Fairfield, Sydney VERSUS St Marys, Sydney - Thoughts??

[C-mac]

Hi guys,

My strategy has changed dramatically overnight, which has left me with a surplus to consider an additional high-yielding property.

I'd like to stick to Sydney (part of my strategy). I already have one IP in St Marys which I'm very pleased with (Bought 18 months ago, $180K, returns $260pw rent and has shown a little bit of CG too!).

It's like this: I have less than $200K to spend on another IP that needs to be high-yielding, and in in Sydney. There are two suburbs where such a bracket seems a worthy pursuit:

1) St Marys - 45km from CBD (for above high yield and decent CG reasons)
2) Fairfield/Cabramatta and surrounds - 20km from CBD (I know it's got a rough reputation but yields are similar to St Marys for the sub-$200K market)
3) Guildford - 25km from CBD (again, rougher area but decent yields)

The appeal of Fairfield/Cabramatta is it's the closest CBD-proxmity (with good transport; so city-workers have appeal for this area). For St Marys the appeal is it's the most 'pleasant' liveable area of the three. Guildford... um... not sure what the appeal is (maybe the lack of appeal should rule it out already!) but having lived in Parramatta I've never felt 'safe' wandering through Guildford...

My St Marys tenants (I've had two lots of them so far) have both been excellent (maybe I got lucky? Nah, I think I just have an excellent, selective, agency picking the right tenants).

Keen to hear of any other options within 40km radius of downtown Sydney city.

Basically, where would be best to invest, of these options. Yield is primary objective; slow CG is a given with such properties/areas, I know, so yield-wise, I think these are the best Sydney options in this pricerange.

 

[BV]

I'd go as close to the CBD as possible and look for a 2 bedder.
Don't discount Guildford , check rents out because it isn't far from Parramatta which is the geographical centre of Sydney and 2nd CBD.
For a bit over $200K you might be able to get a 2 bedder in Warwick farm and which is walking distance to train station and Westfield Liverpool.

 

[C-mac]

Thanks for this Bill.
Great advice.
I'm also thinking that diversifying my portfolio is a good strategy. Having two in the same suburb seems like a risk.

If I look at guildford/warwick farm this would break up the porfolio a bit better.

 

[virgo]

Where to buy

Hiya

I would stick as close to Parramatta as possible....it's coming to its own as 2nd CBD; plenty of new migrants flocking into the area bring about lots of demand for housing...not Guildford tho; i have one IP in Greystanes AND i have always felt safe there.....to do with the demographics methinks! not sure what you can get for that budget tho?

 

[Belbo]

I'd go as close to the CBD as possible and look for a 2 bedder.
Don't discount Guildford , check rents out because it isn't far from Parramatta which is the geographical centre of Sydney and 2nd CBD.
For a bit over $200K you might be able to get a 2 bedder in Warwick farm and which is walking distance to train station and Westfield Liverpool.

If Parramatta is No 2, and Chatswood is No 3, and Green Square will be No 4 (I'm guessing now), where will No 5 be? That's where I want to invest next.

Sorry if this is a bit off-topic, but I'd like to catch all the growth (street names also would be appreciated, please BV. )

 

[C-mac]

Agreed with all posters on this one! Though Green Square and Chatswood are definately out of my $200K budget!

Greystanes has come up on numerous blog posts here with positive praise. I'm going to investigate that

Seems like a great area though sub 200K might be pushing it?

 

[BV]

If Parramatta is No 2, and Chatswood is No 3, and Green Square will be No 4 (I'm guessing now), where will No 5 be? That's where I want to invest next.

Sorry if this is a bit off-topic, but I'd like to catch all the growth (street names also would be appreciated, please BV. )

Belbo mate I'd be careful not to catch that falling knife
Personally I'm not predicting a lot of growth, but I'm sure growth will come over time,
we just have to be strong enough to withstand a long period of little or no growth.

Where to buy?
Anywhere in Sydney where you can get yields close to 7%.
My theory is that if a property costs me nothing to hold I can hold it forever.

Best long term growth?
If I were to buy tomorrow, my glass ball says Mt Druitt and surrounding suburbs.
But someone told me you need to have B@@ls made of steel to buy there

 

[Belbo]

I heard the same about if you have to live there!

Talking about falling knives, have you heard the one about the Mad Monk and the missing policy package? It's a scream!

 

[locko24]

I'd go as close to the CBD as possible and look for a 2 bedder.
Don't discount Guildford , check rents out because it isn't far from Parramatta which is the geographical centre of Sydney and 2nd CBD.
For a bit over $200K you might be able to get a 2 bedder in Warwick farm and which is walking distance to train station and Westfield Liverpool.

I'll vote for whatever he says
(seems to know quite a bit)

 

[JTBT]

Great thread! been thinking about these areas lately too! But was looking at townhouse option in St Marys

 

[BV]

Talking about falling knives, have you heard the one about the Mad Monk and the missing policy package? It's a scream!

No but I don't know if they'll knife him on the back because voters don't like that sort of thing.
And ofcourse as we all know BarryO didn't have 1 single policy and still won.
(Labor know how to stuff things up (at both fed and state levels))

 

[Belbo]

Not on my account. If I had may way this thread would be about how to make BV buy 2 properties in Mt Druitt in a month and not sing in soprano!

 

[BV]

I'm also thinking that diversifying my portfolio is a good strategy.
Having two in the same suburb seems like a risk.

No its not a risk mate, it could work in your favour because you can get the same agent to manage them both and negotiate a lower management fee.

