Lakemba or Liverpool

[CHam]

Hi there,

Looking for our next IP and thinking that NSW is the best bet this time around.

Liverpool and Lakemba are of interest through various excellent posts on this forum and properties that I have viewed on the net already.

The bank have advised that we have access to about $500k but I am not comfortable spending that amount for this one, so we are looking along the lines of a 2 bed unit or townhouse around the $225 - $300k range.

Ideally want something that is neutrally geared at worst, as we already have a couple in VIC which are negatively geared.

Hoping to get feedback on which areas you guys think are best for capital growth whilst not sacrificing cashflow!

Thanks in advance and really looking forward to your ideas and thoughts.

 

[singingtheblues]

i really don't know about liverpool & what you can buy there - but a couple of years ago i took a look around lakemba - the problem is that there are a lot of big blocks of units that are all the same - hence plenty of supply on the market & a drag on capital growth - i opted for wiley park where there seemed to be a better mix of houses & units .. still within a decent distance of the city etc & on the train .. i bought for $209k & it was rented for $280/wk - now it rents for $300/wk .. & i guess would sell $250k-270k+ .. there are units out there now that will give a similar return - the good thing about the area is that the tenants are all migrants & seem pretty settled - i've had the same tenants for 2+ years with no probs - i think they all just want a quiet life in a community of a similar ethnicity - the problem is that they all work locally & don't pay the 'easy access to the city' premium rental wise like the young upwardly mobile would - so the rents are not top $

 

[Cherry Pro]

Hi Cham

For about that price, you could get into the Mount Druitt area (do your own due diligence, search other threads here etc) and you could easily get about $320 a week in rent.

A 2 bedroom unit costing $175k bought in June 2010 now returns $290 per week.

In this market, where we're not sure whether there will be capital growth over the near term, best to get into something that's not costing you to hold.

Good luck !

 

[CHam]

Thanks Singingtheblues and Cherry Pro,

I will certainly do some research into those areas and see what is about - both of your feedback is very much appreciated.

Cheers.

 

[Thesnowyforest]

lakemba over liverpool any day.

 

[BV]

lakemba over liverpool any day.

please tell us the reason