Mount Druitt, NSW

Hi

I'm a Perth base investor looking for 3rd IP
I have been trying to find properties that are or are close to cash flow positive.
I have come across Mount Druitt, the numbers look good, 2x1 for low 200s but seem to attract rents around 260 - 280 per week

Does anyone know much about this area?


Thanks
Adam
 
Sniff hard enough and you will find $160k purchases rent $280pw.

Just secured 6 in Mt Druitt over last 2 months for this range..

For $200k you would want a sub 15yr old unit.

Hope this helps.

They are there.
 
Nathan, don't tell 'em that! Naughty boy! I want 'em all! :D

There certainly are some good deals, but you've got to look hard to find them.
 
You might want to pay real close attention to the crime stats to get a full view. Maybe the guys would suggest pockets in the area for you. Old Mount Druitt is the best in this regard. You want to get your landlord insurance here though and ask the guys for good PMs they know. It is cheap for a reason here, Im not saying they are not good deals, Im just saying why they are good.
 
Thanks Guys

I suspected it was cheap for a reason.
I have done very little research on NSW, mainly been looking in VIC and QLD.
Are there any areas around Mount Druit where you can buy a unit or town house for around 300k that might be less troublesome?
 
Thanks Guys

I suspected it was cheap for a reason.
I have done very little research on NSW, mainly been looking in VIC and QLD.
Are there any areas around Mount Druit where you can buy a unit or town house for around 300k that might be less troublesome?

Sheesh! Mt Druitt isn't any more troublesome than other areas. You do get bad tenants, but I've also had great tenants, same as I have had a mix of good and bad tenants in other, so called, better areas. The real reason it is cheap is because many have preconceived ideas about the area AND it is on the outskirts of Sydney. The best part is, that there is good transport and good yields.

The most trouble I have had from any area is one Regional where I hold several. Just biding my time until Hubby retires so we cal give them a reno and sell them off.
 
No not preconceived ideas, reality. As I said there are good deals and there are good tenants too, but someone investing from Perth has no idea on the area. Reputation is why it is cheaper, whether deserved or not. Good management is the key, and I can say there are areas and roads that I would NEVER buy on. No matter what the yield. Lots of areas on the fringe of Mt Druitt are value too. Even to Penrith, Kingswood, Cranebrook, St Marys and around those areas, on the same trainline.
 
From my experience Mt Druiit and surrounding suburbs (Blackett, Whalan, Tregear etc) is a low socio economic, low income area with a fair amount of housing commission housing and social problems, high unemployment etc.

All this, of course, is compared to Sydney as a whole. Ive never held property out there, but I've been told not a bad area to invest in. make sure you have a good PM, hopefully with a Uzi! (joking)
 
Speaking as someone who LIVES and invests heavily in the area, I can tell you that yes, there are a lot of people on low incomes, however there are also a lot on high incomes too. Someone on a low income does not make them a bad tenant.

One of my best tenants is a woman on welfare and her adult daughter. I think they have been living in one of my properties for around eight years now. Rent is always paid and the place is spotless.

Then there is the family that rent two of my properties. The mother and grandfather live in the house at the front, while the son and his young family live in the house at the back. Next door the daughter rents an old housing commission place from someone else. The daughter's family are on a large income, but prefer to live in this area (saving for their own home) because it's cheaper. The rest of the family have moved to be close at hand.

I would never suggest to anyone to buy a place sight unseen, but I wouldn't advise someone to do that regardless of whether it is in Western Sydney or anywhere else. If someone is interested in purchasing in the area, and are not prepared to come and check it out themselves, I would suggest they use the services of a buyers agent. There are plenty of reputable ones about.

There are a small component that have social problems. However you find this in many other areas too. Like I said previously, I have invested in more than one area. I have had good and bad tenants in more than one area.
Mt Druitt has been a lot less problematic than my quiet regional area that I hold properties in, and they are not even in the "bad" area of town.

