Buy and Hold unit in Harris Park

Hi guys,

First of all, I am new to property investment. I was thinking to buy and hold a unit somewhere in Parramatta area. Given that Parramatta is outside of my budget range, I started to look around the surrounding suburbs (eg. Merrylands, Granville, etc).

Recently I have decided to go for a unit in Harris Park, around Allen St area near where the school is. The reasons are because I feel that HP area is quite close to Parra, growing small to medium business precinct, have a village feel, easy access to train station or M4 and still within 15km range from Sydney.

I noticed that the price of units has been increased quite dramatically since the last 1 - 2 years.

My budget is around 370 - 380k and expecting 5% yield from the property.
I am thinking to hold it for 5 - 10 years and wait for another cycle since I expect that Parramatta area will grow further..

Do you guys have any opinion or inputs? Does this sounds like a good plan?
 
Sounds like a well enough thought out plan to me. You seem to be aware that you MAY have missed out on the last cycle and may have to wait for the next one. If you go into it accepting this, that sounds ok.

But if I did have that opinion, i'd probably be putting my money down in other markets that isn't at that point of the cycle (Brisbane is a popular one at the moment). Velocity of returns is pretty important, so i'd rather not wait until the next cycle to earn my returns.

Nonetheless, i agree with your analysis of the strong fundamentals in the area.
 
Hi Redom,

Thank you for the reply, and thank you for the emphasise on 'return velocity' - I should consider it before and I will next time! I just did my move to took the chance on it :-D A little bit too late now.. Mind you this is my first time.

Previously, I was thinking about Merrylands, Granville and Blacktown too. However, in my opinion, Harris Park just got a better chance with for long term game.
 
I just started working in Parramatta, prices have moved so much. Looking at prices I agree, Harris Park is still a good option and I was thinking about that myself. It's so close to Parramatta. Otherwise I was thinking North Parramatta is an option but Harris Park is closer for my work! (And has a train station)
 
Harris Park is a winner! The growth probably won't be as strong as it has been in the last year but I suspect it will just keep moving upwards now. The area you suggest - near the school - is a good one.
There might be a time when it's an 'optimum' time to buy there again - lots will want to sell their investments again at some point. I just don't know when it's going to be. Not in the near future, I'd say.
I'm always on the look out 'cause I'd like to get another apartment there too.
Did you say you've bought something already?
 
Hi WattleIdo,

Yeap, I just bought one actually.. As I mentioned before, I am at the end of the cycle now but yeah, I don't mind to hold it since it has a reasonable yield of 5% anyway..

Hi Gockie, I am quite new to investment property. I thought the suburb is really reasonable. I do believe as things gets improved in near future, the suburb is just getting more and more liveable.

I have been following the market since last year, I can see the prices have been moving up a bit since last year by 10 - 20k already now..

Thanks for the responses guys, I am really grateful to hear your opinions!
 
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