Bisbane or Sydney??

[jc.boote]

Hello Everyone,
I am starting to do my head in with my research and would love some comments on were to buy my third IP. I have two in Melbourne so Im thinking its is time to look interstate.
Have about $350k to spend and are looking at good rental return (5.5% +) and would prefer a house over a unit/townhouse.
Have been looking around Redbank Plains and Logan in Brissy, and Emerton and campbelltown areas in Sydney.


Would appreciate any help.

Thanks.

 

[Mumbai Indians]

Campbelltown

Hi,

Nice to know that you are exploring diversification interstate. I have couple of IP's around Campbelltown. Depending on what you are looking at, you can get a decent 2 bedder house about 15 yrs old around 275 - 300 mark.

The rental market is quite strong and you can expect rent around 330 - 350 PW.

The upside for Campbelltown is also strong as South West Sydney is poised for growth and areas beyond Campbelltown are already growing. I am taking a 5-7 yrs view for capital growth.

I am also exploring Brisbane and Melbourne as I have few IP's in & around Sydney.

Good Luck!!

Regards

 

[ziggy2214]

Have about $350k to spend and are looking at good rental return (5.5% +) and would prefer a house over a unit/townhouse.

5.5% are easy to get in Sydney's Western suburbs.

You can look at properties in the range $350-370K and make offers. Check out Lurnea, its closer than Cambeltown and rents could be a little higher

 

[murph14]

Sydney's south/west I would be looking for 7-10% yields. Suburbs you mention are good.

 

[Jacque]

Hello Everyone,
I am starting to do my head in with my research and would love some comments on were to buy my third IP. I have two in Melbourne so Im thinking its is time to look interstate.
Have about $350k to spend and are looking at good rental return (5.5% +) and would prefer a house over a unit/townhouse.
Have been looking around Redbank Plains and Logan in Brissy, and Emerton and campbelltown areas in Sydney.


Would appreciate any help.

Thanks.

Can't help you with Brissy but $350K will also get you houses in other suburbs besides just Emerton. Try looking closer in to suburbs such as Doonside, Blacktown and possibly Seven Hills. Yields good and rising

 

[jc.boote]

Thanks for the feedback, we are know looking at a new 3b2bath1car townhouse in Berrinba in Brisbane in the new Freshwater drive area - they are asking $312k and rekon you could get $340/week? and the other one is a newish (2 year old) 4b2bath2car townhouse in Mount Druitt asking $320k and they told us we could get $400+/week?

Just wondering if anyone has anything good or bad to say about either property selections.

thanks.

 

[ziggy2214]

Just wondering if anyone has anything good or bad to say about either property selections.

My choice would be the one with the highest yield.
Personaly I wouldn't buy in the Qld market with such low yields.
How are the strata fees and council rates?
Is this new area flood free?

 

[skater]

For that kind of spend, you could buy a lot in either Campbelltown or Mt Druitt suburbs. Both of them rent easily and have high yields. I've got properties in both areas and I'm increasing the rents every six months. I have been doing this for some time now and rents have doubled on some and almost doubled on others from what they were not that long ago.

 

[jc.boote]

Thanks Ziggy2214,
Body corp is $1400 year and council rates are approx $1300.
To be honest this QLD property is my wifes choice as it is listed as "Green" with solar hot water, rainwater tank, grey water system etc - I am trying to convince her to look at the sydney properties.
According to the agent the property isnt in a flood area, we have looked on council websites also.

 

[jc.boote]

Thanks Skater,
what suburb would you prefer? Campbelltown or Mount Druitt, we are living in SA and have never been to Sydney so are flying blind a bit.
I thought the townhouse in Mount druitt because of the rental yeild and also being slightly closer to CBD??
would love your thoughts again.

Thanks

 

[Andrew_A]

Thanks for the feedback, we are know looking at a new 3b2bath1car townhouse in Berrinba in Brisbane in the new Freshwater drive area - they are asking $312k and rekon you could get $340/week? and the other one is a newish (2 year old) 4b2bath2car townhouse in Mount Druitt asking $320k and they told us we could get $400+/week?

Just wondering if anyone has anything good or bad to say about either property selections.

thanks.

You can get 4 bedroom new brick houses <350k in areas nearby, also there is a lot of established housing around Berrinba and under 300k, one big consideration with this area which really should place a cap on townhouse prices. There is also plenty of subdivision of larger sites for house builds going on, so it's important to make sure you aren't overpaying around here.

 

[gottabespotless]

Mt Druitt? Obviously the crime and unemployment rates of an area don't worry some investors?

 

[skater]

Thanks Skater,
what suburb would you prefer? Campbelltown or Mount Druitt, we are living in SA and have never been to Sydney so are flying blind a bit.
I thought the townhouse in Mount druitt because of the rental yeild and also being slightly closer to CBD??
would love your thoughts again.

