eastwood primary school is top tier.

        Macquarie Park: Has a major shopping centre and train station. Eastwood, Ryde and Mac Park are all within 15mins of each other.

        Chatswood: Major train station, 2 major shopping centres Chatswood Chase and Westfield Chatswood. Plenty of eat out options.

        I would go for either Eastwood or Chatswood. I live in Lindfield so I guess Chatswood would be my pick.

  • -1

    Working in CBD - make sure you have easy access to public transport (short walk), and that public transport is direct to CBD.

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