1st IP - Sydney - Parra? Macquarie Park?

Interested to hear how spending $800-$1m and only achieving $500 rent per week would only cost you $200 per month?

Interested as well.

Maybe I'm doing the calculations wrong but the numbers don't seem stack up unless the OP has factored in negative gearing and depreciation + working for the bank and getting staff discount on interest rates?
 
Hi Zubs,

I live on Herring Rd, the older units next to the Stamford.

You can still get older 2 bedroom stock for around $650k in Macquarie Park. My only concern is the yield. You generally get around $470 rent which isn't great, a gross yield of 3.8%.

Before you jump in on the newer units, run the numbers. I suspect they might be even worse when you factor in the high strata costs. Even if you go for depreciation, I doubt it would stack up. Personally I would be weary of the new OTP units, so many of them going up on Herring Rd.

Does your first IP have to be in Sydney? Personally think it's not the best time to buy in Sydney.

Good luck!
Michael

Michael , also lived there a few years ago , drove past the other day and the whole
stamford now gone and just a big hole in the ground , suspect when all the highrise
goes up the old unit block is going to be darker than ever , the southern side
had a nice outlook over stamford but presume now will be looking into new unit complex windows.
can't imagine the peak hour madness when another couple of hundred cars move in when it can be gridlock now at that intersection.
 
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Michael , also lived there a few years ago , drove past the other day and the whole
stamford now gone and just a big hole in the ground , suspect when all the highrise
goes up the old unit block is going to be darker than ever , the southern side
had a nice outlook over stamford but presume now will be looking into new unit complex windows.
can't imagine the peak hour madness when another couple of hundred cars move in when in can be gridlock now at that intersection.

It is actually madness. My window looks directly onto where Stamford use to be. Let's just say the air & noise pollution haven't been fun.

Spending more time at my parents place these days......
 
Last night after reading this article: http://www.smh.com.au/nsw/parramatt...ter-demolition-approvals-20150518-gh3ydx.html

It makes me think that buying within the 5KM of Parramatta area will surely a profitable choice for long term. But not Off The Plan apartment.

Can anyone please clarify that ?

Hi JohnHenry, I did the same.... Just think 10years from now, Parramatta will be the central CBD for the west, and there will be lot of new Jobs.

Any suburb around it can be very expensive.
Note: always avoid investing right in the CBD itself, as it will be too crowded, and oversupply
 
Hi JohnHenry, I did the same.... Just think 10years from now, Parramatta will be the central CBD for the west, and there will be lot of new Jobs.

Any suburb around it can be very expensive.
Note: always avoid investing right in the CBD itself, as it will be too crowded, and oversupply

Make sense for that. Hopefully the next Federal Govt. will not stopping this progress further.
 
Thanks - yes, I find this advice invaluable.
I also read the Parra article and it's got me thinking about Parra again.
Also thinking about Haymarket - $1m properties give a rent of 900 to $1k a month.

Regarding my calcs - yes, they took into account negative gearing and depreciation.
 
Thanks - yes, I find this advice invaluable.
I also read the Parra article and it's got me thinking about Parra again.
Also thinking about Haymarket - $1m properties give a rent of 900 to $1k a month.

Regarding my calcs - yes, they took into account negative gearing and depreciation.

That's true, anywhere in Sydney CBD, where the building doesn't have extremely strict security like in Regis Towers (303 Castlereagh St.), it can be rented to multipletenants with cash in hand for more yield ;-)

I've seen some 2 bedders apartment in Astoria tower (222 Sussex St.) can be rented to 10 people which is high risk but profitable business in the city.

I guess, soon enough Parramatta can become like that when more people cannot afford to rent proper place due to high rental price.
 
Any further thoughts here? I am still considering Parramatta - it's an up and coming area, with lots of development. I am not worried about value at time of settlement - I am only concerned with value in 10 or 15 years - and my research and reading tells me that parra will go up in value considerably.

Surely based on this, even a price of 850 or 900k for a 2 bedroom off the plan in Parra is NOT actually that unreasonable?
 
Any further thoughts here? I am still considering Parramatta - it's an up and coming area, with lots of development. I am not worried about value at time of settlement - I am only concerned with value in 10 or 15 years - and my research and reading tells me that parra will go up in value considerably.

Surely based on this, even a price of 850 or 900k for a 2 bedroom off the plan in Parra is NOT actually that unreasonable?

Zubs,

why not investing in Westmead and Wentworthville for lower cost of entry :)
 
Surely based on this, even a price of 850 or 900k for a 2 bedroom off the plan in Parra is NOT actually that unreasonable?

I would still go with existing stock for the following reasons:
- Similar existing stock are approx 200k cheaper.
- With so much development going on a lot of forumites here think there may be a bit of an oversupply in the coming years. My view is that if or when this happens the more expensive "luxury" stock will take the biggest hit. The rest will be impacted but not as much in comparison. Choosing existing stock will minimise risk in a correction phase
- Also in an oversupply situation rental vacancy in an area may rise. Buying at a cheaper price point will allow you to price rent more competitively. Given a choice, i think most renters would rather pay $550pw for a 2 bedder that's <10yrs old over $750pw for a brand new apartment.
 
Thanks, good thoughts.

westmead/Wenty - with parra being the 'up and coming CBD' I thought there'd be much higher growth being close to Parra station/CBD.
 
Parra House or Unit

Are you guys talking about units or houses in and near parramatta? Houses are very expensive now, even in wenty, westmead and northmead.
 
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