Investing in Merrylands - anyone?

[nav9797]

I am looking at my first investment in merrylands. I have been looking at 2 bed villas, a few years old around the $300K mark (give or take). I have found current tenants paying about $350pw. I am thinking to buy at least 1 and possibly two villas.
On the other hand there is potential duplex sites with older houses for sale around $400K -$430K. These can potentially rent for around $370-$400k.
For me Merrylands is the closest location to Sydney that I can afford. Because I am starting out my view was to start off with villas first and then start looking at larger properties. On the other hand because I am keen to invest regularly I feel I should purchase a larger property and hold. Use this equity to purchase more regularly.
Just looking for any advise out there re. the about the location and assistance with my logic above.

 

[Propertunity]

Just looking for any advise out there re. the about the location and assistance with my logic above.

I must admit to having difficulty following your logic here.

Perhaps state:
1. Price you want to pay
2. Deposit you want to put in
3. Rental return you are looking for
4. Long term goals you hope to achieve buy buying RE

 

[twobobsworth]

Most of the villas/townhouses are a fair hike from the station. Units seem to dominate the closer positions.

Shopping centre was recently refurbished. High crime rate suburb.

When you say you've inspected them, you've been through the door or viewed on RE.com.au? Nothing for sale in Perth?

 

[skater]

Let me get this straight. You are from WA, yet you want to make your first investment on the other side of the Country. Have you ever been to Merrylands? What makes you think that it is a good area to invest in? The country is littered with good investment properties. What was it that drew you to Merrylands?

 

[9-5 slave]

Merrylands would have been an Ok suburb to invest in about 6-12 months ago.....

Prices at that stage were much lower than 3-5 years earlier - now they are up to above previous highs.

There are a lot of duplex construction going on in the suburb (there going up everywhere), Villas complexes are around the Hill Top area - Fowler Road etc - a fair distance from the train station.

I went to an Auction at Merrylands on Saturday - a mortgagee in possession sale - 2 bedder top floor mid position - average size average condition - close to station - was interested at $240,000, property poorly marketed and incorrectly listed on RE.com, - not many at the inspection I went to - so thought maybe a chance - only 6 registered - first bid $235,000 - took ages for the 2nd bid and eventually sold for $267,000 (only 2 bidders) - still a good buy )but no bargain)- would rent for $320 - $330p.w.


Houses in Merrylands start form about $350,000 - better value and opportunity

 

[twobobsworth]

I went to an Auction at Merrylands on Saturday - a mortgagee in possession sale - 2 bedder top floor mid position - average size average condition - close to station - was interested at $240,000, property poorly marketed and incorrectly listed on RE.com, - not many at the inspection I went to - so thought maybe a chance - only 6 registered - first bid $235,000 - took ages for the 2nd bid and eventually sold for $267,000 (only 2 bidders) - still a good buy )but no bargain)- would rent for $320 - $330p.w.

Could you post a link?

 

[chase]

merrylands has had terrible growth the last 7 years, so maybe now may be the time to get in there, i know first hand from someone who bought an off the plan apartment in 2003 at merrylands.

Talking to people who live out west near liverpool and parramatta, they dont have particularly nice things to say about the area. But, to be honest i have driven through merrylands once, and i must say some apartment complexes are new and modern, and look really good, and its close to parramatta city, so i didnt think it was that bad.

so unless you have been there physically, and spent a good deal of time in the area checking it out i wouldnt buy there.

 

[nav9797]

Thanks all. Your feedback is much appreciated... i can see i need to think through some more
In summary:
-i do know the area I am orginally from sydney
-given that most of the NSW market has been flat for a while i believe NSW will rebound soon, hence I am looking at affordable places near satellite cities (ie. parramatta)
-also i have heard granville is an area to watch, so I have selected a suburb next door to this to reap some of the flow on effect -this is why I have been drawn to merrylands
-the areas i am looking at are closer to the station, not in the hilltop areas
-A builder (a member of the family) who inspects for me
-I have found some villas have come down in price over last few months

 

[nav9797]

I must admit to having difficulty following your logic here.

