Cabramatta unit vs Minto house, NSW

[testingw00]

Hi guys,

Looking to purchase another IP, planning to buy something that I can do a makeover, renovate and hold long term.

I am deciding between a 2 bedroom unit in Cabramatta NSW, very close to the Cabramatta CBD or a 3 bedroom house in Minto NSW. I am generally conservative, but I would like capital growth in the next purchase and reduce my tax debt through negative gearing. I don't know the suburb of Minto very well.

Which one would yield me better results in the long term? I am concerned that a Cabramatta unit won't be as great in terms of capital growth but I know renting a unit out there isn't an issue. But will a Minto house be more prone to being vacant, as I feel there would be more buyers there than renters - therefore higher risk?

Thanks all.

 

[Propertunity]

I am deciding between a 2 bedroom unit in Cabramatta NSW, very close to the Cabramatta CBD or a 3 bedroom house in Minto NSW.

If you were making this decision 15 years ago, then with the benefit of hindsight now, you'd have been better off investing in the Cabramatta Unit which has shown superior CG over that time. Next 15 years - who knows?

Vacancy rates can be found here: www.http://sqmresearch.com.au/

Census stats on renters Vs owner occupiers can be found on the australian bureau of statistics site (if you can navigate around www.abs.gov.au/), or alternatively you can get a free suburb flyover report with this info on my website here: http://www.propertunity.com.au/buying/area/ at the bottom of the page, type the suburb name slowly and select from the drop-down box.

 

[datto]

I got a 1 bedda in Cabra, never vacant since I bought it nearly 10 yrs ago.

It gone up heaps. 2 beddas near the shops, say Hughes St, are now well over 400K. Houses in the area are hitting 1 mill.

How much more upside there is in CG? Crystal ball stuff but my gut tells me it can't go much higher, surely.

I've looked at Minto coz I think you get more bang for your buck.

 

[MightyWill]

Cab any day; it's changing and families who know how to save and don't go out to pubs every weekend want to live here. You can't compare Minto to Cab.

 

[testingw00]

Thanks for the replies, all.

Hmm... tough choices to make.

Cabramatta units do appear to be a safer investment option - there also appears to be some major redevelopments happening as well in the Dutton Lane carpark to build more shops - which signifies to me that CBD growth is on the rise.

Yes there's a slightly more risk buying into Minto, but with the recent redevelopments, it's hard to say because there's definitely room for growth there with a house and land.

Otherwise, may as well go for 2 loans at 95% + LMI and buy one IP in each Suburb.

Probably best to take a drive around both areas this weekend and get a good feel of the atmosphere.

 

[miss green eyes]

Hi datto,
Wow your one bedda rents out well? I always thought one beddas in syd only rent out well in the cbd, inner west, lower north shore and the east
I had considered cabra myself but I'd like a 2 bedda (not hard to find) in a well maintained block (hard to find).

 

[WattleIdo]

Thanks for the replies, all.

Hmm... tough choices to make.

Cabramatta units do appear to be a safer investment option - there also appears to be some major redevelopments happening as well in the Dutton Lane carpark to build more shops - which signifies to me that CBD growth is on the rise.

Yes there's a slightly more risk buying into Minto, but with the recent redevelopments, it's hard to say because there's definitely room for growth there with a house and land.

Otherwise, may as well go for 2 loans at 95% + LMI and buy one IP in each Suburb.

Probably best to take a drive around both areas this weekend and get a good feel of the atmosphere.

How 'bout looking in both places and taking the best deal you can find?

 

[Propertunity]

...Otherwise, may as well go for 2 loans ...... and buy one IP in each Suburb.

That's usually my smartie pants advice, when people are undecided on a choice between 2 good options.

 

[Evgen]

Recently bought my first IP in Minto (new house which is going to be constructed by the end of next year). Put down land deposit. Hope we see a bit more CG by the time the land is registered (mid next year) and the house is constructed.

I think Minto has got a lot of potential with the mall recently renovated, more and more businesses come in. Also, new people move in which should hopefully improve the suburb's housing commission stigma over time.

I'd vote Minto. Haven't been to Cabramatta though.

 

[datto]

Hi datto,
Wow your one bedda rents out well? I always thought one beddas in syd only rent out well in the cbd, inner west, lower north shore and the east
I had considered cabra myself but I'd like a 2 bedda (not hard to find) in a well maintained block (hard to find).

I bought my 1 bedda coz it had special features - 2 storerooms (each 4m x 4m) plus a tandem garage. These are very rare features and the tenant loves it. Plus small block with high ceilings. I got good bang for my buck with this one but it's a one off I think.

Building is run down though. Just like many of the buildings in Cabra. Minto seems to have a newer fresher look, which I like.

 

[miss green eyes]

Hi Datto,
Had you wondered what your tenant is using the storage and garage for?
He might be a motor enthusiast

This is an example of a unit in Cabra that would attract me. Looks like a well-kept block

http://www.realestate.com.au/property-house-nsw-cabramatta-117838691

 

[datto]

Hi Datto,
Had you wondered what your tenant is using the storage and garage for?
He might be a motor enthusiast

This is an example of a unit in Cabra that would attract me. Looks like a well-kept block

http://www.realestate.com.au/property-house-nsw-cabramatta-117838691

Well, the storerooms are used for hoarding junk eg old furniture, boxes of clothing and the like. Tenant doesn't drive.

That property you have a link to is now under contract. I recognise it, its 4 - 6 Fisher St Cabra.

Look carefully at the different coloured bricks at the bottom of the block. The under building car ports have been bricked up and converted to garages.

It is pretty neat and is in close proximity to shops and station.

 

[miss green eyes]

Well, the storerooms are used for hoarding junk eg old furniture, boxes of clothing and the like. Tenant doesn't drive.

That property you have a link to is now under contract. I recognise it, its 4 - 6 Fisher St Cabra.

Look carefully at the different coloured bricks at the bottom of the block. The under building car ports have been bricked up and converted to garages.

It is pretty neat and is in close proximity to shops and station.

Do you conduct inspections for your IP?

Yes, I know the property is under contract, it was an example of a well-kept block in cabra. Most of them are really run down. The well-kept ones sell pretty quick, so I'll need to be on the ball if and when I do start looking seriously.
The thing that worries me is....most ground and 1st floor apartments have security grilles.
Now, ground floor yes, but 1st floor hmmm....
it just makes me wonder.....

 

[datto]

Usually agent does the inspections. But I attend IP to do minor repairs and have a squiz around while I'm there.

It's quite rare but I have had first hand reports of 1st floor units being robbed. Running a 240 volt current through the balcony rail is a handy deterent lol.....but you could get in trouble with the law.