Investing in Sydney – areas?

Went to a number of opens in GWS over the weekend – I think Mark is on the money, the time is passing. The feeding frenzy from the recent boom may leave you with a potential correction (I’ve noticed a trend of some Sydney investors divesting at the current sellers market and reinvesting elsewhere). Brisbane and Adelaide are consistently coming up as investor hotspots as of late.

On the LVR front, balancing the LVR and LMI requirements you should be able to hit circa 90% and keep well away from extortionate LMI premiums. If you were to bump up your purchase price to $450,000 you would have a 90% LVR and LMI of ~$8000, which could be capitalised onto the loan.

• This reply was modified 9 years, 1 month ago by  Corey Batt.

Liana not sure what your Broker is on but send some my way.

LMI on a 88% loan to valuation with a loan amount between 300-600K would only be 1.3% of the loan amount so even on a loan of 500K would be $6500 which could be capitalised (And of course is tax deductible) so a little different to 20K.

Cheers

Yours in Finance

Liana..

the LMI is way high.. check out the genworth calculator..http://www.genworth.com.au/online-tools-forms-and-reports/lmi-tools/lmi-premium-estimator

Liana . with your budget I would perhaps consider the central coast NSW. You are 40 to 90 mins drive to Sydney. The market is very diverse so you will have to do a lot of home work on locations. Some areas have peaked while others are in the mid part of an upswing. There is a lot of potential. There is still a tone of property available where you can manufacture equity after you buy. If you are a passive investor who just wants completed stock and sit back and pray for growth it may not be that great. If that is what you what to do I would spend a few hundred dollars on hotspotting reports over at Terrys sites and research some areas then go and buy a median priced property with high depreciation benefits. If you want something you can sink your teeth into and actually invest/create something then I think the Central Coast is the way to go. Yields: A property for 320 will probably rent for around 320 to 400 per week. Having said that I hate to generalise. Even in Sydney there will be areas that will continue to grow solidly for the next 5 years and to talk about one “Sydney” market is false as there is no such thing in reality. There are plenty of people who still hate on the central coast and I am biased because I live there so you have to take both sides. Not sure about the rules on links anymore but here is the link to Terrys site. https://www.hotspotting.com.au/ Worth a look. It has been a few years since I have purchase a report but I found value in them at the time.

Who knows you may end up investing somewhere completely new and it will be an exciting life adventure as you learn a new location and a build a new local team.