As I look at a few development sites around Sydney I do come across the one or two houses that have the potential for subdivision or putting a granny flat down. I trawl through almost every add on realestate.com.au and feel that after looking at what the property is selling for and what they can rent for there is definitely a bubble in some of these suburbs.
The subject property is 42 Swete Street, Lidcombe.
I like the property due to its location in reltation to the train station and the flat square sized block.
I originally looked at this property in April 2013. It was in terrible condition, it was pretty much a knock down. The downpipes didn't go anywhere and water ran under the house and into the yard, the garage was asbestos and needed replacing, the toilet was outside, mould stains from leaks, the back of the house look liked it had been retro fitted and structurally it probably needed to be re-stumped. See the below link to original photo's.
http://www.homehound.com.au/42+swete+street+lidcombe+nsw+2141/
The property went to auction and went for $650,000. A ridiculous price considering it was not liveable.
Anyways, it is now available for rent. See the transformation in the below link.
http://www.waterscarpenter.com.au/r...ouse-42-swete-street-lidcombe-nsw-21421120681
The owners have done a fair bit of work to it and it doesn't seem quiet finished however they have not had any rent for 5-6 months so they are probably rushing to get a tenant in ASAP.
Looking at what the property was and what it is now the owners would have had to spend at least $50,000 - $100,000 to fix the cosmetic issues let alone the structural ones.
Summary
Purchased $650,000
Renovation $100,000 at least
Rent asking $650 - $670.
Remember there are structural issues that will mean ongoing issues as well as original stamp duty and management fee's since they are using an agent.
Looking at the rent achievable and the cost of purchasing a liveable house I feel Lidcombe is way over priced for what you get. Many of the houses are not in walking distance to the station and the condition of them is very poor.
Lidcombe will be one of the first suburbs to fall when interest rates rise because at these prices and the returns from rent there is no way little landlords can afford the mounting costs.
Note: how bad is the agents ad and use of photos
The subject property is 42 Swete Street, Lidcombe.
I like the property due to its location in reltation to the train station and the flat square sized block.
I originally looked at this property in April 2013. It was in terrible condition, it was pretty much a knock down. The downpipes didn't go anywhere and water ran under the house and into the yard, the garage was asbestos and needed replacing, the toilet was outside, mould stains from leaks, the back of the house look liked it had been retro fitted and structurally it probably needed to be re-stumped. See the below link to original photo's.
http://www.homehound.com.au/42+swete+street+lidcombe+nsw+2141/
The property went to auction and went for $650,000. A ridiculous price considering it was not liveable.
Anyways, it is now available for rent. See the transformation in the below link.
http://www.waterscarpenter.com.au/r...ouse-42-swete-street-lidcombe-nsw-21421120681
The owners have done a fair bit of work to it and it doesn't seem quiet finished however they have not had any rent for 5-6 months so they are probably rushing to get a tenant in ASAP.
Looking at what the property was and what it is now the owners would have had to spend at least $50,000 - $100,000 to fix the cosmetic issues let alone the structural ones.
Summary
Purchased $650,000
Renovation $100,000 at least
Rent asking $650 - $670.
Remember there are structural issues that will mean ongoing issues as well as original stamp duty and management fee's since they are using an agent.
Looking at the rent achievable and the cost of purchasing a liveable house I feel Lidcombe is way over priced for what you get. Many of the houses are not in walking distance to the station and the condition of them is very poor.
Lidcombe will be one of the first suburbs to fall when interest rates rise because at these prices and the returns from rent there is no way little landlords can afford the mounting costs.
Note: how bad is the agents ad and use of photos