All Topics / Help Needed! / Investing in Sydney

Viewing 8 posts - 1 through 8 (of 8 total)
  • Profile photo of meniamenia
    Member
    @menia
    Join Date: 2011
    Post Count: 11
    November 27, 2011 - 9:34 am

    Hi guys,

    I'm looking to buy an inevstement property in Sydney. My budget is $750k and this would be a buy and hold option, I'm in it for the negatove gearing and the capital growth.

    I'm interested to hear evryones opinion as to which areas are good to invest in?

    Cheers
    M

    Profile photo of CatalystCatalyst
    Participant
    @catalyst
    Join Date: 2008
    Post Count: 1,404
    November 27, 2011 - 10:55 am
    menia wrote:
    Hi guys,

    I'm looking to buy an inevstement property in Sydney. My budget is $750k and this would be a buy and hold option, I'm in it for the negatove gearing and the capital growth.

    I'm interested to hear evryones opinion as to which areas are good to invest in?

    Cheers
    M

    Plenty of areas where you can lose money each year (ie negative gearing). No guarantee of CG.

    I don't buy to lose money so can't help you there. Sorry.

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    November 27, 2011 - 11:28 am
    menia wrote:
    Hi guys,

    I'm looking to buy an inevstement property in Sydney. My budget is $750k and this would be a buy and hold option, I'm in it for the negatove gearing and the capital growth.

    I'm interested to hear evryones opinion as to which areas are good to invest in?

    Cheers
    M

    Hi M

    Welcome to the forum.

    My first question would be why are you in it for negative gearing?

    I don't have an issue with negative gearing or properties that aren't cashflow positive but I'd never invest in a property purely for negative gearing benefits.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of meniamenia
    Member
    @menia
    Join Date: 2011
    Post Count: 11
    November 27, 2011 - 8:48 pm

    I should clarify my previous post. Negative gearing isn’t the first reason for investing but as there aren’t many positively geared properties out there I thought I might as well reduce the amount of tax I’m paying. Saying that if anyone can suggest good areas for cash flow positive area please tell.

    I like the north shore as it is a (fairly) stable area but most of the newer properties are highly cash negative which isn’t good for the overall cash flow.

    Profile photo of Jacqui MiddletonJacqui Middleton
    Participant
    @jacm
    Join Date: 2009
    Post Count: 2,539
    November 28, 2011 - 9:13 am

    Agreed. 

    Capital Growth is not a given.  It is a maybe.  Hopefully it will happen.

    Negative Gearing.  Hm… the government has done really well pushing that barrel.  Negative gearing is good they say.  They say this because they cannot afford to provide housing for all the people who cannot afford to buy their own homes.  They need investors for that.  Enter negative gearing.  Yay.  For every dollar you lose you get at best what… 45c back in your tax return.  Either way you still lost at least 55c in every dollar.  Awesome.  Losing money is fantastic.

    Seriously – not trying to tear shreds off you – just help you wake up and see the reality of the situation.  There are a lot of places where you can have your cake and eat it too.  Places where there is capital growth AND good rental yield.  Yes, you can became wealthy in non-prestigious towns.  The secret is well and truly out about Blacktown, NSW.  Quite the opposite of prestigious, but it has the trifecta.  Capital growth, sufficient rental yield, and low vacancy rate.  Done.  Thanks.  That's what you need.  Anything else is a gamble and praying things go your way.

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
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    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of Jacqui MiddletonJacqui Middleton
    Participant
    @jacm
    Join Date: 2009
    Post Count: 2,539
    November 28, 2011 - 9:15 am

    ps why not grab yourself something in Blacktown with a big enough backyard for gee…. I dont know… a granny flat.  If you scour recent API mags you will see you don't have to go through much bother with council to whack one in the backyard and rent it separately.  Thanks!  More rent!  Love it!

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
    Email Me | Phone Me

    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of meniamenia
    Member
    @menia
    Join Date: 2011
    Post Count: 11
    November 28, 2011 - 10:16 am

    Thanks for the advice JacM. I will no doubt check out Blacktown.

    Profile photo of CatalystCatalyst
    Participant
    @catalyst
    Join Date: 2008
    Post Count: 1,404
    November 28, 2011 - 11:21 am

    What's your goal in buying property? It's a bit difficult going on your limited info. You can buy in many areas of Sydney for $750K.
    We all want capital growth but it can't be guaranteed. If you are too negatively geared any growth is quickly eroded and you find yourself going backwards very quickly.

    Maybe look at 2 cheaper properties with a better yield.
    Everyone has their own strategy. Even the "experts" disagree. Some saying only by within 10km of the CBD, others saying buy out west for better yield etc.
    You need to decide what's best for your strategy and which will get you closer to your goal.

    Tax deductions are all well and good but remember they are the icing on the cake, they are not THE cake.

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