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Affordable beachside units
Snaring a bargain near the beach is the stuff real estate dreams are made of, especially for first home buyers on a quest to get a toehold in Sydney’s hideously expensive property market.
Buying a bargain at the beach is easier said than done – especially since there are less than 30 beachside suburbs in Sydney and demand for proximity to sand and surf is high.
A little bit of research mixed with a little bit of gut feeling has helped Alex May come up with suggestions for five beachside suburbs that are offering a range of units for owner occupiers looking to spend between $280,000 and $400,000.
Cronulla
2003 median unit price $425,000
up 14.1% from $372,000 in 2002
WHY IT’S GOOD: Sure, the median price is a little high but that’s because some units in the area are worth more than $2 million. Most older style units – which don’t have fantastic rental returns and therefore keep the investors away – are less than $400,000. And have you been to Cronulla lately? Those Shire-ites know a good thing when they find it, that’s why they never move out. The beach strip has come alive with good restaurants and this is the only beach in Sydney with rail access – you can be in the city in less than an hour without having to drive a car. Every unit in Cronulla is within a five minute walk of the beach.
WHAT ARE THE PITFALLS:
Some of the older style units are just plain ugly, and some are under 50 square metres which can mean problems trying to finance them. Stick to the streets close to action or try to look for unit buildings with a bit more style and character.
WHAT THE AGENTS SAY: McGrath Sutherland Shire’s Kieran Bresnahan says one bedders without a carspace can be had for as little as $275,000, and they will be within a five minute walk of the beach or bay. Two bedders with a carspace will cost between $350,000 and $400,000, and you might even get some water glimpses in that price range. New units will start at around $500,000, so stick to the older stock.
Manly Vale
2003 median unit price $385,000
up 15.6% from $333,000 in 2002
WHY IT’S GOOD: This suburb is within a 15-minute level walk of Manly, so while it technically isn’t beachside, it’s pretty close. There is a golf course and parks in Manly Vale, and the widest range of units in this suburb are available between Pittwater Rd and Condamine St. A small supermarket and bus transport is easily accessible from all parts of Manly Vale.
WHAT ARE THE PITFALLS: Some of the units are really small, but a good unit will be large enough for owner occupiers and might have a leafy aspect. There aren’t many with any water views and while there are some new developments in the area, the bulk of the stock is 1960s and 1970s vintage.
WHAT THE AGENTS SAY: Units in this area start in the low $300,000s for a one-bedder with a balcony and parking. A renovated two-bedder with parking will cost between $350,000 and $400,000 – at least $150,000 cheaper than a similar unit in nearby Manly.
Brighton Le Sands
2003 median unit price $391,000
up 19.4% from $327,500 in 2002
WHY IT’S GOOD: OK, Brighton Le Sands is technically on the bay rather than the beach, but it has similar ingredients to most Sydney beach locations, including a lively restaurant strip. The parklands in front of the beach along Grand Parade are usually abuzz with picknickers, on the weekends the restaurants burst at the seams and with the new M5 freeway, the car trip to the city takes around 15 to 20 minutes.
WHAT ARE THE PITFALLS: Prices have already had a big hike during 2003, so there might not be as much potential for good capital growth. The recent Jeff Fenech fracas outside a local restaurant was not great PR for the safety of the area – but like a lot of beach areas, this one does attract a few car hoons.
WHAT THE AGENTS SAY: Raine & Horne Brighton’s sales manager Adam Wiley says the bulk of units in the area were built in the 1960s and 1970s, with a few newer blocks in waterfront areas. A one-bedroom without a car space will range from $250,000 to $280,000 but a good two-bedroom unit with a garage can be had for between $350,000 and $400,000.
Maroubra
2003 median unit $443,000
up 5.4% from $420,000 in 2002
WHY IT’S GOOD: Maroubra has always been the poor cousin to the eastern suburbs beaches – Bondi, Bronte and Coogee steal the limelight. During the last four years, Maroubra Beach has been upgraded and there is a fabulous kiosk on the beach as well as apartment redevelopment plans for the Maroubra Hotel. Maroubra still has a way to go to catch up with its more glamourous neighbours, but the prices in the area are at least $100,000 cheaper than other eastern beaches.
WHAT ARE THE PITFALLS: There are a lot of units in this area, many of which have been run down by landlords. The closer you get to Maroubra Junction, the cheaper the prices can be – but beware of expensive maintenance bills and make sure units have a healthy sinking fund for future repairs.
WHAT THE AGENTS SAY: There isn’t a huge range of units available for under $400,000, but you will get something close to the junction without views. L.J. Hooker’s sales manager Elija Burrows says Marine Parade is the prime street, and a one-bedder sold for $410,000 in October last year. The most affordable units are 1960s and 1970s vintage without carparking.
Dee Why
2003 median unit price $374,000
up 6.9% from $350,000 in 2002
WHY IT’S GOOD: Some northern beaches residents have started calling Dee Why the Redfern of the northern beaches – the suburb has traditionally been at the lower end of the local real estate market, but is having a renaissance just like its inner city counterpart. Now that the al fresco restaurants along the beach have replaced the rundown fish and chip shops, Dee Why is buzzing.
WHAT ARE THE PITFALLS: This suburb is off the real estate experts list as a good buy – there is too much new development happening in the area and they believe that oversupply could hinder potential capital growth. So if you buy in this area, don’t expect the great capital gains of other beachside suburbs but do expect to get a better quality of unit for a more affordable price.
WHAT THE AGENTS SAY: Harbord Real Estate’s Erin Goffett says the cheap end of Dee Why is across Pittwater Rd, where quality two-bedroom units with garages and balconies can be had for between $300,000 and $400,000. A one-bedder in the area starts at $260,000 but a two-bedder close to the beach with parking and a nice aspect will cost around $400,000.
CASE STUDY
When Sharne Newton first thought about buying a unit five years ago, she wanted something in Bondi.
“I started looking in Bondi and quickly realised that I couldn’t live in a shoe box without a car space for the next five years,” she says.
Newton bought a two-bedroom 1960s unit with a lock-up garage in Brighton Le Sands for the low $300,000s in May last year, after a friend convinced her of the merits of the bayside suburb.
“Brighton is not Bondi, but the beach is really clean and beautiful,” she says. “Grand Parade is alive on a weekend and there are some fabulous restaurants that stay open until 1am.”
Newton has just two sets of traffic lights between home and her Botany office “and it’s only 15 minutes in the car to Bondi”.
THE EXPERTS TIPS FOR BEACHSIDE LOCATIONS
- Choose a unit you can easily live in for three to five years and use as a stepping stone to something else.
- Buy in an area with varying styles of units and detached houses. Try to steer clear of suburbs with too many boring looking unit blocks.
- Units built in the 1960s will make up the bulk of beachside units under $400,000 but try to find more stylised blocks with some interesting features or outlooks.
- Stick to suburbs where there aren’t a lot of new units being built – the more supply being built, the harder it is to get good capital gains in the future.
- Aim for a location close to established beaches with a lively café society.
- Look for beachside locations with good transport access, especially on the northern beaches.
- Median unit prices don’t tell the entire story about local prices – always do your homework and find out about new developments in the area, demand for established units and the best locations within a suburb.