Perhaps state:
1. Price you want to pay
2. Deposit you want to put in
3. Rental return you are looking for
4. Long term goals you hope to achieve buy buying RE

1. $299,000
2. close to 20% as possible to eliminate LMI
3. 5.5% ++
4. long term goals to keep accumlating, saving income, building equity

 

[beachgurl]

Not sure if I agree with your theory of the flow-on effect by buying in Merrylands. I think the reason why Granville is set to increase in value is because the areas around it, including Merrylands, are becoming more unaffordable for first home buyers and people have to now consider Granville. Perhaps with the whole Refractory development it could improve the area a bit. The whole area tanked a few years ago so the increases we are seeing are pretty much a re-adjustment to former values.

 

[Propertunity]

1. $299,000

Yeah OK. You can get villas & units for that. Whilst houses on land usually start in the high $300K's

2. close to 20% as possible to eliminate LMI

OK. But don't just do that for the sake of saving LMI premiums if it means you could buy more if you used lower deposits.

3. 5.5% ++

Getting harder to find now as prices moveup. But not impossible by any means.

4. long term goals to keep accumlating, saving income, building equity

Good

 

[anisavvu]

Terry Ryder's opinion on Merrylands.

Just to give another perspective to this discussion, Terry Ryder of the Hotspotting.com.au has added Merrylands into his report namely "The No go Zones- 13 worst places to invest", he has termed Merrylands as "home repossesion capital of Sydney" and the various reasons for his view are

"Struggling market, high rate of re-possessions, poor growth record, high crime rate, social disadvantage"

anisavvu

I am looking at my first investment in merrylands. I have been looking at 2 bed villas, a few years old around the $300K mark (give or take). I have found current tenants paying about $350pw. I am thinking to buy at least 1 and possibly two villas.
On the other hand there is potential duplex sites with older houses for sale around $400K -$430K. These can potentially rent for around $370-$400k.
For me Merrylands is the closest location to Sydney that I can afford. Because I am starting out my view was to start off with villas first and then start looking at larger properties. On the other hand because I am keen to invest regularly I feel I should purchase a larger property and hold. Use this equity to purchase more regularly.
Just looking for any advise out there re. the about the location and assistance with my logic above.

 

[Hooray]

Just to give another perspective to this discussion, Terry Ryder of the Hotspotting.com.au has added Merrylands into his report namely "The No go Zones- 13 worst places to invest", he has termed Merrylands as "home repossesion capital of Sydney" and the various reasons for his view are

"Struggling market, high rate of re-possessions, poor growth record, high crime rate, social disadvantage"

anisavvu

Back in Apr 2008, Ryder said Bankstown, Blacktown and Mt Druitt as 'no-go zones'.

http://www.news.com.au/money/property/australias-worst-places-to-buy/story-e6frfmd0-1111116189475

Guess how those areas have done in the last 20 months?

 

[BV]

Just to give another perspective to this discussion, Terry Ryder of the Hotspotting.com.au has added Merrylands into his report namely "The No go Zones- 13 worst places to invest", he has termed Merrylands as "home repossesion capital of Sydney" and the various reasons for his view are

"Struggling market, high rate of re-possessions, poor growth record, high crime rate, social disadvantage"

anisavvu

Yes well, some people can't see that economic conditions do change.

For example, a few years ago we had LO DOC and NO DOC loans and particular segments of the community used such loan structures to get into the housing market because they didn't qualify for a normal loan.

The majority of these dodgy loans are gone (people defaulted, sold or refinanced) and new loans have strignent lending criteria so anyone who is getting a loan today is not likely to default on his loan.

Couple the stringent lending criteria with lower interest rates and you have a very reduced chance for a loan default.

IMO Merrylands or anywhere in a capital city where you can get a decent return is not a bad place to buy. Remember that you won't live in the property yourself and vacancy rates are very low so you have the ability to screen and choose the tenants you like.