First IP in Redfern

[lancia]

Hi Guys,

I've done alot of searching for properties that may present the best opportunities for medium to long-term growth. I've found a property on Regent Street Redfern that will provide a rental return of about 6%. Its a one bedder, but quite large at over 60sq. It has secure parking as well...

I've read alot of the posts that were written a while ago, but I was wondering what peoples thoughts are on Regent Street, in particular near the train station.

I really appreciate your help. Amy advice is welcomed...

Otherwise if you can suggest other areas that maybe I should look at that would be great too....

Thanks

 

[alexlee]

Your own back yard?

 

[BV]

I agree with Alex.

There is nothing much wrong with Redfern, there are good and not so good streets.
I think our mate Glebe knows the area well.

IMO you could get the same returns in your neighbourhood, you will also have the ability to drive past and to keep an eye on things and you will hold a bit of land as well.

You will get the best yields on relatively new IP's and you will also be able to claim depreciation.
Generally you will get higher yields on Units and Townhouses.

Alternatively if you want to increase returns you could buy something neglected and give it a coat of paint and a new carpet.

Cheers

 

[alexlee]

Maybe I'm just biased, but I think a house will beat a unit. Redfern is also a big question mark. If it gentrifies, you'll see great gains. But there's a reason why it has such a stigma.
Alex

 

[ani]

Regent St is busy, busy - not somewhere I'd consider.

I would also be looking in your own backyard before considering Redfern. There has been nothing happen re genification yet that would make me invest in Redfern (and i've been watching for a few years!)

 

[Ajax]

Hi lancia,

I've owned a terrace in Redfern since 1993. I disagree with Alex's comment "if it gentrifies" and wonder how much time some have spent actually looking at properties in Redfern...quite a few parts of Redfern have already gone through substantial gentrification i.e.

http://www.realestate.com.au/cgi-bi...eader=&c=13206165&s=nsw&snf=ras&tm=1192534893

and this, in the unit block near South Sydney Rugby club in Chalmers Street (this street has changed a lot in recent years)

http://www.realestate.com.au/cgi-bi...eader=&c=43396599&s=nsw&snf=ras&tm=1192535859

The potential for further gentrification is often reflected in the asking prices of properties (asking quite a lot here though)

http://www.realestate.com.au/cgi-bi...eader=&c=13206165&s=nsw&snf=ras&tm=1192534893

Redfern is a very large suburb spread from near Abercrombie Street in the west to South Dowling Street in the east, Cleveland Street to the north and Phillip Street in the south. It used to be that properties closer to Redfern station and the block (Everleigh, Caroline and Hugo Streets) were cheaper/less desirable than properties in the east part of Redfern. However there are some interesting new apartments that have recently been completed or about to be completed the Regent Street area near the train station and Lawson Strret (which might be where you are looking).

My concern with Regent Street is (as ani comments) that is is a very busy street changing into Botany Road a little further south. When I lived in Redfern (about 8 years ago now) Regent Street and the area near the train station was one of the less safe areas to walk at night.

If you are buying as an investment these things would not worry you too much. There is always a high demand for tenants as it is so close to the city and universities.

Ajax

 

[alexlee]

I agree given it's proximity to the city there is a big pool of tenants.

But if I was choosing between a 60sqm unit and a house with more redevelopment potential, I'd have to be VERY VERY sure that location of the unit will grow much faster than the average.
Alex

 

[Ajax]

Agree Alex,

a house offers a lot more scope for improvement and probably better capital gains and houses in Redfern will be outside Lancia's price range for a first IP.

Lancia could also check out what the Redfern-Waterloo authority is up to with its plans. Two links are good for this

http://www.redwatch.org.au/

and

http://www.redfernwaterloo.com.au/


Ajax

 

[equitymate]

Lived in Redfern in my more wilder days back in the 90s. My housemates car got broken into on the first night. Back then it wasnt uncommon to see locals drinking on the streets in broad daylight, fights daily, constaintly asked for change, get my drift.

Drove through recently and you can feel the change, the area is definitely on the up. Still along way to go though. I am more amazed at the change of neighbouring suburbs though eg Surry Hills & Newtown.
I hear Paddington was once upon a time a ruff ghetto.

 

[lawsjs]

My two best resi properties are in Redfern. Regent St is good, and with the new traffic flows it will get better and better. Redfern is without doubt one of the best places in Sydney, great CG and if you dont get in soon you will miss the massive cg coming up. Channel 7 is moving lock stock and barrel into the Technology Park and Qantas holds all their large conventions there as well. There will be huge tenant demand once ch 7 starts happening. For a character buy (good building nice views) and not just another new box, look at the Watertower building right on the station (Marian/Rosehill St). BC fees relatively high, but a really good building, with very interesting (read arty/celebrity types) residents. Will be very appealing to Ch 7 related businesses and their tenants. As far as units go, look for something 'different' rather than a spam can thing if possible. Definitely look at Redfern from the Ch 7 head office (map of the proposed area in the tech park itself) point of view. It isn't just the TV station, but all the graphic artist, sound and vision and advertising stuff that will go with it.

And after 5 years of living there, it is safe. I was less than 100m meters from R/F station and left my ground floor door open while I was away for 5 days. Not unlocked, not ajar but swinging open. Nothing touched. Lucky, possibly but I have no problem with safety there AT ALL. A gre

 

[Ajax]

The price McGraths recently got at auction for this single storey terrace in Morehead Street East Redfern suprised me ($751K)

http://www.mcgrath.com.au/index.cfm?fuseaction=buying.details&listing=53434

Property had easy access from side street (if extending)

The price paid for this terrace in Zamia Street ($650k) on 2 June 07 similary surprised me (also with easy side access for extending/renovating etc)

http://www.realestate.com.au/cgi-bi...header=&c=2371207&s=nsw&snf=rbs&tm=1192769709

Ajax

 

[ok180]

Get in, Redfern is gold.

I've been watching Redfern and the surrounding areas for the past 3 years, more specifically houses but the prices have been going up and up and up. I bought in a little over a year ago and could sell at a profit of between 70k-100k easily.

compared to toongabbie and it's big blocks where the prices have gone down and down and down... I guess you could argue long term things will rise and you would probably be right. On the other hand you can gurantee it short term with the suburbs close to the city.