Campbelltown or lakemba

[free_dom]

Hello,

I'm thinking of purchasing another ip in the campbelltown or lakemba area. I was looking to purchase a unit in one of these areas for about $280000. I am working with a buy and hold strategy for capital growth. Can anyone with ips in these areas comment on their experiences.

It would seen that lakemba and surrounding suburbs have have established capital growth. The buildings in these areas are most 25-35 years old.

Campbelltown is in a less established growth area with potential pick up in the coming years. Units under 5 yrs old can be purchased quite easily with good yields.

Thanks

 

[neK]

I havent seen much growth in the units in Lakemba over the last few years... houses yes... but not units.

 

[Scott No Mates]

Ned, you would be hard pushed to find anything well located (near station) in Lakemba for less than $300k, this is around 20-25% more than early last year. Yes, it is older stock in need of work but rentals are quite good.

 

[free_dom]

Your investment property mag stats suggest that lakemba grew by 21% over the last 3 yrs and and campbelltown 9%.

 

[Scott No Mates]

Your investment property mag stats suggest that lakemba grew by 21% over the last 3 yrs and and campbelltown 9%.

I don't have an investment magazine.

 

[neK]

Lakemba / Wiley Park / Punchbowl has a certain stigma that has been hard to shake.

If you follow the train line, the suburbs around it have all gone up. Theoretically one would think that the one closer to the CBD would go up more but I havent found that to be the case.

eg. Canterbury > Campsie > Belmore > Lakemba > Wiley Park > Punchbowl > Bankstown.

Instead it looks more like

eg. Canterbury > Campsie > Belmore > Bankstown > Punchbowl > Wiley Park > Lakemba

 

[Elstupido]

You are wrong nek

This is the correct one:

Canterbury >>> Campsie >>> Belmore >>> Lakemba >>> Wiley Park >>> Bankstown >>> Punchbowl

The old units in Lakemba sold for more money than the new unit in Bankstown

 

[Elstupido]

One of friends just bought a unit in Bankstown because he can't afford Lakemba for a PPOR

 

[Feradd]

I've held a standard 2 bed unit in Lakemba for 3 years and it's gone up 20% in that time and that's in a low growth period. The reason why I purchased in Lakemba is because it's close to the city, on a train line, high yields and low buy in price. I did'nt want to spend too much in Sydney as I wanted to use funds to invest elsewhere. The only box it doesn't tick is the stigma associated with the area but without this the buy in price would be much higher and the stigma is the lowest ranking attribute I give when making these decisions as the above reasons hold more weight in my opinion.

I would expect some ripple effect to occur from inner west closer to the city along the train lines. As prices and rents rise the bad apples of Lakemba hopefully will diminish and improve peoples perception and property prices.

Never had any problems with tennants.

These properties are probably cash flow positive now in this low IR environment using tax depreciation.

 

[Edmond Dantes]

I've held a standard 2 bed unit in Lakemba for 3 years and it's gone up 20% in that time and that's in a low growth period. The reason why I purchased in Lakemba is because it's close to the city, on a train line, high yields and low buy in price. I did'nt want to spend too much in Sydney as I wanted to use funds to invest elsewhere. The only box it doesn't tick is the stigma associated with the area but without this the buy in price would be much higher and the stigma is the lowest ranking attribute I give when making these decisions as the above reasons hold more weight in my opinion.

I would expect some ripple effect to occur from inner west closer to the city along the train lines. As prices and rents rise the bad apples of Lakemba hopefully will diminish and improve peoples perception and property prices.

Never had any problems with tennants.

These properties are probably cash flow positive now in this low IR environment using tax depreciation.

Agree with you Feradd. To be honest, I don't really look into the "stigma" thing, as long as there is potential and good returns. Where else in Sydney can you buy so close to the city with good returns?

 

[Scott No Mates]

You can't buy stigma, it comes with the area. As noted, Bankstown & Lakemba both get the bad press so the adjoining suburbs might be a better bet.

 

[cimbom]

Is "stigma" a polite way of saying that lots of Muslims live there?

It may be a generalisation but in terms of relatively low-end rentals, you have a far better chance of getting a "house-proud" tenant that actually looks after their rental (and pays rent) in a largely migrant area.

 

[gronk007]

Saw a barb wire fence surrounding a child care centre at Campbelltown a little while back.

I would say none of the above.

 

[Scott No Mates]

Geez they breed the kids tough out there.

 

[Elstupido]

Is "stigma" a polite way of saying that lots of Muslims live there?

It may be a generalisation but in terms of relatively low-end rentals, you have a far better chance of getting a "house-proud" tenant that actually looks after their rental (and pays rent) in a largely migrant area.

+1

Investors make money out of these migrants, yet still giving them bad stigma.

The leading local REA is non-migrant (Knapton) and they have been in the business for many generations.

 

[free_dom]

I think I will put my money in a unit in the campbelltown area. The place im looking at has yields of 7.4% combined that with a IO mortgage under 5% and it looks like your on a good wicket.

 

[ndpjai]

I think I will put my money in a unit in the campbelltown area. The place im looking at has yields of 7.4% combined that with a IO mortgage under 5% and it looks like your on a good wicket.

Why not Liverpool, which is similar price to lakemba & campbelltown and even nearer than campbelltown.

As sydney west is going crazy at the moment, south west should be the best choice for good deals.