Area to invest - Homebush West
- Thread starter giraffez
- Start date
I personally don't mind the area because it's quite central.
However, I generally don't like units as investment vehicles because they can easily get duplicated so you end up with too many of them in 1 area.
I wouldn't base my purchase on the API/Residex predictions.
They are looking at past performance and seeing that an area hasn't gone up as per their expected pattern they expect it to catchup.
In my opinion many investors are confused and reluctant to buy because
all they see and hear is doom and gloom. Interest rates are up, rents can't cover the mortgage, there is talk of a recession etc etc
If interest rates continue to rise, IMHO forget the 10% capital gains.
Also, considering the current economic outlook, I would be happy with 5% CG
Unit prices have dropped in some areas and can be considered good value.
I would also look at performance from previous years.
Have you looked at the 2008 property guide?
Here is the link, there are 2 parts and they have put Homebush in the Western section.
http://www.domain.com.au/Public/Guides.aspx
Cheers
However, I generally don't like units as investment vehicles because they can easily get duplicated so you end up with too many of them in 1 area.
I wouldn't base my purchase on the API/Residex predictions.
They are looking at past performance and seeing that an area hasn't gone up as per their expected pattern they expect it to catchup.
In my opinion many investors are confused and reluctant to buy because
all they see and hear is doom and gloom. Interest rates are up, rents can't cover the mortgage, there is talk of a recession etc etc
If interest rates continue to rise, IMHO forget the 10% capital gains.
Also, considering the current economic outlook, I would be happy with 5% CG
Unit prices have dropped in some areas and can be considered good value.
I would also look at performance from previous years.
Have you looked at the 2008 property guide?
Here is the link, there are 2 parts and they have put Homebush in the Western section.
http://www.domain.com.au/Public/Guides.aspx
Cheers
hi,
just refreshing this topic as i am interested in buying an apartment in homebush west too for investment.
see quite a number of units on offer....can get a 2 bedder, new looking unit for about $320 000 and cn rent out for $380.....
Homebush west is not as nice or as convenient as strathfield, but then the price is a fair bit lower.
Just wondering what people think....not sure if there are too many units popping up there. But then in a lot of areas of sydney it is hard to get a nice looking 2 bedroom unit for about this price which is relatively central and not too far from city.
thanks,
just refreshing this topic as i am interested in buying an apartment in homebush west too for investment.
see quite a number of units on offer....can get a 2 bedder, new looking unit for about $320 000 and cn rent out for $380.....
Homebush west is not as nice or as convenient as strathfield, but then the price is a fair bit lower.
Just wondering what people think....not sure if there are too many units popping up there. But then in a lot of areas of sydney it is hard to get a nice looking 2 bedroom unit for about this price which is relatively central and not too far from city.
thanks,
Not problem with Homebush West but I would not buy into it now. Given the price range of these units appeal to first home buyer and price are inflated as the result - was looking at Homebush West two years ago and the price are typically 30k lower.
Also, I would stay away from the west side of the Centenary Dr. There are too many apartments on sale in these complexes at any given time.
Given the interest is on the way up, I would wait until at least early next year.
Also, I would stay away from the west side of the Centenary Dr. There are too many apartments on sale in these complexes at any given time.
Given the interest is on the way up, I would wait until at least early next year.
FYI I settled in May 2009. 4 Years old. 2 bed, 2 Bath, 1 Car, Total 107m2. Paid $315k. Rent $420/w. Identical Units (on same floor, with same floor plan) Advertised for $349k. I'd say they'd be worth $330k max. October 2008 I could have gotten the same thing for $300k ish.
Not saying it is the best investment. Those are the figures, the cashflow helps me being a first time invester.
Good luck with your research.
Cheers,
YG
Not saying it is the best investment. Those are the figures, the cashflow helps me being a first time invester.
Good luck with your research.
Cheers,
YG
hey young gun,
do u mind me asking if your purchase was one of the propertys on the west of centenary drive ?
my interest is in a property there and the yield is good...not sure if there is too much noise being near centenary drive.
also unsure if it will be easy to sell later on given so many units in that area.
do u mind me asking if your purchase was one of the propertys on the west of centenary drive ?
my interest is in a property there and the yield is good...not sure if there is too much noise being near centenary drive.
also unsure if it will be easy to sell later on given so many units in that area.
It is on the West side. The property however is not facing Centenary drive so there is zero noise both from my balcony and inside my apartment.
All things being considered, I don't plan on selling within 10 years, if not longer who knows. The way I see it, the area is 7kms to Parramatta CBD, 12kms to Sydney CBD. Plenty of public transport, sporting facilities, restraunts, shopping, schools & jobs within minutes of the area. When I plan on selling I'm sure someone will want to live there.
All things being considered, I don't plan on selling within 10 years, if not longer who knows. The way I see it, the area is 7kms to Parramatta CBD, 12kms to Sydney CBD. Plenty of public transport, sporting facilities, restraunts, shopping, schools & jobs within minutes of the area. When I plan on selling I'm sure someone will want to live there.
I've heard someone mention that olympic park was poised for some big growth and improvements over the next few years, including more shops, a tafe, hospital, offices (and obviously more residential apartments). If the growth in olympic park will be as big as they're selling it to be, there might be some good flow on affect to homebush west.
however i do feel that homebush west is already quite dense with apartments. Olympic park may soon be similar.. they're already selling off the plan.
however i do feel that homebush west is already quite dense with apartments. Olympic park may soon be similar.. they're already selling off the plan.
Keep in mind supply and demand with both rental and sale price.
If there are a lot of units in need of a tenant then there will be competition in regards to the rent being paid (could lead to rent reductions and lower screening (which may lead to a more undesirable tenant) to secure a tenant quickly). The same could apply when you are selling - a lot on the market at once, lots of competition, which will then see a decrease in the sale price.
Do you know what the ratio is for owners/tenants? Will the area be populated mainly by tenants who may not keep the property in good order which may cause higher strata fees?
Just a few things to keep in mind.
Peter
www.cashflowcalculators.com.au
www.privaterealestate.net.au
If there are a lot of units in need of a tenant then there will be competition in regards to the rent being paid (could lead to rent reductions and lower screening (which may lead to a more undesirable tenant) to secure a tenant quickly). The same could apply when you are selling - a lot on the market at once, lots of competition, which will then see a decrease in the sale price.
Do you know what the ratio is for owners/tenants? Will the area be populated mainly by tenants who may not keep the property in good order which may cause higher strata fees?
Just a few things to keep in mind.
Peter
www.cashflowcalculators.com.au
www.privaterealestate.net.au
Similar threads
