Lakemba - Good or Bad

[rawna]

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?

Hi MsAli,

When I calculate the price, I put price assumption $225k. The rent I put $290-300 again is based on my assumption.

But looks like $225k is too low..

 

[kristaje]

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?

Nope, don't think you could get any at that price now. This one was purchased early 2010 (settled Jan/Feb, I think). Did the paint and carpet then rented out at $280pw, which was a pretty good price as it's only a small unit (around 51sqm). It gave a pretty good depreciation as kitchen is as new and bathroom is in pretty good nick. Also we did a schedule prior to reno, then another afterwards, so was able to expense the replaced carpet.

I recently sold this unit $228k. Assuming lvr 80% and interest rate around 6%, it's still positive after repayment and all costs, before tax (ie. not counting depreciation).

 

[argentina]

I have a 2 bdrm Unit in Lakemba. Owned since 2009. Very happy with the property, the tenants are brilliant. The area has a high proportion of migrants but this keeps demand for properties high and they are affordable for people newly settled in Australia. Personally, I think, given the proximity to the city, i think the area is undervalued and there is lots of potential for growth. We have a good agent. We have other properties in Adelaide and Broken Hill. Lakemba has been the easiest to manage and to date has proved the best return on investment in terms of both capital growth and rent returns.

 

[JT7]

I have a 2 bdrm Unit in Lakemba. Owned since 2009. Very happy with the property, the tenants are brilliant. The area has a high proportion of migrants but this keeps demand for properties high and they are affordable for people newly settled in Australia. Personally, I think, given the proximity to the city, i think the area is undervalued and there is lots of potential for growth. We have a good agent. We have other properties in Adelaide and Broken Hill. Lakemba has been the easiest to manage and to date has proved the best return on investment in terms of both capital growth and rent returns.

Hi Argentina,

Sounds like you've had a very good experience in Lakemba. Would you mind sharing the location of your IP, agency you have it with and the numbers........

Jack

 

[Jimmy.]

Hello all,

Thinking of picking up a unit in Lakemba as i have seen a few good deals in the area. Both CC and yield seem to be appetising. Has any one been investing in the area for a few years and can vouch for the place?

Cheers,

Jimmy

 

[Shahin_Afarin]

I can vouch for the place. Good zoning for development, high population, train station, westfields close by and low rental vacancies.

If I had the dough I would get land though.

Regards

Shahin