Lakemba - Good or Bad

C

Craiginqatar

I'm looking to buy my first IP and I read an article that said Lakemba was a good area for yield and it also has quite cheap units there. From my time in Sydney I recall it was not a very nice area (apologies to Lakemba residents) so I have my reservations.

Is Lakemba a good place to buy? Research shows steady growth in rents and valuations with high rent demand. It seems with 20 - 25% deposit the rent will mostly cover the mortgage and additional costs but the apartments look mostly shabby and old with a few good ones around. Is this area good to invest in or are there better areas to buy in Sydney that will give a better return for the same money.

I'm looking to spend up to 450K. In Lakemba that could get me 2 units returning around 300pw each.
 
It may be best that you contact a few buyers agents, find one that you like and can trust and have them do the leg work for you.

They will be able to give you actual data and up to date information.
 
We own an IP in Lakemba and are very happy with how it performs so far. It's a 2br apt, purchased around a year ago at 185K and is renting @ 290pw. Guessing its probably worth around 220-235K now.

Rent is paid on-time and never have maintenance issue. Wish all my IPs are like this one :D
 
Craiginqatar said:
I'm looking to spend up to 450K. In Lakemba that could get me 2 units returning around 300pw each.
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I think it will be hard to beat such yields this close to the CBD. If you buy in a nice block you will be ok.

I don't have any in Lakemba but I do have 1 unit in Wiley Park renting for $330/w
 
Thanks for your help. I have been keeping my eye on this area for a while, but being based overseas it kind of makes it a little more difficult.

I like the yields as it will cover my outgoings in a kind of set and forget kind of investment which is what I need.
 
Craiginqatar said:
Is Lakemba a good place to buy?
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Craig
Look mate, some people won't even drive past Lakemba but it isn't that bad. A few years ago there were some shootings between gangs but its back to normal now. The area has a large number of people who originally came from Lebanon and other middle eastern countries but its a mixed bag really with Europeans and Asians as well.

I don't live in the area but I drive past now and then going north or South or when I visit my PM who is in Lakemba.
Rentals are very tight at the moment and the situation isn't going to change, I had about 15 applicants for my unit which is in the next suburb.

If you look at the map of Sydney, Lakemba is not far from the CBD, it has good transport and is in a good spot if you work in the city or in the Northern or Southern suburbs. I'm guessing it will be 20 mins drive to the airport as well. If you have someone who can do the inspection for you and is happy with the block the unit is in, then go for it.

I hope this helps
 
I dont think its developing. I was in Lakemba yesterday for lunch and its hasn't changed in years and years.

Still wouldnt be a bad place to invest. Not the best, but certainly not the worse.

Im not sure about that growth kristaje, its a tad optimistic i'd say.

http://grabyourfork.blogspot.com/2006/04/jasmin-lakemba.html

Amazing food btw.



Quenby said:
IP in Lakemba is really a good investment . The place is developing there and it is very good to use it for rental purpose . As there are many chances of renting it at a very good price .
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evand said:
Im not sure about that growth kristaje, its a tad optimistic i'd say.
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Well...I am obviously bias on this one :)

Been looking around the area lately and can't see anything in comparable conditions (ie. car space, renovated kitchen, back of block, close to Wiley Park Station, etc.) below 220k mark, so quite comfortable with no. above.

evand said:
http://grabyourfork.blogspot.com/2006/04/jasmin-lakemba.html
Amazing food btw.
Click to expand...

I'm a big fan of this one too!
Another wonderful one is Al Aseel, both Greenacre and Surry Hills shops. The mixed plate, fatush salad, garlic chicken and samkha harra are absolutely to die for.
 
Just came across this old thread again....

Craiginqatar - did you end up buying an IP in Lakemba?

Just an update, we sold our one mentioned above for $228k recently, with a super cheap 1.3% agency fee. Pretty happy with that :D
 
a mate i used to work with lived there i think he is the only aussie to do so at the time,, he use to call it 'lake amber' to make it sound more exclusive haha :D
 
kristaje said:
Just came across this old thread again....

Craiginqatar - did you end up buying an IP in Lakemba?

Just an update, we sold our one mentioned above for $228k recently, with a super cheap 1.3% agency fee. Pretty happy with that :D
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Just curious,,,any particular reason why you are selling now?
 
Mr T said:
Just curious,,,any particular reason why you are selling now?
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Not really. Was approach by our managing agent, saying they could get good price etc, and only need to pay $350 if not sold. So thought we gave it a try. Also, we're living overseas at the moment. When someone made offer, we thought it's good to have a bit of aud buffer for any potential repairs on other IPs, so decided to go ahead and sell it.
 
Hi Guys,

First post here, apologies if I hijack the thread. Today I try to calculate the number, it seems that you can reach in general positive gearing in your first year for Lakemba..

I calculate the ongoing cost in general such as 6.5% IO loan payment, Agent fee (6.5%) water, council, strata (admin + sinking fund), spare money for maintenance compare to Rent (market price with 6 months adjustment around + $10)

Am I right??? I know that this not apply to all properties in Lakemba, but I try to calculate 2 unit there and the number tell me that.

Need your opinion.. thanks
 
Rawna, what sort of purchase price are you looking at? Don't know too much about current prices other than the average listings for old 2 BR units have been around the $240k mark...with a rental return of $290?? How can you get positive gearing with that?

Kristaje, what sort of rents are you getting?
 
kristaje said:
MsAli, it was purchased at $185k, rented at $280pw, $290pw then $300pw.
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Cheers Kristaje...I did look up...Seems you can no longer find the $185pw price...Or can you still? How old was your unit? Did you have to do any renovations? Do you get any depreciation?
 
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