Advice/recommendation for First Investment Property (Wyoming, Central Coast NSW)

[TallRegan]

Hi All,

I'm looking for my first Investment Property, hoping to pick up something local to my region (Central Coast, NSW). Like most others, I'm looking for something with a reasonable rental yield as well as something that will gain in capital overtime. This brings me to two properties that I checked out yesterday;

Number 39
http://www.realestate.com.au/property-house-nsw-wyoming-118270223
Realtor says there is currently an offer on the property but expects it to fall through, as their solicitor is "being difficult". Their goal is to convert the two story house into two separate dwellings, but expected to have approval issues with putting a 2nd kitchen in.

The current owners have moved from the property already and not leased it out with intentions to only sell. It would appear to be more modern of the two properties looked at today.

Number 41
http://www.realestate.com.au/property-house-nsw-wyoming-118053683
"Active Termites" was the first thing that that the agent said when we started asking about any structural issues. He said that the house had been treated and maintenance inspection had approved it to be OK with a 10-year warranty. My first though of course was what about after these 10-years are up?

Next door at 39 the competitor real estate agent advised that this property had initially been put for sale at $435k, an offer was made, building inspection completed (and found the termites), offer withdrawn, property taken off the market for ~3 months whilst "treated", put back on for cheaper price and has been sitting for another few months now.

The immediate benefit to this property over next door is the current rental family is comfortable paying $490/week.

Wyoming, NSW
Just briefly about the suburb - Narara train station is only 750m away from each property. Primary/Public School is 1.3k away and the local High School is 2.3k away. Given the close proximity to these it would be ideal to rent a large 5-bedroom house such as these to a commuting family.

What do you think? Am I looking for the wrong thing for what I'm after? Is one of these a clear stand out over the other? All help appreciated.

Regards,

TR

 

[Cherry Pro]

Hi TR

With the Sydney market so hot, the Central Coast and Port Macq have certainly increased in their appeal.

Both those properties look okay but what would the numbers be if you converted to dual occupancy. Would it be easy enough to create two separate dwellings or would you be happy with the current rental yield at around 6.5%

I personally prefer No. 39 as it was owner occupied - so good luck with your first IP.

 

[LeoT]

Just looking at both properties for some analysis for negotiations.

1. 39 Wyoming road has been on the market for 46 days, and was first advertised at 420k and now down to 390k. Personally I think there is room to get a further 20-30k discount. Owners paid 128k in 1997. If you are interested in this one I would not offer 390k. Start at 360k IMO. Also rented in 2010 for 370/week so should be neutrally geared now if you can get it for 370k purchase. I think they given how long its been on the market, pre-Christmas etc you could negotiate harder to reduce price. Also the land content is little bigger then the other one.

2.June14 rented for 480/week, On the market for 69 days already, I would also negotiate to a lower price of around 380k circa. With the recent rental price it should be positively geared if 480/week is actually accurate. Need to compare with other properties. Also owners paid 342k in 2011, this suggests to me its likely a 'distressed' sale (not certain) for some reason. For sure they know they aint gonna make much on this property. Some digging with the agent might uncover why they are selling.

I think both properties have room to negotiate IMO. ALSO, I hope you have a plan/strategy and you know your investment goals, and either of these properties fit into that strategy and get you closer to your goal. Only you know if this is the case.

Good luck!

leo

 

[amativus]

What is the general opinnion in regards to the potential Chinese Theme Park to be built in the area? I would assume a increase in tourism, therefore infrastructure, employment etc

Refer link below:

http://www.wyong.nsw.gov.au/for-business/chinese-theme-park-warnervale/


Regards

 

[Montoya]

What is the general opinnion in regards to the potential Chinese Theme Park to be built in the area? I would assume a increase in tourism, therefore infrastructure, employment etc

Refer link below:

http://www.wyong.nsw.gov.au/for-business/chinese-theme-park-warnervale/


Regards

At first I thought this would be great for the area, then I read some more about the proposed plan, and even saw an 11 minute 3D animated video of what it was supposed to look like. I don't know why they're advertising it as a 'theme park'. When I think 'theme park', I think rides, fun, tourist attraction with tourist prices. Instead I see 15 hectares of culturally diverse architecture.

Also, what kind of a name is "Chappy Pie China Time"?

Of course, I would like to be oh so wrong as I have an IP <10km away, but we'll see.