Is is impossible to find a deal in western sydney at the moment??

[my03]

Hey guys, I've been looking at my first IP in the St marys, north st marys and oxley park area.

Are there any other suburbs surrounding you could recomend worth looking at? Seems like those areas a slightly nicer than your normal 2770 suburbs and command a premium price.

Market is so hot right now, every decent place has 10-20 people going through open houses.

Just wondering if you had any tips on negotiating a deal in the current market. I know that deals are harder to come by, but do you recommend speaking to a few local agents, getting your name on their books and hopefully they contact you as soon as something comes on the market?

Or do you think it's time to sit back and watch? My goal is to just get my first ip, long term hold. Hopefully get some GC out of it and use the euity to fund extra properties in the future.

 

[Propertunity]

Only 10-20 people at an Open? ......sounds like the market is a bit quiet. We are quite used to 50+ groups on certain properties

The only way (or at least the best way) is to develop relationships with the REAs so you get to see the property first, during the week. Do that yourself over many visits etc or consider using the services of a buyers agent and leverage off their established relationships.

 

[vaughan]

Only 10-20 people at an Open? ......sounds like the market is a bit quiet...

The house didn't sell BEFORE the first open? Wow, it is getting quiet.

 

[Tonibell]

Hi my03,

What are you trying to get and how much are you looking to spend ?

I guess you either match the market or look elsewhere ?

What is your standard North St Marys 3 x 1 on a 600m block going for now ?

 

[my03]

lol tell me about it!

what advice would you give to a newbie on ways to establish relatiobnships with local agents? I've already attended several open houses and told the agents what I'm after.

Would you guys go as far as giving agents incentives? Say a 1 or 2000 carrot if you can make a deal?

Cheers

 

[my03]

Hi my03,

What are you trying to get and how much are you looking to spend ?

I guess you either match the market or look elsewhere ?

What is your standard North St Marys 3 x 1 on a 600m block going for now ?

Hi Toni, I'm looking to spend sub 500, more like 450. Looking for a 600m2+ block, with 3x1x1 is reasonable condition, weatherboard but pref brick construction.

Seems like you can get older fibro/weatherboard house for the 450 mark, but anything in a semi decent street with a block larger than 600m2 you'll be looking at high 400 to low 5's

 

[see_change]

Hi Toni, I'm looking to spend sub 500, more like 450. Looking for a 600m2+ block, with 3x1x1 is reasonable condition, weatherboard but pref brick construction.

Seems like you can get older fibro/weatherboard house for the 450 mark, but anything in a semi decent street with a block larger than 600m2 you'll be looking at high 400 to low 5's

Are you ? Why ?

Do you expect prices to go up further ?

Cliff

 

[Tonibell]

Well your expectations seem pretty realistic.

Looking at recent sales (see below) they all seem in your range.

Our place on 3x1x1 on 620m adjoining at park which is clad and with a new 2 bedroom granny flat was only valued at $450K recently. Onthehouse only has it at $350 - $400K (without the granny flat). Over $500K and I'd be thinking about selling.

I would have thought there would be no problem getting a good place for $450K if that is what you want (not sure I'd be a buyer though).

RECENT SALES - NORTH ST MARYS

25 Liddle St $389,000 10/09/14

58 Debrincat Av $360,000 05/09/14

54 Maple Rd $395,000 01/09/14

38 Kurrajong Rd $470,000 29/08/14

72 Oleander Rd $415,000 12/08/14

72 Catalina St $430,000 11/08/14

18 Glossop St $470,000 09/08/14

40 Maple Rd $400,000 01/08/14

28 Griffiths St $420,000 22/07/14

11 Athel St $399,000 21/07/14

 

[my03]

Sea change, I'm completley new to this, but just want to get my foot in the door on my first ip. At the pace it's going, I do expect prices to go up a bit more for another 6-12 months, but nowhere near the rate it's gone up over the last 3 years, and would probably slow down and maybe even negative growth when rates go up i suspect next year some time.

