What $700,000 can buy in the Lower North Shore: HTW residential
Admittedly, $700,000 is nearing the bottom end of the Lower North Shore market, but it can still buy you a unit style property with plenty of up-side, according to a recent Herron Todd White (HTW) residential report.
The valuation firm took a look at how a budget of $700,000 could be invested in property markets across the nation.
"Normally when we mention Sydney’s Lower North Shore, we are referring to multi-million dollar prestige properties on expansive allotments with landmark views.
"However, there is another sector of the market on the Lower North Shore which fits the criteria for this month’s lazy $700,000 discussion," the valuation firm said.
Looking at the suburb of Neutral Bay, just 1.5 kilometres from the Sydney CBD, a one-bedroom unit with parking within a classic circa 1960 or 1970 walk-up style unit complex is still readily available.
Although at the lower end of the market, a unit such as this in Neutral Bay still offers proximity to amenities, restaurants and retail, public transport (buses and rail depending on position) and the harbour foreshore.
An example of a recent sale of such a property is 9/389A Alfred Street, Neutral Bay (pictured below), selling in March this year for $640,000.
This is a 1960’s style, one-bedroom, one-bathroom, updated, north facing unit with a small balcony and a single car space.
Typically, these units are in demand from young professionals, downsizers or investors. A unit such as the one described above would likely achieve a weekly rental of $500, resulting in an approximate yield of four per cent, the report noted.
Although this return is not setting any records, capital growth is historically strong on the Lower North Shore and this forms part of the attraction for investors.
"We would expect this sector of the market to continue to perform well in the future, primarily underpinned by the central location, public transport and convenient access to the Sydney CBD," the valuation firm said.