Doonside - to buy or not to buy (for investment)

D

doobee

Hi,

I am brand new to this forum but have been reading/following some threads and it seems like a really helpful and knowledgeable community.

I am humbly seeking some advice on property investment/possible small development project.

I have a budget of around $1.2-1.5m.

Initially looked at Ryde area, but backed away due to the craziness there right now. Also land tax too.

Am seriously considering investing in the Blacktown area. Have been looking at Kings Park, Blacktown, Seven Hill, Quakers Hill etc for the last few months.

A real estate agent mentioned there are 2 adjacent properties (approx 1500m2 total) coming onto the market within 500m from Doonside station for approx $1m. That potentially in a few years will be re-zoned to allow high density developments.

Am thinking to just hold on to these for the time being, put some granny flats on them to increase yield until I have enough knowledge and/or funds to develop them?

Can anyone please advice whether this is a good strategy or most likely end bad or go no where? Also because I have heard and read Doonside isn't the safest suburb with the Blacktown area. Will this change in the next few years? Or should I look in other suburbs of Blacktown instead?

Thanks for any advice, really appreciate it. :)
(first time investor)
 
Haven't researched the area, but if I was spending $1M it wouldn't be a but and hold on a potential development site. I would want it to stack up without changes if they aren't guaranteed.
 
Blacktown council just reasoned a lot of land. I would check with a town planner. It is public knowledge? Don't rely on agent. The rezoning move was to prevent random development.

Don't trust the agent
 
The rezoning of Blacktown is in draft and has not been gazette/official. They have changed the zoning from it's initial draft. For example, it was suppose to zoned as R3 in 1-2 streets, but now R2 due to resident feedback.
But more importantly, Doonside is not marked as urban growth centre, meaning Council will spend minimal $$. Blacktown CBD, Rooty Hill and Mt Druitt are the ones marked.
BUT Doonside is relative lower entry price compare to some other Blacktown LGA, and has still a pocket Housing Commission properties in certain street.
Hope this helps.
 
Thanks Baby Blue Eyes and RetireRich101 for your comments.
Yes, am not too sure whether to take Agent's word or not and wanted to do my own research. I guess there's so much more research to be done. And so much more for me to learn.
Thanks again, really appreciate it. :)
 
doobee said:
Hi,

I have heard and read Doonside isn't the safest suburb with the Blacktown area.
Click to expand...

You don't seem to know Doonside a lot based on your comment above. In fact, it's the least safe suburb in Blacktown LGA.

There seems more uncertainty than certainty in your deal. Also, I wouldn't recommend you start with sth big as a first time investor.
 
Hi mmmggg01,

Thanks for your point about the least safe part. I didn't know.

I would really appreciate some ideas on how best to invest $1.2m in property.

As mentioned before, I initially looked into North Ryde area but realized it's way too pricey, with poor yield. Someone suggested I might be better off buying 2 $500k properties where it will give me better yield, and potentially similar CG in the long run.

Then my thinking is to invest in something that has potential in the long term for further development, ie, corner block or large piece of land with potential to build duplex on, or like in this instance to buy 2 adjacent land that has potential in future (when funds allow) to develop.

Any thoughts/ideas/guidance will be appreciated.
 
So far everyone has been nice - so I'm going to go against the grain.

You obviously got more money that sense, but as they say a fool and his money are soon parted.

You're asking for investment advice on what to do with $1.2m off an internet forum from people who you don't know a bar of (they could be a Nigerian prince for all i know).

I seriously encourage you to just READ through threads in this forum and form your own opinion. Posting a question is not going to give you the answer you need.

That said, you could actually be really smart and have another agenda behind your post. Either way - hope you get what you need and everything works out :)
 
Have you tried looking interstate?

Parts of Brisbane has some pretty good yields and CG potential and quite a few investors here advocate Adelaide...
 
neK,
Well, maybe I am a bit gullible. But asking and reading through these replies is a learning experience for me. I might learn something, I might now, but it definitely doesn't hurt I figure. =)

MXia,
I was originally from Adelaide, still holding onto 2 IP there, they haven't gone anywhere much over the last 7-10 yrs. So am a bit hesitant to invest there again.
As for other areas interstate, I am the type that's more comfortable seeing the places before buying, w 2 young kids, this is just not practical.
Thanks for your suggestions though. =)
 
doobee said:
neK,
Well, maybe I am a bit gullible. But asking and reading through these replies is a learning experience for me. I might learn something, I might now, but it definitely doesn't hurt I figure. =)

MXia,
I was originally from Adelaide, still holding onto 2 IP there, they haven't gone anywhere much over the last 7-10 yrs. So am a bit hesitant to invest there again.
As for other areas interstate, I am the type that's more comfortable seeing the places before buying, w 2 young kids, this is just not practical.
Thanks for your suggestions though. =)
Click to expand...

My first newbie investment as an off the plan studio in Sydney, it hasn't moved much in 7 years either :)

I guess it depends on what you buy. Quite a few threads here on Adelaide and people doing well with their investments.

Perhaps take a day trip to check out the places in person. I have been flying to Brissie almost every second weekend as I feel more comfortable with seeing the places too. Air flights hurt but I guess it's the cost of doing business.

Good luck. You have found the right forum, so that's an awesome start.
 
doobee said:
neK,
Well, maybe I am a bit gullible. But asking and reading through these replies is a learning experience for me. I might learn something, I might now, but it definitely doesn't hurt I figure. =)
Click to expand...

Which is why i said search through the forum and read through the different threads. You'll be amazed at what info you find.

Anyway, it just occurred to me that the threads you are posting pretty much indicate you are a walking dollar sign waiting to be fleeced. Hopefully you don't come across that in real life because there will be heaps of people waiting to screw you over.
 
Thanks MXia,
Thanks for making me feel better, and thanks for being kind.
I did wonder about Brisbane for a minute, then thought since I was not even half way through researching the local areas in Sydney, better stick to one thing at a time.
I have also wondered about maybe the Lower Hunter region, as it's kind of commutable on a long drive on the weekend..... rather than paying for airfares......
 
Hi neK,
Thanks also for your friendly word of warning. Yes, I do have to be more careful like you said. Sometimes I do tend to be too simple minded. =P
I will keep researching and read, read and read more threads.. =)
 
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