Having said that I do have a long term vision in mind and hope to hold these for many years and get some capital growth out of it, and hopefulyl draw equity out and fund further investments.

Feels like the sentiment on here is I've already missed the western sydney boat and most investors are sitting on the sidelines waiting for a correction or thinking about exiting the market with the properties they already own in this area.

There are a few actions coming up on some really run down properties, I would also be interested in getting them for the right price and tidying them up. But obviously at the right price.

What are the forums opinions on the western sydney market? best to sit and wait until the hype settles? Seems like it's still got some legs but how much? and when it does correct how severley?

Tonibell- maybe the one currently on the market are quite over priced. I'm finiding it hard to find anything sub 400 at the moment.

 

[Propertunity]

what advice would you give to a newbie on ways to establish relatiobnships with local agents? I've already attended several open houses and told the agents what I'm after.

Yeah, you and 100,000 others

Would you guys go as far as giving agents incentives? Say a 1 or 2000 carrot if you can make a deal?

That's NOT what I meant by establishing relationships

It would be illegal for the agent to accept money or a gift from you as well as a commission from the vendor on the same property purchase.

 

[Propertunity]

I'm finding it hard to find anything sub 400 at the moment.

We managed to buy a very run-down one for a client in Willmot about 3 months ago for $260K. You just need to know where to look and who to talk to

 

[TMNT]

I couldnt think of anything more risky in todays west sydney market competing with 10-100 people

its absolutely insane in my eyes

 

[SomersetWynyard]

I'm wishing 2770 would become stable market in next year. So that I can buy my first PPOR in that area with tight budget

 

[RetireRich101]

Well your expectations seem pretty realistic.

Our place on 3x1x1 on 620m adjoining at park which is clad and with a new 2 bedroom granny flat was only valued at $450K recently. Onthehouse only has it at $350 - $400K (without the granny flat). Over $500K and I'd be thinking about selling.

I would think the bank valuation versus what you can achieve in open market is 50k difference especially for a property with GF, no?

My property in N St Marys very close to you, bank valued $460k 6 months ago. bit bigger block than yours and a $700/wk rent.

There still some high investor demand chasing yields at the moment. I would try the auction approach, purely because the bank valuation would general come lower than contract price. At least on fall of hammer, and if buyer can't proceed due to shortfall on bank valuation, you have a larger deposit to play with.

working backyards with a hypothetical investor on yields
a 6% yield on $550k requires $630/wk rent
a 6.5 yield on $550k requires $690/wk rent
a 7% yield on $550k requires $740/wk rent

 

[Ace in the Hole]

I couldnt think of anything more risky in todays west sydney market competing with 10-100 people

its absolutely insane in my eyes

Agree.

If it's an IP you're after, I'm guessing 80%+ of resi property in the whole country would be within your budget, why limit youself to what is probably the hottest market currently?

 

[my03]

thanks for the replies guys. I wanted to stay local (Sydney) for my first property. But it seems like I would be limiting myself. Having said that I was looking at western sydney as it seems to be the most affordable place for a house (in metro sydney) at the moment. I am steering away from it and it's just too risky at the moment. But I honestly have no idea which other areas are worth looking into.

retire rich - are you getting these yield with a granny flat? I'd assume so as most of the places I've seen are only achieving 4-5% yield.

Cheers

 

[datto]

I couldnt think of anything more risky in todays west sydney market competing with 10-100 people

its absolutely insane in my eyes

The west is the best, forget the rest.
Don't buy in Leumeah, try Tregear
Its got great shops, Datto's tried all the slops
Forget Petersham, go for Hebersham
The Oxford on Chrystal is no match for The Bottle-0-Bidwill
You'll pay too much in Cheso, but you'll learn a new language in Letho...plus at the underpass you find great metho!
Try using your head, don't go for suburds that are dead.

 

[Scott No Mates]

Dhurruk for my money Datto, much forgotten spot. Even has a Mickey Dees.

Doonies also a lurvlee spot once you get away from the main drag.