Why Sydney's 'bridesmaid' suburbs are the smartest place to buy property

You already love Bondi, but in nearby Maroubra (pictured), the properties are cheaper and the scenery is still killer.

Are you looking to get on the property ladder but you can’t afford to buy the ‘best of the best’?

Domain Group has put together a list of Sydney’s ‘bridesmaid’ suburbs where you should be investing your heard-earned cash.

Also read: WARNING: free investment advice could cost you a fortune

You love Bondi, but the same $2.9 million house there will be $900,000 cheaper in Maroubra – where the beach is pretty fantastic, too.

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You adore Dulwich Hill but Hurlstone Park next door is $100,000 less.

And your heart longs to live in Mosman, but your head tells you Naremburn, just 11 minutes’ drive away, could save you $1.3 million on the same home, according to the latest median-price data from the Domain Group.

There’s a lot to be said for choosing one of Sydney’s bridesmaid suburbs over the ones that consistently hog the limelight at the altar. In the short term, you’ll save money and avoid the stress of a bigger mortgage, according to the Domain Group.

Strategic Investor Group chief executive Alex Lambros says, “if you’re looking at affordability, then it might make sense to buy in a bridesmaid suburb, but maybe you won’t get the same capital gain as you’d get with the more expensive suburb.”

The pick of the bridesmaid suburbs is Waterloo in the inner south, Property buyer chief executive Rich Harvey says.

Suburbs like Redfern (pictured) have already experienced their boom, but neighbouring Waterloo is next on the list.

Suburbs like Redfern (pictured) have already experienced their boom, but neighbouring Waterloo is next on the list. Photo: istock

“It’s affordable with a median house price of $1.69 million compared to the eastern suburbs and city median of $2.377 million and while Surry Hills and Redfern have already gone through their booms, Waterloo is next on the list.”

Harvey’s other ‘bridesmaids’ include Beacon Hill on the northern beaches, Thornleigh on the upper north shore, Bexley to the south and Rydalmere, near Parramatta.

In the east, Phillips Pantzer Donnelley principal Mary Anne Cronin likes Maroubra, saying Bondi residents often look there for a more affordable home still within a walk to the beach, as well as Darlinghurst, Kensington and Kingsford.

Bondi residents often look for a more affordable home in Darlinghurst (pictured), Kensington and Kingsford.

Bondi residents often look for a more affordable home in Darlinghurst (pictured), Kensington and Kingsford. Photo: Aimee Crouch

“We’re seeing a lot of value still in those suburbs and they often have a fair choice of properties,” she says.

In the inner west, Andrew Knox, of Richardson & Wrench Marrickville, says Hurlstone Park is a bridesmaid often overlooked because of the dazzle of the Dulwich Hill bride.

“But it’s only a little bit further out, it has a train station and yet because it’s not a ‘through’ suburb, it often gets forgotten about,” he says.

On the lower north shore, Naremburn and pockets of Willoughby (pictured) are a lot more affordable than surrounding suburbs.

On the lower north shore, Naremburn and pockets of Willoughby (pictured) are a lot more affordable than surrounding suburbs. Photo: Supplied

On the lower north shore, the former bridesmaids of Cammeray and North Cremorne have blossomed into the stars of their own show.

“So now it’s suburbs like Naremburn and pockets of Willoughby that are a lot more affordable,” David Buttel, of Raine & Horne Neutral Bay, says.

But when a buyer is deciding whether to court a bridesmaid, they should first work out what qualities they’re prepared to compromise on.

“Those areas are cheaper for a reason,” SQM Research managing director Louis Christopher says.

“They might not be on the waterfront, or they could be further out or not near a hospital or a university.” By checking out a suburb thoroughly, it is possible to get a good bridesmaid buy, he says.

Property spotlight: New start for old Waterloo terrace

804 Elizabeth Street, Waterloo NSW.

This three-bedroom home at 804 Elizabeth Street, Waterloo is selling for $1.27 million. Photo: Supplied

One of the huge advantages of a house in a bridesmaid suburb like Waterloo is that it’s unlikely to be a lonely heart for long – there simply isn’t enough of them.

That’s where 804 Elizabeth Street, a $1.27 million property that’s headed for a May 12 auction, comes in.

“This is a beautiful terrace with lots of character from its origins in the late 1800s but it’s been restored beautifully with exposed brick and timber floors throughout, a great outdoor entertaining area and lots of modern touches,” Belle Property Surry Hills agent Leon Parker says.

804 Elizabeth Street, Waterloo NSW.

The house dates back to the 1800s but has been carefully restored. Photo: Supplied

“And while the suburb is really moving in a positive direction, houses are in the minority there. Eighty-five per cent of the housing stock is apartments, so houses are in even higher demand.”

Buyers agent Rich Harvey agrees. “The supply of units is quite high due to Green Square, but houses are becoming increasingly rare in the suburb and will also benefit strongly from the new amenities coming in.”

This three-bedroom home, with a large attic storeroom, has plenty of scope for further improvement, too.

“You could add even more value by going into the attic,” Parker says.