Blonde ambition....

Quick rundown..
- I'm 25.
- Bought my first property in Canberra when I was 17.
- Bought another one with the equity in it 2yrs ago, rebuilt it, just had to sell it for around 80k less than it was worth back then bummer.. but at least it sold (and looks amazing now mind u) - however, I now have 100k cash and Sydney on my doorstep.

Apologise in advance for my 'general' and broad post - i just want to hear from the real people out there in the market. Never been on one of these post sites b4!

Any tips or advice on where on earth I start looking?? I want to buy something as a potential renovator and live in it while doing it up.

What suburbs are due to boom in the next 5 years here??! no where further than 7-10kms out of city.. looking to spend 400 - 550k...

If unemployment rises to the levels that most are projecting I don't think anywhere is likely to "boom" over the next 5 years though I'm sure there will be some value add opportunities out there.

I can't offer any advice on specific suburbs, just don't know the Sydney market well enough.

While Redfern and Surry Hills seem overvalued now, I wonder if they might sky rocket after they clean up the train yard and turn it into that shopping centre?

Hi Nic,

I am wondering how a minor entered into a contract?

Cheers,

Dan

Nic

I wouldn't rush to buy anything atm because it's possible that property prices won't be going up in a hurry.

THE REASONS ARE:

1. yields are still quite low.
Property despite the large interest rate reductions is still not cheap.
With any new purchase I'll be getting yields of 4 and 5% and the interest alone is 5.5% and scheduled to rise . Therefore property investing isn't as attractive as it should be

2. It's harder to get finance.
speculative investors have either lost interest in property or can't get finance. Even finance for first home buyers is not as easy as it was 6 months ago and it could get tighter.

3. Job security. There is a lot of fear in the workplace these days, Unemployment is on the increase and people are scared to take risks.

HI Nic, congratulations for your achievements! Sorry I don't know Sydney well enough to comment. But realting to Billv's comment - I personally LOVE investing when everyone else is running scared and doom and glooming. That is when (IMO) the best buys are, once people feel that the market is good again you have already missed half the opportunities.

Have fun renovating(from experience I know it isn't really fun LOL)

Nice work on being in such a good financial situation, I'm about your age and am not in the 3 figure net-worth club yet

I honestly reckon that you shouldn't buy in Sydney yet. In my opinion things are overvalued pretty much everywhere. Wait and see what happens to the economy over the next 12 months, and go to inspections every weekend. Should give you a great feel for the market if/when you are ready to buy.

Check out the web for prices in Toowoomba. At least they're cheap!

Johny.

Nic Syd,
There are a number of good research companies available, Terry Ryder does one, Residex is another. I don't know the Sydney market so cannot help much other than suggesting you do your research, analysise the potential where a higher and better use can be made of the property and control your costs. Start at the end sale price, work backwards as to renovating costs to arrive at the purchase price.
You could try buyers agents as well.

Good luck

Hi Nic and welcome to InvestEd

Congrats on getting out there at such a young age (though I'm also curious as to how you could purchase as a minor!) and investing- good for you!

I just want to expand on your last line, as above. Why no further than 7-10kms out of Sydney? It's a well established myth that inner city properties perform better than suburbs in middle and outer ring suburbs. I can provide you with countless examples and statistics that demonstrate this but you do need to broaden your thinking, especially if you want a house for your budget
$550K will get you a very basic home in several suburbs of Sydney, but none of them within the 10km ring. Sydney is a huge place (I should know!) made up of diversely different socio-economic areas, with lots of change occuring in some suburbs and nothing much in others.
You need to conduct further research, challenge your current way of thinking and read more before taking the plunge here in Sydney. Failing that, seek suggestions from other investors here on the forum or contact an independent buyers agent for clarification on what your money can buy.

As Bill has pointed out, the FHB market is very strong and possibly pushing up prices artificially. Buy reno and sell properties are thin on the ground but yields are still improving, despite the exodus of tenants into the home buyer market. 2010 may well prove to be a year of contradictions....