Thanks

I've had equally good results. Both are on a train line, so easy access to the CBD. It all depends on what type of property you prefer. You can get a 3 bed ex housing dept home for under $220k which will rent for up to $300pw in Mt Druitt, or you can get something a bit nicer with an equally good rental return in some of the better suburbs in the same area.

Campbelltown is a similar story, although less of the housing dept homes available, so your entry price can be a little more. There are lots of good homes with very good yeilds.

 

[DaveM]

Mt Druitt? Obviously the crime and unemployment rates of an area don't worry some investors?

Spoken like someone who's experience of the area is likely only what is seen on A Current Affair and in sensationalised news broadcasts?

The rental market in western sydney is incredibly tight - low buy in cost, high yield, long term suburb gentrification... its a long term investors dream come true.

There has been plenty of discussion on Mt Druitt here and pretty much everyone holding property has been positive about it (myself included) so long as you have good property management.

 

[DaveM]

You can get a 3 bed ex housing dept home for under $220k which will rent for up to $300pw in Mt Druitt, or you can get something a bit nicer with an equally good rental return in some of the better suburbs in the same area.

Where have you been seeing sub $220k in Mt Druitt? I have been sniffing around a number of 3-4br in willmot/tregear/shavley areas where low 200's will get an ex commission with rental potential up to $300-320. I am not convinced on the long term CG prospects though.

 

[skater]

Spoken like someone who's experience of the area is likely only what is seen on A Current Affair and in sensationalised news broadcasts?

The rental market in western sydney is incredibly tight - low buy in cost, high yield, long term suburb gentrification... its a long term investors dream come true.

There has been plenty of discussion on Mt Druitt here and pretty much everyone holding property has been positive about it (myself included) so long as you have good property management.

I am not convinced on the long term CG prospects though.

Dave, your two posts seem to contradict themselves.

You are right, the rental market is quite tight. There is gentrification happening and the H/C are in the process of systematically selling off a certain amount of stock on a regular basis.

As for where I can find sub $220k properties, well, I'm local to the area, so I know it well. I'm not going to say where they are on the forum because I'm once again looking as it seems that both my children are in the market and neither of them are in high paying jobs, so my priorities lie there. I will say, though, that my price point is lower again than that, AND that I will achieve it easily if my children decide to purchase.

 

[DaveM]

Dave, your two posts seem to contradict themselves.

CG I meant for areas like Willmot. I cant really see them going anywhere much in the next 5 years. Whilstever there is a housing commission element to it, they dont lend themselves to gentrification.

Like Cranebrook... the northern park is booming like crazy, yet the southern ex Mt Pleasant end is nowhere near it price wise. Theres a 4Br house on Sherringham Rd thats been trying to sell for a year. Beautiful house but its right where the houses stop and commission starts. As a result nobody wants to buy it, and its been dropping and dropping in price. Started off around $360k and its now going to auction with a price guide of $269-$309k.

Places like Mt Druitt, Plumpton, Oxley Park etc are moving ahead leaps and bounds.

 

[rexilla99]

Brisbane ! only because I live here and we have great weather all year round.

 

[Cherry Pro]

Dave, just exchanged on a 4 bedder brick and tile in the Mount Druitt area,
700+ block with teenage retreat / granny flat, at $240 k. Needs a bit of reno and will return $350 - $370 per week. Taken me a few months to find but I'm happy.

Skater, thanks for your inputs earlier.

J.C. Boote - I was in a similar position about 2 month ago and trawled through many homes in both C'town and Mount Druitt. Must say that C'town has a bit more going for it, there's a buzz and a lot of development going in but the yields were better in Mount Druitt. Besides my previous purchase was in C'town.

Either way, don't think you'll go wrong. Wish you luck.

Amelia

 

[DaveM]

Dave, just exchanged on a 4 bedder brick and tile in the Mount Druitt area,
700+ block with teenage retreat / granny flat, at $240 k. Needs a bit of reno and will return $350 - $370 per week. Taken me a few months to find but I'm happy.

Hey Amelia

Great work! Will the granny flat be rentable (ie does it have planning permission)? Either way its a good return.

How much reno does it need?

There are some good returning pockets around Mt Druitt area.... just got to pick your streets carefully when you get into places like Whalan/Tregear/Lethbridge Park etc.

My latest purchase (exchanged last week) is in Cambridge Park in a nice quiet family friendly street near the school. Paid a smidge over $300k and with recarpet/paint has been appraised at $380-$400pw. Its over 6% and whilst it is a good return and I could have gotten better overall gross rent return somewhere else, its proximity to Penrith CBD means more likelihood of future gain.