Inner West Action - Are 1 Bedder's worth it?

[Luckyrooster]

Inner West Sydney - Are 1 bedroom houses worth it?

Lately, I've been looking to make an investment property purchase in Newtown/Enmore/Marrickville/Erskinville.

I've got my heart set on owning a bit of land with an actual 'house' (*terrace/townhouse) on it, as opposed an apartment - and this popped up on my radar:

http://www.realestate.com.au/property-house-nsw-newtown-117009119

It's got charm, it's got heart...and it's only got one bedroom! :

Price guide is 575k (auction), so my guess is it will land around 625 - 635 (ouch!). Any ideas where it might go?

I've been doing the sums...and naturally the yield is ultra low on one like this, so it's totally a CG play and I'm not doubting that in the slightest - because Newtown has some key fundamentals - especially this close to the city.

However, I was wondering what type of rent it might fetch? It's only 72sqm, so very tiny...A quick search of similar properties online shows up a myriad of infinite rental possibilities in the Newtown area from $450 for a 1 bedder to as a high as $520 - so would that be the best I could achieve on a property like this? Are people put off by 1 bedder terraces? Are they harder to rent out vs. 2 bedders? This one is due for auction soon and could need a little bit of work - any guesses what this might go for?

120 Burren Street Newtown NSW

This is the type of knowledge some of you may be able to help me with.

Furthermore, it last sold for $427k in 2009! Hmmm....

It's either this for a foot into the market in this part of Sydney or a nice 2 bedroom apartment in the same area with views, more bathrooms and a carspot for same price?

Incidentally, this one needs some love and care, but could be worth it - wonder what it will go for at auction:

15/39 Laura Street Newtown NSW 2042

So many questions; so many decisions.

As usual, I thank the brains trust of this board for any advice they may provide. Thankyou.

 

[neK]

The advice you get this time isn't going to be much different than what you got a year ago.

Seriously, go engage a buyers agent and/or do your own research. The fact that you've been over analysing things and hoped for free answers has cost you a lot more money.

A place in the area that was selling for $500k last year is probably $575 - $600k now.

You are asking the right questions, problem is that you're looking in the wrong spot for them. The person who has the answers is yourself + research. This way when you see something you can apply the multiple scenarios in your head quickly as opposed to having to come back, ask a question and when the right pieces finally fall into place, what you wanted is already gone.

If you want to win at an auction, you need to attend auctions. Doesn't matter what people say here, you cannot rely on words and hope to attend an auction on your first and win it.

If you want to make an offer before auction, you need to know the market. Only you know what its worth. What if someone told you a figure of what they thought it was worth only for you to miss out? Everyone has their opinion, the only one that matters here is your own.

 

[danwatto]

You should be able to get more rent than that.

I have a 1 bedroom apartment, with no parking, in Erskineville (which is slightly less popular than newtown), and it's renting for $500pw. And it's only 53sqm.

With 72sqm, as a house, and in newtown you should be going for more rent than that.

But for the purchase may be hard - you will probably have large competition for such a unique 1 bedroom house opportunity.

 

[neK]

Might also add that without a car space it will be difficult.
Newtown are NOT giving away any more parking permits
(I caught up with a friend over the weekend who happens to rent around the corner and he said he can't have a car because Newtown have stopped handing out permits, those who have them get to keep them, if they hand it back, its gone - not sure if this is any different for owner occupiers though)