Liverpool Units - Investment decision

[bobby85]

Hi all again,

I was looking through Liverpool stats from the Australian Property Investor mag
this month.
I noticed vacancy rates are about 1.6% with 188 vacancies. That's a huge number!

I'm working in Liverpool next year and was considering buying a unit instead of renting out. Works out the rent paid pretty much equals interest payments, strata, council rates, water (for a $300,000-$350,000 unit).
Saying that I will be looking at getting a newer security unit.
- Downsides: Higher strata, higher entry cost
- Upsides: Depreciation schedule will be nice to claim on tax, Higher rent

I'll be doing my own due diligence and looking around properties and such but wanted to see what your thoughts were on my plan to live in for a while then rent it out thereafter.

Note: I would still consider investing in Liverpool regardless of the fact that I'll be working there. I'm hoping for a cash flow positive property.

 

[geoffw]

1.6% is a low vacancy rate, which may tend to indicate a good demand.

Buying a unit may give you capital growth which you may not get from renting. However that depends on demand where you are buying. There are areas with large numbers of units which have not shown a lot of growth.

 

[Shahin_Afarin]

The problem with depreciation is that its not forever whereas high strata costs will always be there.

The last thing you want to running around trying to offload a unit with high strata costs that is not really attractive to an investor.

 

[mini2]

Have a drive around Livo, right behind where Westfield is and see how many new developments are being built right now or in the pipeline...might be better off looking at the slightly older (~10 years old IIRC) near where NRMA service centre is. In terms of location that's a fair whack closer to the station as well compared to the new ones.

 

[tang]

a few vacant land and new developments..oversupply in stock compared to other submarkets in sth west sydney..as mentioned, there are older style units you could consider..especially near the swimming pool.
what do u do for work??

 

[datto]

I'm in Lpool , near orthodox church and high school.

Same tenant for nearly 10 years. Capital growth has been slow but is now just picking up a little.