Hi All,
So I've tentatively narrowed down my search to two Sydney Suburbs I think offer the characteristics I need for that next investment.
As a bit of background I'm looking somewhere in the competitive $350-400K range with a focus on strong yielding (6%+) properties but which also have good fundamentals in the area for long term capital growth (CG).
So I'd really love to get the opinion from buyers agents and investors on these two suburbs. Have you bought there? Considered it? Any thoughts at all gratefully received.
Personally I was initially leaning towards Auburn with its strong geographical fundamentals, possibililty to get 7-8% gross yields when buying apartments and of course the considerable disparity in the prices of both houses and apartments compared to neighbouring suburbs i.e. Lidcombe. Therefor potentially bringing the ripple effect into play.
My reservations however are:
1.) Is the area over saturated in apartments? Are there more still going up?
2.) Does the predominantly Muslim demographic and Sharia law prohibiting the taking out of interest accruing loans significantly affect CG?
3.) Does the above consequently artificially inflate rent returns?
4.) Is all the negative sentiment albeit anecdotal (Somersoft contributions included) really justify not investing in the area or is it largely a case of xenophobia? (For the record I'm of Anglo background and hold all my current investments in largely Anglo areas so stepping into the unknown somewhat)
5.) Is the crime level really that bad compared to anywhere else out west?
For Liverpool, I have similar reservations to above although the negative comments towards it here on SS at least don't seem quite so abundant. It also doesn't offer quite as strong rent returns or the proximity to both the main Sydney CBD and 2nd CBD (Parramatta) that Auburn does.
Anyway would love everyones thoughts on the above, or if you feel somewhere completely different offers better prospects given my goals.
Also please feel free to rip my views to shred, im still very much learning
So I've tentatively narrowed down my search to two Sydney Suburbs I think offer the characteristics I need for that next investment.
As a bit of background I'm looking somewhere in the competitive $350-400K range with a focus on strong yielding (6%+) properties but which also have good fundamentals in the area for long term capital growth (CG).
So I'd really love to get the opinion from buyers agents and investors on these two suburbs. Have you bought there? Considered it? Any thoughts at all gratefully received.
Personally I was initially leaning towards Auburn with its strong geographical fundamentals, possibililty to get 7-8% gross yields when buying apartments and of course the considerable disparity in the prices of both houses and apartments compared to neighbouring suburbs i.e. Lidcombe. Therefor potentially bringing the ripple effect into play.
My reservations however are:
1.) Is the area over saturated in apartments? Are there more still going up?
2.) Does the predominantly Muslim demographic and Sharia law prohibiting the taking out of interest accruing loans significantly affect CG?
3.) Does the above consequently artificially inflate rent returns?
4.) Is all the negative sentiment albeit anecdotal (Somersoft contributions included) really justify not investing in the area or is it largely a case of xenophobia? (For the record I'm of Anglo background and hold all my current investments in largely Anglo areas so stepping into the unknown somewhat)
5.) Is the crime level really that bad compared to anywhere else out west?
For Liverpool, I have similar reservations to above although the negative comments towards it here on SS at least don't seem quite so abundant. It also doesn't offer quite as strong rent returns or the proximity to both the main Sydney CBD and 2nd CBD (Parramatta) that Auburn does.
Anyway would love everyones thoughts on the above, or if you feel somewhere completely different offers better prospects given my goals.
Also please feel free to rip my views to shred, im still very much learning
