IP in Western Sydney?

[Gracesydney]

Hello
I am looking for my first IP, at first I was thinking about getting a one bed apartment with car space in CBD, which will cost around $550K. As the weekly rent will be good, though the strata is a concern, also I am not sure how good the capital growth will be in long term. I had a talk with friends earlier, I decided to change my approach, insteasd of having a big mortgage, I could invest in western sydney, i am thinking about st marys, penrith, blacktown. I will be able to get a decent house in that area for around $350K or less, then I can build a granny flat....i would have a much managable mortgage. I probably will hold the IP for a few years, build up equity, and move on to the next IP.

Can anyone please advise if this is a better/manageable approach? If so, would those 3 subs are better valued? i read somewhere better tenants in st marys than penrith??

Thanks!

 

[Brady]

Im sure others will input, I havent done much research on the area.

While you wait for some people to post, check some of these out....

http://somersoft.com/forums/search.php?searchid=5703784

 

[devank]

$350 k won't be enough for a decent house with large enough land in those areas.

 

[mumbai]

Well, $350K can get house and big enough land in St Marys for sure, if not Blacktown.

 

[Rolf Latham]

Hello
I am looking for my first IP, at first I was thinking about getting a one bed apartment with car space in CBD, which will cost around $550K. As the weekly rent will be good, though the strata is a concern, also I am not sure how good the capital growth will be in long term. I had a talk with friends earlier, I decided to change my approach, insteasd of having a big mortgage, I could invest in western sydney, i am thinking about st marys, penrith, blacktown. I will be able to get a decent house in that area for around $350K or less, then I can build a granny flat....i would have a much managable mortgage. I probably will hold the IP for a few years, build up equity, and move on to the next IP.

Can anyone please advise if this is a better/manageable approach? If so, would those 3 subs are better valued? i read somewhere better tenants in st marys than penrith??

Thanks!

Hiya

We have done a bunch of finance for a variety of granny permutations from


315 for a reasonable site with 120 turnkey granny at 90 % Marayong

445 for an approved existing and tired flat at 90 % Blacktown

450 refinance for a new granny and reno house at 80 % in Blacktown

295 for a reasonable site and 90 k for turnkey at 90 % in Penrith

245 k for reasonable site 70 k turnkey for a small granny@ 90 % in Lethbridge Park

So you need to have the capacity for nearer 450 or so to have a real choice of burbs

ta
rolf

 

[Gracesydney]

$350 k won't be enough for a decent house with large enough land in those areas.

Devank, Thanks. I havent personally inspected any properties in those areas yet, but will be there this Saturday to see what the area is like. Hopefully will get a better idea...are there any streets that I need to avoid?

 

[Gracesydney]

Well, $350K can get house and big enough land in St Marys for sure, if not Blacktown.

I dont think it is enough for Blacktown though, it is more pricy than I thought I actually quite like Penrith as investment after reading a few posts here ...

 

[Gracesydney]

Hiya

We have done a bunch of finance for a variety of granny permutations from


315 for a reasonable site with 120 turnkey granny at 90 % Marayong

445 for an approved existing and tired flat at 90 % Blacktown

450 refinance for a new granny and reno house at 80 % in Blacktown

295 for a reasonable site and 90 k for turnkey at 90 % in Penrith

245 k for reasonable site 70 k turnkey for a small granny@ 90 % in Lethbridge Park

So you need to have the capacity for nearer 450 or so to have a real choice of burbs

ta
rolf

Rolf,

thanks for the info, I think for me the first step is to get a property big enough ... =)

 

[Propertunity]

Devank, Thanks. I havent personally inspected any properties in those areas yet, but will be there this Saturday to see what the area is like. Hopefully will get a better idea...are there any streets that I need to avoid?

Yes, everything west of Old Windsor Rd and north of the M4.

http://www.youtube.com/watch?v=2KbX-06M19w

 

[sk71]

If you are looking at Penrith, have a look at South Penrith. Houses are more established and the blocks are bigger than the newer developments in Penrith.

 

[jrc77]

315 for a reasonable site with 120 turnkey granny at 90 % Marayong

445 for an approved existing and tired flat at 90 % Blacktown

450 refinance for a new granny and reno house at 80 % in Blacktown

295 for a reasonable site and 90 k for turnkey at 90 % in Penrith

245 k for reasonable site 70 k turnkey for a small granny@ 90 % in Lethbridge Park

Rolf,

Do you know hat the expected yields were for those (taking into account all purchase costs and granny flat build)?

Jason

 

[Rolf Latham]

Rolf,

Do you know hat the expected yields were for those (taking into account all purchase costs and granny flat build)?

Jason

315 for a reasonable site with 120 turnkey granny at 90 % Marayong = 670 expected

445 for an approved existing and tired flat at 90 % Blacktown =680 a week actual

450 refinance for a new granny and reno house at 80 % in Blacktown= 770 actual

295 for a reasonable site and 90 k for turnkey at 90 % in Penrith = 600 valuer expected ( we expect 640 )

245 k for reasonable site 70 k turnkey for a small granny@ 90 % in Lethbridge Park = 570 expected.


costs dont include stamps LMI etc
ta
rolf

 

[jamesparnwell]

Hi,

I am a mortgage broker and have had some clients have a lot of success in in Jordan Springs, about 5 mins north of Penrith. I wrote about them in my blog here http://investmentproperty-howto.com.au/jordan-springs-case-studies/

The rental return and capital growth have been very good so far!

Hope it helps! Let me know if you want any further info!

James

 

[Jacque]

Well, $350K can get house and big enough land in St Marys for sure, if not Blacktown.

It can but the house won't be much and will require renovation, unless it's on a main road or in a HC cluster st etc.