As an aside, my kids, having both grown up in the Mt Druitt area came with us to Granville (MIL lives near there) one day. We were walking up the street and one of them (I can't remember which one it was) said that she didn't like the area at all and was scared and could we please hurry back to the car. Neither one of them has ever said that about Mt Druitt.
 
i'd be happily buying more houses in the Druitt region if i had the money.
Currently just have the one house in Colyton, about 3 suburbs away - and despite also being a similarly low socio-economic area, my tennants are FANTASTIC.

When i bought the place in dec'08, they were behind on rent by 1 week, cos the wife was about to have their 2nd kid, and they were a little distracted.
After a few weeks, they caught up, and since then have NEVER been behind on rent.

House it kept spotless, the grass is always mowed, and the garden neat and tidy.
They can stay there as long as they keep paying the rent (which i just knocked up by $20/wk).
 
Skater, comments given here were not meant to offend you or anyone else, only provide an answer to the question. Living somewhere and having good tenants there or anywhere else does not change the reality. If Mt Druitt did not have the reputation (and crime rate) it does you would not find the deals you do. As was said there are good deals - and people - it was only to say buyer beware and prepare.

P>S My nephews grew up in Mount Druitt too but it doesnt change the publics perception of the area.

And having a fancy lawyer doesnt stop you getting into trouble, it helps to get you out of it. Mount Druitt has a very large legal aid panel for that.

Im pleased that you have good tenants. It makes life a lot easier.
 
I was told that I was stupid for buying in the area 2 or 3 years ago, if I listened to other people off a free forum, I wouldnt have made a nice $1 MILLION in equity over the last 12 months.

Dont worry about weather the area is good or bad, immigration or no immigration.

Buy with the following criterias and you will be fine

1) Buy under market value
2) Make sure the numbers work and dont erode your lifestyle (your going backwards if you do)
3) Dont get anylsis paralasis and look too much at stats and projections.
4) TAKE ACTION....

Point of the matter is money can be made, has been made, and will be made in the area, and in many areas.

As for weather its good or bad, I got properties in better areas and in worse. Tenants in my better properties cause me more greif (go figure) get a good pm, and tenant insurance as you should with any property and your risk is next to none, from the tenant angle.

My tenants in 2770 are good cause no trouble, and accept their rent increases nicely. Prices rise, the area is changing and will be a new totally different area in 10 years time.

Hope this helps further with the initial question asked.

p.s. this post isnt directed at anyone just my POV.
 
Point of the matter is money can be made, has been made, and will be made in the area, and in many areas.

My tenants in 2770 are good cause no trouble, and accept their rent increases nicely. Prices rise, the area is changing and will be a new totally different area in 10 years time.
Exactly, but like me, you know the area.:D
 
Good PM

Skater and Nathan,

Could you recommend good PM's for the Mount Druitt area? I just settled on an OTP apartment at The Avenue (I know, I know...should have known better but it was my first IP which I signed up for 2 years ago and before I knew about this forum!).

PS. Getting $315 per week (purchase price $275K). I know I've overpaid (in hindsight), but will keep it for a few years to see how it goes!

Cheers
Charles
 
Someone on a low income does not make them a bad tenant.

This is very true - in fact in some cases it safer to get those on welfare as rent can be paid directly to you out of their Centrelink BEFORE the tenant can get their hands on it.


If Mt Druitt did not have the reputation (and crime rate) it does you would not find the deals you do. As was said there are good deals - and people - it was only to say buyer beware and prepare.

As another who has grown up in the area, personally i didn't have a problem.

To the OP, yes there is a high crime rate - if anything it is petty crimes like shoplifting and i don't think i EVER witnessed or heard too much in the way of bad crimes.

My tenants in 2770 are good cause no trouble, and accept their rent increases nicely. Prices rise, the area is changing and will be a new totally different area in 10 years time.

Another thing about some low socioeconomic areas (like Mount Druitt) is may tenants stay for longer periods, it's too much effort to move or find another property and they get comfortable and just don't want to budge.
 
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