Advice on IP in Summer Hill, Sydney???

P

Propertygirl

I am new to this forum, but have been reading madly for about 1 week!
I wondered if anyone has bought an IP in Summer Hill (Sydney) and how it has performed?

I have done well with IP's in Perth but am looking to buy one in Sydney now...any advice???

thanks!
 
I don't know the area very well, but my feeling on most inner city suburbs is that there are areas within the suburb which should be avoided... either because of train/ plane noise, or because of undesirable neighbours etc.
So, I wouldn't be so confident buying from a distance, unless you have someone looking at the properties for you,
Pen
 
I agree with comments so far - Summer Hill is a nice little patch in the inner west - a little flight noise but ok. There is a nice 'village green' park behind the main street. For an IP, this area would definately be a perennial target for renters in Sydney.

The main train lines running west go through it. Also there are plans to extend the privately-run tram to end at Summer Hill. along the current freight trainline. It currently goes from Central station, through China Town, past the casino and ends at Lilyfield.... this can only be a plus in future years....

cheers
 
I'm planning my 1st IP purchase in summer hill :) (though we have yet to buy our ppor despite our best efforts!)

Lots of shops & cafes in summer hills, a suburb which appeals to the "trendy young professionals" set. And even more mall shopping in Ashfield next door.
 
summer hill is an up and coming suburb for sure. All of my friends at work in their early twenties rent in summer hill. My friend pays $300 p.w for a 1 bedroom terrace which is very small she shares with her bf. My other friend lives in a 3 bedroom new apartment in summer hill and they pay $580 a week.

What is the average price for say a 2 or 3 bedroom house? Im very interested to know.
 
pennyk said:
I don't know the area very well, but my feeling on most inner city suburbs is that there are areas within the suburb which should be avoided... either because of train/ plane noise, or because of undesirable neighbours etc.
So, I wouldn't be so confident buying from a distance, unless you have someone looking at the properties for you,
Pen
Click to expand...

You have planes nearly touching the roof in Newtown, but that doesn't stop the toilet block sized places selling for a fortune :rolleyes:;)
 
I suppose Summer Hill is a good bet, I lived there a few years ago before its boom and as soon as those damn cafes started opening up with the chairs on the footpaths we left - I can't stand that crap

It is a great sign that a suburb's prices are about to go through the roof and sure enouhg they did, and I'm not just talking houses/rentals - prices of the groceries in Franklins - everything went up over the last few years - as soon as I saw the signs of things to come - we left. Best time would have been late 2004 to buy I would say but I supposed there are still some good choices around but they aren't gonna be cheap....
 
I've been hitting the pavements of summer hill in recent weeks - looking for IP1.

http://www.domain.com.au/Public/PropertyDetails.aspx?adid=2006816085

Unfortunately the yield's not great. Eg. this one, advertised for $355k, rents for $380 pw.

Even if you could get it for $330k (good luck competing with FHB's), the yield's still not that flattering. I'm fairly conservative and concerned about the low yield particularly when interest rates start to rise again... any thoughts? I know PI is not all about yield, CG is a factor too, but for me the cashflow helps me to sleep at night (and helps pay off the loan too!)
 
I think Summer Hill is overpriced and has been for a while now, screw gentrification !

I am thinking of buying in Ashfield, only 3 minutes away which is alot cheaper and has alot better transport connections. I lived in Summer Hill and the trains run every 30 minutes, a 'few' more in peak hours but still not very good at all.

In Ashfield there are trains like every few minutes (express (18mins) to the city)
throughout the day and on average I would say at least $50k cheaper on most units considering proximity to the station...
 
Thanks for all the thoughts...
I was hunting in Summer Hill for the first IP for my sister, when we started looking 6 month ago a few little tiny 2 bedders were selling for 230K (unrenovated) and renting for $290pw, lately they have been selling for 280K....I think we have missed the boat with all the first home buyers in that price range. We have been looking at Ashfield too...I would be interested in peoples thoughts about that area, it seems to be a very different demographic and not sure if it is gentrifying, or if there are too many units in the area...

cheers
propertygirl
 
you won't get any 2BR of a decent size under $350k now, theer is no point buying something tiny unless you like living in tiny spaces or think people will want to rent a tiny space. Ashfield is mostly Chinese with Indians slowly creeping up on them, there are alot of units in Ashfield but there are still bargains to be had, Im in negotiations right now on a large 2BR 5 mins from the station, middle floor, big balcony, the building is probably 25 yrs old in good condition, fully renovated - all this hopefully for $350k, will let you know in a few days :)
 
billyb67 said:
you won't get any 2BR of a decent size under $350k now, theer is no point buying something tiny unless you like living in tiny spaces or think people will want to rent a tiny space.
Click to expand...


You would be surprised...

I generally aim for smaller properties because your only ever renting to singles or couples, no kids = less damage. Generally smaller properties attract people who are more interested in going out than staying home. Again, less time at home = less damage.
 
ahh some good points there ok180 but we are trying to appeal to the widest possible demographic.... can't stand any empty homes for weeks ....
 
Whoever said something about a unit for $230k must be kidding themselves. We've been looking for some time now, and we cant find anything under $370k thats for 2 bedrooms and not big either.
 
hmm, I tend to agree, have been looking in summer hill too and there's nothing cheap out there!

I agree that ashfield has much better transport connections than summer hill - however it has a LOT more units than summer hill. And a very high itinerant student population. Walking around both suburbs, I do prefer summer hill for an IP as it would appeal to families rather than student share housing... what do ppl think?
 
Yep. Thumbs up on Summer Hill for me. Doesn't compare to Ashfield. Has allot more charm and character, leafy streets, nice village with NO junk fast food chain outlets, great transport, no high rise apartments, family oriented without an oversupply of units, parks etc.. it has everything to offer for a perfect investment. And no, not many cheap units in summer hill. A great time to buy units was back in 98/99/2000/01. Never too late though to buy if you got the money. :)

Personally Ashfield I wouldn't touch.

Cheers
John.
 
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