Mount Druitt-is this a good buy?

[see_change]

Being an off the plan contract it's pretty much anything goes ie the vendor can increase the price without giving too much reason. We can walk away if we wish at the new price or proceed.

My understanding , You have a signed contract , with a fixed price and the vendors cant change that . Please solicitors correct me if I'm wrong .

From my thinking , the only reason to buy OTP is if you think that prices are going to be higher at completion compared to the purchase price or you are buying in a unique position , eg bangaroo

Some contracts will have a clause that if the the project isn't completed by a certain time then it can be cancelled . I am aware of one situation where there was a big jump in price , the developer deliberately stalled the project , then cancelled the contracts and tried to resell , but was successful sued by the original buyers ...

I know of one OTP at the moment where the developer is attempting to get approval to take the block higher . His attempt to go really high was unsuccessful , though his current application for a less ambitious height will probably succeed . He has sent a letter to all the current buyers , apologizing for the delay and stating the project is going ahead but is anyone if unhappy with the delay he is happy to refund their deposits . Current buyers are probably sitting on a 20 % profit since purchase , I'm assuming no one took up the offer.... No suggestion that he is increasing the price .

Cliff

 

[gcb160]

We bought at a time when there was a stamp duty exemption on new properties, then the developer increased the price mid contract.

Are you a first home buyer? If so you get an exemption on stamp duty and a 15k grant as long as you live in it for at least 6 months.

 

[gcb160]

Don't know who your property manager/source is and what knowhow of the area is. Have a 3br villa, and aiming to get $350. And sis has 2br modern TOWNHOUSE getting $350. The rental market has been slow.

I just did a search on realestate.com. My sister just bought a 2 bedroom there and she did a lot of research and found that there was little difference in term of rent between units and houses but a big difference between the cost of the property so units tend to have a better yield.

 

[doozer]

My understanding , You have a signed contract , with a fixed price and the vendors cant change that . Please solicitors correct me if I'm wrong .

Cliff

I'm no legal eagle but it appears the contract is similar to most OTP contracts in that the vendor can increase the price but if they do the buyer can rescind if they wish and receive their deposit back. We used a deposit bond.

 

[MsAli]

I just did a search on realestate.com. My sister just bought a 2 bedroom there and she did a lot of research and found that there was little difference in term of rent between units and houses but a big difference between the cost of the property so units tend to have a better yield.

Yes, still doesn't sound like an accurate rental appraisal and very optimistic.

 

[MsAli]

I'm no legal eagle but it appears the contract is similar to most OTP contracts in that the vendor can increase the price but if they do the buyer can rescind if they wish and receive their deposit back. We used a deposit bond.

329k doesn't sound too bad. As I see OTP now listed for 400k+. I'm not a fan of OTP. However, you are only paying 35k more than established units and may do well in the future with this. Time will tell. 2004 - you could get units for 240k (at peak), the same units sold for 190k-205k (built late 90's) in 2011/2012. So there is always a risk.

 

[datto]

Dozer. Personally I don't think you can go wrong buying real estate per se.

Sure, the Druitt has had its fair share of problems but things are changing for the better IMO. Not long ago, if you mentioned the words "Mt Druitt" to, say, a co worker, they would either sneer at you or throw up or both.

Not anymore, because that person now probally owns an IP in the Druitt and has made a tidy profit.

The Druitt is about the cheapest area in Sydney to buy - that in itself makes it an attractive area to buy into.

Disclosure: I own property in the Druitt - yeeha!

 

[see_change]

Has Mount Druitt peaked? Where else could I buy at that price and do better?

I dont think it has peaked but is had already moved significantly and each time it has peaked it has dropped back significantly . 240 down to 160 - 180 last cycle , 100 to 60 the one before . So if you get mt Druitt right you could have gone from 60 to 240 . Some forumites are already looking 160 or better to 300 in the current cycle .

Most people seem to be looking outside Sydney at the moment . Spend a bit of time reading posts on the forum . Sydney moves first then others follow .

Cliff

 

[WattleIdo]

Have you seen what they call 'units' outside Sydney? They're like full-on houses! And townhouses are like terraces!
There's a lot around. You could try Brisbane - most think it still has a very long way to go though sounds like there's competition there.
There's also Adelaide and maybe even Tasmania .... or the Gold Coast?

If you were to live in Mt Druitt for a few years and enjoy the new apartment and the convenience, I think it would be worth it for a few reasons:
1/ satisfaction of living in your own property
2/ do yourself a favour and start paying it down before you get all fancy with IO loans and LOC etc
3/ you will keep the place in excellent condition while you're there
4/ you'll get a feel for the place, the other owner occupiers, the available tenants and won't let the PM pull the wool over your eyes when they take over
5/ keeps you humble
6/ most importantly, you'll be directly contributing to the upwardly mobile feel of the place. People will see you and think, 'hey! if he can live here, so can I'.

 

[Mick C]

What do you mean stamp duty exemption but not FHOG? That's a good yield for Sydney.

I think his/she is talking abt the NSW $5,000 IP grant/concession??

