First IP in Liverpool area (NSW)

Hi All

I have recently joined this forum reading through other people's posts trying to learn more about different kinds of property invetments.

I am hoping to buy my first IP later this year. Unfortunately, my budget is rather small - I am hoping to spend no more than $200K which would include my 20% to 30% deposit plus the remainer of the PP being financed.

My DD is in its very early stages, however, Liverpool, Cabramatta, Auburn and Fairfield seem to have potential for someone with my budget. I would be greatful to hear everyone's opinion on these suburbs. In particular:

- would you consider them more suitable for buy-and-hold (rent) type of investments or perhaps buy- quick reno-sell, or both?
- would you look to purchase a house or a unit?
- can you recommend any areas within these suburbs (or any other suburbs within the price range)?

I would appreciate any advice you can provide and would not be too adverse to any criticism if you think something in this intial plan of mine does not add up.

Cheers!
 
Hi there

I was looking for 2 bedroom units in Auburn & 3 bedroom houses in liverpool with max budget of 350K with 10% deposit for around 4 months.

I've put an offer for a house in liverpool within 800m from railway station,
600m from westfield\shopping\cafe\council precinct, 700m to hume highway\cumberland\m5 & fast food chains, 500m to school\tafe, 1.2 km to liverpool hospital down south within liverpool CBD. Yield 5.75% for a clad house is not bad. Lots of big houses on the peaceful street both day/night.

I really liked the liverpool area compared to fairfield/cabramatta & i'm a sort of person who like to hold for investment, may be down 5 years, demolish & construct a duplex as land area is 640 sq m.

My Suggestions

Liverpool- house, Auburn-Unit. cabramatta is close to liverpool, where auburn is close to parramatta & fairfield middle between Liv\parra.

I would say at the moment liverpool cbd is under rated area from speaking to lots of people including RE\Buyers agents, investment experts etc

Good luck with your purchase if not done yet.

Hi All

I have recently joined this forum reading through other people's posts trying to learn more about different kinds of property invetments.

I am hoping to buy my first IP later this year. Unfortunately, my budget is rather small - I am hoping to spend no more than $200K which would include my 20% to 30% deposit plus the remainer of the PP being financed.

My DD is in its very early stages, however, Liverpool, Cabramatta, Auburn and Fairfield seem to have potential for someone with my budget. I would be greatful to hear everyone's opinion on these suburbs. In particular:

- would you consider them more suitable for buy-and-hold (rent) type of investments or perhaps buy- quick reno-sell, or both?
- would you look to purchase a house or a unit?
- can you recommend any areas within these suburbs (or any other suburbs within the price range)?

I would appreciate any advice you can provide and would not be too adverse to any criticism if you think something in this intial plan of mine does not add up.

Cheers!
 
You can pick up a 2 bedder in Warwick Farm near the train station for around $220k or less depending on how good you are at negotiating, some of these are already renovated. Liverpool Westfields would be about a 10min walk, also there is a tafe nearby, hospital and ease of access to public transport. If it were me, I would buy and hold. I dont think there is stella CG for these type of properties. But the area does have a low vacancy rate. Just a side note, there are plenty of new apartment buildings going up around liverpool CBD, most of which seem to be struggling to sell.

Cabramatta is similar to Warwick Farm to a certain degree. 2 bedders are slightly more pricey and tend to be in worse condition.

Hope this helps
 
EvaCD

Considering the state of the property market today I think you should be looking to buy and hold for 10 years or more. If you are young, time is our friend :)

On your budget your options are limited.
As a first property I'd pay a little more than $200K even if it means paying mortgage insurance just to get away from the troublesome properties.

I'd go for properties offering the highest yield so the closer to the city the better it is. Have you considered Lakemba, Wiley Park, Punchbowl?

Reno's aren't what they used to be.
Properties which require a reno aren't necessarily cheap
and considering the buying and selling expenses, interest costs, plus tax on any profits they can be a waste of time

cheers
 
A lot also depends on your personal situation, but given the small budget you may want to look at buying a little out of town and renovating.
It also depends on how much time/income you have available.
 
Hi,

I just noticed this post regarding IP in Liverpool area. I myself just joined, but just want to share some thought.

I bought my 2nd IP in Liverpool early 2009. It's a 2 br unit. It looked like I bought at the right time,two agents some months ago offered me to sell it and was priced well. But I didnt sell it.
I would hold this, I dont know yet though for how long .
While regarding the vacancy, I got tenant not long after settlement and it only vacant sometime in april this year for less than two weeks, I am happy with that.

I am considering buying another one,a unit, in that vicinity again. Maybe liverpool casula warwick farm (just any suburb in postcode 2170).
I haven't decided yet, for now, I need to read more from many good postings here and learn further from property experts.

Evacd, I think APM Property Pro is good source of information during the hunting process, good value for money. Just subcribe to postcode you're interested in.

Good luck.

Cheers.
 
Hi Far

You have bought at the right time.

I'm about to settle my 2nd ip in liverpool soon & lots of applications have come through from prospective tenants. ALso, liverpool & close (within 1- 1.5KM) to liverpool CBD is really under rated IMO. Since, you have already got one in liverpool, i would suggest warwick farm rather than casula since intermodal terminal is coming near casula.

Good luck.
 
How long do everyone think Liverpool will be in current price range? I have maxed out my DSR for the time being :( I wan't to buy my next one in Liverpool area...or Campbelltown. Hoping for something that's CF+

Have to wait around 1-1.5yrs before I can buy again probably before I can buy again. Unless there's a big spike in my equity sometime next year.
 
Dont' count on large equity increases....over the medium terms as rates increase....property prices will stabilise and possibly where there are mortgagee sales will come back.

Don't think you will get a CF+ unless you pick up something where it sold well under market.

Warwick Farm was nominated as one of the handful suburbs in Sydney where it is still possible to get 7%+ returns.;)

How long do everyone think Liverpool will be in current price range? I have maxed out my DSR for the time being :( I wan't to buy my next one in Liverpool area...or Campbelltown. Hoping for something that's CF+

Have to wait around 1-1.5yrs before I can buy again probably before I can buy again. Unless there's a big spike in my equity sometime next year.
 
Thanks Sash,

I will also be happy with CF neutral :) If it's neutral after all Deductions, i'll be happy. I'm concentrating on buy and holds (or maybe buy, reno, hold). Got a neg. geared property in Kogarah, NSW and working on another in Carrum, VIC. Time to balance out my portfolio with some neutral or positive properties I think.
 
Very prudent....not wishing ill on anyone...but last round of IR movement upwards caused some people on SS to sell up.

Now is definitely NOT the time to agressively acquiring properties without a solid CF position.;)

Thanks Sash,

I will also be happy with CF neutral :) If it's neutral after all Deductions, i'll be happy. I'm concentrating on buy and holds (or maybe buy, reno, hold). Got a neg. geared property in Kogarah, NSW and working on another in Carrum, VIC. Time to balance out my portfolio with some neutral or positive properties I think.
 
Top