With this in mind, check out this property in North St Marys.
http://www.domain.com.au/Property/For-Sale/House/NSW/North-St-Marys/?adid=2008970385
I've seen it, apart from the side fence it doesn't need much more.
The fence is shown in one of the pics (next to the swing)

Tenants look after the place and its in one of the better streets.
I didn't buy it because I was looking for a 3 bedder.
You should be able to get it for $230K

 

[BV]

Not on my account. If I had may way this thread would be about how to make BV buy 2 properties in Mt Druitt in a month and not sing in soprano!

Actually I had 2 more lined up in a neighbouring suburb but I was advised to wait till my first 2 settle in 3 week time

 

[C-mac]

Hi everyone,

Thanks for the additional responses, this really does help steer my research greatly!

BV, some great feedback from you and much appreciated; It seems that people are concurring that St Marys is the pick of the bunch for this price range.
I've had such a positive experience there already, why not double-dip?

I've discounted Greystanes (too expensive), guildford (sorry, still not convinced) but still considering warwick farm.

St Marys is (for want of a better phrase) a diamond in the rough. Well, maybe an unpolished blood diamond... but you get my drift. When researching for my first IP there, I walked the Queen Street strip and ate both a breakfast and a lunch in two different cafes, engaging with local shop owners and cafe-dwellers about their suburb. It's no Paddington, or Norton Street, sure, but it's actually quite pleasant when compared to the main drags of every neighbouring suburb. There's actually a bit of a community feel about it.
This seems to be the reason that a 2bdr unit in St Marys demands such comparatively high rents, no?


The only thing is, BV, I'm only looking at units and villas at the moment. Don't get me wrong I LOVE the idea of adding a house to my portfolio, it's just with my job being so demanding, I treasure my weekends too much to be concerned with fixing/maintaining land-properties like houses on blocks. This is why I prefer units - strata takes care of everything in the background!

I'm also heeding folks' comments about anything returning 7% or more, being a good ticket.

 

[tlp]

Hi,

Have you considered Lakemba? you can prob get a 2 br for 200k - 220k and around 7% rental yield. i know its a bit rough but due to its proximity to the city and train line, in pretty good demand. We have a 2br there.

TLP

 

[BV]

The only thing is, BV, I'm only looking at units and villas at the moment. Don't get me wrong I LOVE the idea of adding a house to my portfolio, it's just with my job being so demanding, I treasure my weekends too much to be concerned with fixing/maintaining land-properties like houses on blocks. This is why I prefer units - strata takes care of everything in the background!

I'm also heeding folks' comments about anything returning 7% or more, being a good ticket.

Ok its a preference thing but don't discount this particular property because other than the fence it doesn't need anything fixed. Garden maintenance is the tenant's responsibility and any repairs the property manager will take care of them just like he'll do with a unit.
The only extra is building insurance maybe $600/year but you won't have to pay strata fees so you'll be saving $1500/year, With the savings you'll pay the insurance and you'll have money leftover to pay for the fence and any minor repairs

 

[chilliblue]

If Parramatta is No 2, and Chatswood is No 3, and Green Square will be No 4 (I'm guessing now), where will No 5 be? That's where I want to invest next.

Sorry if this is a bit off-topic, but I'd like to catch all the growth (street names also would be appreciated, please BV. )

Bob Carr pushed the idea of having population bases that worked and lived in the area without reliance of Sydney CBD.

The nominated areas were

-Parramatta
-Chatswood
-Campbelltown
-Penrith
-Liverpool

 

[skater]

If I were to buy tomorrow, my glass ball says Mt Druitt and surrounding suburbs.
But someone told me you need to have B@@ls made of steel to buy there

I heard the same about if you have to live there!

Guys, I'm a little (well, more than a little really) offended by these comments. Mt Druitt/St Mary's does have it's rough elements, it's true, but so do many other suburbs. I've lived out here for nine years now with no incidents whatsoever, and no, I don't have balls of steel. In fact being female, I don't have any at all.

I also hold several IP houses in the area and have had some great tenants. Of course I'd be lying to say that the tenants have ALL been good, but so long as you have a good PM and good Landlord Insurance, you really don't have that many problems.

If a little queasy about the area, then try the 'better' suburbs like Minchinbury, St Clair, Clairmont Meadows etc. The yeilds aren't as high as the ex-housing commission areas but the homes are nicer and so is the quality of the tenants.

 

[Belbo]

Guys, I'm a little (well, more than a little really) offended by these comments. Mt Druitt/St Mary's does have it's rough elements, it's true, but so do many other suburbs. I've lived out here for nine years now with no incidents whatsoever, and no, I don't have balls of steel. In fact being female, I don't have any at all.

I also hold several IP houses in the area and have had some great tenants. Of course I'd be lying to say that the tenants have ALL been good, but so long as you have a good PM and good Landlord Insurance, you really don't have that many problems.

If a little queasy about the area, then try the 'better' suburbs like Minchinbury, St Clair, Clairmont Meadows etc. The yeilds aren't as high as the ex-housing commission areas but the homes are nicer and so is the quality of the tenants.

My bad, sorry! No offence intended. Just fooling around. Wasn't meaning to upset anybody out there.

Mt Druitt/St Marys is probably a great place to invest and to live. I wouldn't know, to be honest, as I've never tried either. (Perhaps need to some day if it's as good as you say.)

Operative Me, it sounds like you're in good company in being positive for a go on St Marys, and I like your style in hitting the ground to test the mood of the main strip in person.

Anybody - How have apartments vs houses actually performed in yeild vs CG terms in the area?