$330p/w in Mt druit is quite high....One of my client bought 2 last year in Mt Druitt for $245k and $280k both on Hyth st and both are rented out for $310 and $315 retro. and these are new leases as well only like 3 month old...+ it took them almost 4 weeks to find a tenant as well...So def slow rental market due to supply. So trying to get $370 p/w in Mt Druitt? good luck keeping the tenant for more than 12 month...

 

[skater]

I'm presuming this OTP is located South of the Railway, rather than North? If so, then IMHO, that is the better part. As a new development, you won't have neighbour issues (the welfare scumbags) that you would be subject to if you bought a free standing house in the surrounding suburbs without the right due diligence.

Seech paints a poor picture of the area, but as a GP he would have had to deal with all types in the area. In fact, his surgery was the closest to me when I lived in 'Letho", but I never once went there, as I didn't like the 'feel' of the little row of shops he was located in.

There are good and bad people in the area. Just like anywhere else! There is a small 'element' that are the real scumbags. If you are planning on living in the area, whether in a house, or a unit, I would just plan on keeping to yourself, and, of course, making sure you don't buy near a problematic family.

As far as the market is concerned, I've made some good gains. I'm not actively buying in the area, but I think there's still some steam in it, especially as FHBuyers are getting squeezed out of other areas.

As for whether I think an OTP is a good investment, well, generally not, but then again, I don't like units, unless I own the whole block, that is.

 

[RetireRich101]

Are the R&W still auctioning the HC properties in 2770?

I don't think this is happening, in addition to rental soften in the area makes it difficult to push out the trouble makers on welfare.

2770 needs to see less investor activities, but more first home buyer.

 

[Pete Ramoza]

Western Sydney is a growing area, but there will still be issues with social welfare for quite a while to come...

 

[see_change]

Seech paints a poor picture of the area, but as a GP he would have had to deal with all types in the area. In fact, his surgery was the closest to me when I lived in 'Letho", but I never once went there, as I didn't like the 'feel' of the little row of shops he was located in.

.

True .

I'd say the same about Logan , and I've bought there , but people need to be aware of the downsides as well as the upsides .

Interesting , all of the people who ran businesses in that little row of shops ( with a couple of incompetent exceptions ) did very well out there as well .

Btw , I did say most people out there are nice

Maybe I should just make a list of links to similar discussions in the past so we don't have to repeat ourselves

Cliff

 

[see_change]

There are good and bad people in the area. Just like anywhere else! There is a small 'element' that are the real scumbags. If you are planning on living in the area, whether in a house, or a unit, I would just plan on keeping to yourself, and, of course, making sure you don't buy near a problematic family.

So you want to live in an area where you have to keep to yourselves ?

How do you tell if you have a problematic family ? It's not going to be on the sales blurb ...

Sorry skater . With those two comments I rest my case ...

Cliff

 

[skater]

So you want to live in an area where you have to keep to yourselves ?

How do you tell if you have a problematic family ? It's not going to be on the sales blurb ...

Sorry skater . With those two comments I rest my case ...

Cliff

Hehe, sorry.

The 'keeping to yourself' part is just me. I'm not the kind of person who lives in their neighbours pockets. I don't think I've ever formed a real friendship with a neighbour. I'm nice, and polite, but that's as far as it goes.

For want of a better word, I think what I'm trying to say is that there is a lot of 'trailor trash' types in the area. They maybe nice enough to talk to, but they don't have the same values that I have, and usually have a heap of 'drama' in their lives.

Anyway, I suppose I DID originally want to move there. It was pure & simply a financial decision, as we could have bought elsewhere, but decided that this would give the best in 'lifestyle' as we were spending a fortune on the family skating.

Although we've moved out of the area, and love the new location, I wouldn't hesitate to move back there if we had to.

 

[see_change]

Trailer trash ...... That's an American term ....

Bogans .......? I mean the bogan hunters enjoyed them selves out there ....

Skater ... How many times have we had this discussion ?

Cliff

 

[neK]

You don't think it will improve given that it is one of the few places in Sydney that a young single professional can afford to buy a unit?

There is afford and then there is want.

In most cases a young single professional would want to live somewhere where the cab ride is 5-10mins so they can get home quickly after getting hammered on a friday/saturday night.

 

[doozer]

I think his/she is talking abt the NSW $5,000 IP grant/concession??

$330p/w in Mt druit is quite high....One of my client bought 2 last year in Mt Druitt for $245k and $280k both on Hyth st and both are rented out for $310 and $315 retro. and these are new leases as well only like 3 month old...+ it took them almost 4 weeks to find a tenant as well...So def slow rental market due to supply. So trying to get $370 p/w in Mt Druitt? good luck keeping the tenant for more than 12 month...

I have another property in Mount Druitt on the Old Village side and it gets $360 per week and I've never had a problem finding a tenant.

 

[gcb160]

There is afford and then there is want.

In most cases a young single professional would want to live somewhere where the cab ride is 5-10mins so they can get home quickly after getting hammered on a friday/saturday night.

Not necessarily. I never had the desire to live close to the city. Too busy for me. They may want that but if they actually want to buy a property rather than rent one, then they have to look pretty far west. Unless they are very, very high income earners. My husband and I earned a combined income of $120k last year and we are building a house in Ropes Crossing which is pretty close to Mt Druitt. My sister earns around $55k and she just bought a unit in Mt Druitt.