Eastlakes sydney, a good investment surburb?

[p_invester]

Hi all,
thanks for drop by. there is a property in Eastlakes sydney for 490K 2bdr,1 bath,1 car space. council $935/q,w $694/q,stra $477/q.
do you think it's good buy? I am aiming for long term capital growth, slightly negative gear.
thank you very much for all your input.

 

[Richard Feynman]

Are you sure those council and water figures are per quarter? They look annual to me.

 

[miss green eyes]

IMHO eastlakes is a rather undervalued suburb as it's actually close to the CBD and a uni.
However, it seems the lack of public transport has depressed CG and rental.
I have been to rental opens there and there was not alot of competition.
I can't say if this will improve in the future though.
Demographics: it's a 'Little Bangladesh' and tenants seem to be working class.
There is at least one big block of housing commission there.

 

[WattleIdo]

Has always seemed to be an 'in-between' place to me i.e. somewhere that you drive through on your way somewhere else.
But really, how can it possibly stay cheap for long? Look how close it is to everything!
It may be one of the few 'ugly ducklings' left around inner Sydney.
Might re-look at the area myself ....

 

[kamchatsky]

Eastlakes used to have a MacDonalds however it was closed and converted to Arab grocery store. I have never seen Macdonalds close before .....

However the shopping area is planning to be revitalised with new shopping village proposal below:

http://eastlakesvillage.com.au/

However it is under investigation by ICAC due to possible corruption in getting this proposal approved.

 

[p_invester]

Are you sure those council and water figures are per quarter? They look annual to me.

You are correct Richard, my bad those are annual expenses.

 

[p_invester]

Has always seemed to be an 'in-between' place to me i.e. somewhere that you drive through on your way somewhere else.
But really, how can it possibly stay cheap for long? Look how close it is to everything!
It may be one of the few 'ugly ducklings' left around inner Sydney.
Might re-look at the area myself ....

Thanks, that's why it puzzle me, I still can't decide whether step in or not.

 

[p_invester]

IMHO eastlakes is a rather undervalued suburb as it's actually close to the CBD and a uni.
However, it seems the lack of public transport has depressed CG and rental.
I have been to rental opens there and there was not alot of competition.
I can't say if this will improve in the future though.
Demographics: it's a 'Little Bangladesh' and tenants seem to be working class.
There is at least one big block of housing commission there.

thanks for your input. sure it must be a reason for undervalue for such a long time. Did a quick research valuation back between 440K-550K. will go inspection this weekend to see how it looks.

 

[miss green eyes]

You're welcome.
I think the under-valuation comes from what I mentioned before:
Housing commission
Lack of public transport
lack of shops
As someone else mentioned, the area is being rejuvenated. However, it seems the rejuvenation will only bring a handful of shops in, it's not like they're building a westfield there, so it may or may not increase prices alot.
Having said all of that, eastGARDENS (not eastLAKES) is close by - there is a westfield there, plenty of buses, but there's also not been alot of CG or great rentals. I don't know why either.

 

[p_invester]

You're welcome.
I think the under-valuation comes from what I mentioned before:
Housing commission
Lack of public transport
lack of shops
As someone else mentioned, the area is being rejuvenated. However, it seems the rejuvenation will only bring a handful of shops in, it's not like they're building a westfield there, so it may or may not increase prices alot.
Having said all of that, eastGARDENS (not eastLAKES) is close by - there is a westfield there, plenty of buses, but there's also not been alot of CG or great rentals. I don't know why either.

Thanks for your input. Yeah did inspection over the weekend and I believe I will pass this time based on.
1. even the rent is 495/w and it does work out the number.
2. the property is at first floor of 3 level block. it's 20 yrs old building anyway. not so much of depreciation can claim too. recently reno, also no space you can put value on.
3. as other great input in the post, mostly working class there. I was managed to talk to the owner downstairs who have been there since 1998.
4. the property does not have any unique features that can attract better tenant ( I am not saying the existing is not good )
Then, I will have to search more for a better investment opportunity.
Agree with you Eastergardens seems to be another interesting location too. Hillsdale will be the next I am going to investage, then other surroundings like kensington, bondi those blue chips. Still have not decide I should put my investment in blue chips for such a high price for now. will see

 

[miss green eyes]

Bit tired so this post will be short.
Re: hillsdale alot of council housing and lower socio-economic scale dwellers (meaning, lower than working class) there. Feels alot less safe than eastlakes to me.
However, not everyone shares the same views.
Council housing is concentrated in the american-names streets apparently. Also, units walking distance (meaning about 15 mins or so I guess) from maroubra cost more.
Hillsdale beats eastlakes in terms of shops and transport (if you can walk to maroubra).
Night.