Investing for Cashflow in Sydney Parramatta area

Discussion in 'Where to Buy' started by JohnHenry, 23rd Jun, 2015.

  1. JohnHenry

    JohnHenry Mister

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    People,

    I'd like to know what's your thoughts and comments regarding investing existing unit / town house in the following area:

    Holroyd, Harris Park, Parramatta, North Parramatta, Westmead, Wentworthville

    My goal is to have one or two IPs in one of those area above since they are in the vicinity of Parramatta the largest Satellite CBD in NSW.

    I've researched and scouting around with the following terms in mind:

    P: Population growth as more and more people likes to live in the area
    I: Infrastructure: The gentrification in Parramatta area has spawned numerous cafes and restaurant.
    E: Economy: Lots of companies and Govt. Office now moving to the Parramatta area, plus 3 large hospitals are nearby in Westmead, Western Sydney Uni and Westfield is there.

    Any thought and comments would be greatly appreciated in my last thread in SS forum.
     
  2. ZachAnSel

    ZachAnSel Member

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    Hi JohnHenry,

    Parramatta has become 2nd CBD in sydney, and I think too late if you jump the ship now.

    I've one 2BR unit in Holryod (Guildford to be precise), we bought $320k in 2012. LVR 80%.
    CMV $440k (bank valuation last week). Rent for $425/week. Nice chunk of depreciation. Cashflow positive currently.

    Also have 3BR house in Guildford, bought $400k in 2010. LVR 80%. CMV $740k, rent $520/week. Cashflow positive

    Infrastructure wise, no question about it.. Its being discussed over and over again, and will be central hub to western Sydney.

    If you ask me today will I buy this within 1-4 years? definitely no.. Property cycle wise, Sydney is not on the right phase. But I will keep it, re-val and invest else where.

    I just regret we dont buy more, but we know we hit our limit last time.

    If you still insist want to buy, check older unit in North Parramatta. I almost buy there, and reno it.
     
  3. JohnHenry

    JohnHenry Mister

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    Ah, do you get some new unit in the HOLROYD complex that used to be a factory ?

    I've seen some 2 bedders apartment in North Parramatta, but the catch is the laundry is a shared laundry not the private one in the apartment.
     
  4. ZachAnSel

    ZachAnSel Member

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    Not on that complex, my unit is in Guildford still in Holroyd city council.

    Don't look the one shared laundry, but the one that built around 1990-95ish..
     
  5. JohnHenry

    JohnHenry Mister

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    Ah yes, so I guess that you bought the already existing property rather than the new OTP ?

    Make sense that way Zach. The older apartment unit, eventhough they don't have a lift/elevator the size is bigger than the newer OTP units.
     
  6. ZachAnSel

    ZachAnSel Member

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    I'm not against OTP, they have their own strategy. Will use if the market suit me. But they usually smaller than current building.

    My 2BR unit is 135sqm.
    I can buy room separator/put IKEA 5x5 book case, and voila I will have study.
     
  7. JohnHenry

    JohnHenry Mister

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    Thanks for the clarification and sharing guys.

    So I guess, Parramatta will be over supplied with OTP apartment in the next 2 years.

    What's the impact on the rental yield or the CG for the next 10-15 years ?