Grumpy first home buyers even face investor competition for the Vaucluse crumbs
The pinpointing of Vaucluse as an attractive option for first home buyers by the Herron Todd White valuation group was akin to looking outside the box a bit.
As the traditional FHB inner city stomping ground kicks along with high auction clearance rates and ensuing price growth, the message from the on-the-ground valuers was sometimes its pays to go to possibly less attractive alternatives before everyone else does.
And that needn't be to the cheaper suburbs, but in this case the virtual blueblood suburb of Vaucluse.
It could almost be described as Bondi’s very north as most of the sub-$600,000 options are along or close to the central bus route rather than the coast or harbourside. Just the one appeared to get an ocean view at that price level. Certainly lacking in key aspects of the desired youthful lifestyle at the end of the road, but well worth considering when it comes to affordability.
You might even pick up a Harry Seidler-designed apartment if you go another $80,000 or $90,000.
HTW suggested there had been two-bedroom, one-bathroom, car space unit sales in the $550,000 to $600,000 price range which may represent good buying.
Vaucluse has about 4,200 properties, and I found just the 16 opportunities so far this year to buy at $600,000 or under. The cheapest was a one bedder on Old South Head Road sold at $340,000 last month through LH Hooker Double Bay agent David Malouf.
Located next to Christison Park and above The Grumpy Baker Cafe, it had previously traded in 2011 at $305,000 and then at $335,000 at the tail end of the 2003-2004 boom.
It had previously been in the rental pool at around $420 a week, so certainly a first time buyer could take on a mortgage and forget renting for ever.
But perhaps not surprisingly, David Malouf indicated the apartment was snapped up pre-auction by an investor.
"There were many first home buyers, but investor interest is strong at the moment," David Malouf told Property Observer.
And do-it-yourself property manager investor too who quickly had it available in internet ads for rent at $450 a week. That's a nice 6.8% gross yield without management fees.
