Mt Druitt- price/rental

[travelbug]

I have been looking at 7hills, Lalor Park but have just moved my search to Mt Druitt area because of cheaper prices.

There seem to be some properties worth considering (not enough DD yet). But when I looked at the rentals there are 20 marked as "NEW" and another 30 in the $200-300 a week mark.

That scares me. Does that mean heaps of investors are buying into Mt Druitt now? I've read a little about the property secrets group. I don't want a property that I can't rent.

I seem to be going in circles.

 

[Nathan]

mounty county is fine...

there is a high turnover in properties... i watch them live daily in 2770...

there are some out of line listings atm (i feel like calling the agents and telling them this) however they rent quickly.


i have seen days where 15 get listed and 15 disappear there is always around 70 on the list at all times
sometimes 60 sometimes 80. fridays there is always more mondays there is always less.

hope this helps.

 

[DanielG]

I have been looking at 7hills, Lalor Park but have just moved my search to Mt Druitt area because of cheaper prices.

There seem to be some properties worth considering (not enough DD yet). But when I looked at the rentals there are 20 marked as "NEW" and another 30 in the $200-300 a week mark.

That scares me. Does that mean heaps of investors are buying into Mt Druitt now? I've read a little about the property secrets group. I don't want a property that I can't rent.

I seem to be going in circles.

I bought my IP in emerton in 2007 for 200 k, it is currently renting at $240 though I know I could push it up to $260. Its positively geared and my tenant is really good, no problems in 2 years. The area is rather low-class, which explains the cheaper prices. I suspect in 5 years or so there will be a gentrification in the area.

 

[see_change]

I suspect in 5 years or so there will be a gentrification in the area.

Why ?

Mt Druitt is in the middle of the western suburbs

It's not near the water like Frankston . It's not in nice rolling hills .

It's in the middle of a vast suburban sprawl . Absolutely no reason why it will gentrify .

Logan in Brisbane has a lot more going for it in terms of locality than Mt Druitt.

Don't mean that at some stage it won't make a place to invest in , just don't expect it to change.

Cliff

 

[DanielG]

Why ?

Mt Druitt is in the middle of the western suburbs

It's not near the water like Frankston . It's not in nice rolling hills .

It's in the middle of a vast suburban sprawl . Absolutely no reason why it will gentrify .

Logan in Brisbane has a lot more going for it in terms of locality than Mt Druitt.

Don't mean that at some stage it won't make a place to invest in , just don't expect it to change.

Cliff

Well its just my observations but I do remember lalor park and seven hills had the same stigma as mt druitt does now. They area has improved as rentals increased, forcing the people of the lower end of the social economic scale to move further west into Mr Druitt. When I first bought my place two years ago, the rent in those areas were around $190-$220. As of June this year, i will be recieving $250 a week, ive seen advertisement from $260-$280 a week. This, in my opinion, will keep those people heading further out for lower rentals. Also, I have noticed a number of houses being renovated by investors, ive also seen in the streets surrounding of my IP some really nice looking houses being built up. Now, factor the FHOG that people are snapping up, they will want to spruce up their houses.

 

[BV]

just don't expect it to change.
Cliff

Cliff

After spending 20 years in the area you seem to have formed a certain opinion about Mt Druitt but IMO we can't generalise like that because any suburb can change.

The kids who used to come to your office and trouble you sooner or later will be adults and mature persons and the next generation will be different.

Housing commision properties are sold, and the troublemakers are often priced out of a suburb and forced to move further out or interstate.

cheers

 

[see_change]

One reason I think it will be hard for the place to change is that since Mt Druitt and some similar places ( green .... ) in the south west were built the housing commission hasn't just built whole suburbs and populated them .

Since then they've sprinkled their houses amongst other houses.

Gentrification to me implies an area moving up socioeconomically compared with places around it .

In fact the dictionary defines it as " the process of renewal and rebuilding accompanying the influx of middle-class or affluent people into deteriorating areas that often displaces poorer residents "

http://www.merriam-webster.com/dictionary/gentrification

I don't see that happening in Mt Druitt

Within it's area of Outer west between parramatta and Penrith , I don't see Mt Druitt becoming the next Leonay .

It did happen in inner city areas like paddington in the 60's and newtown more recently. Those areas moved up socioeconomically because of their central location and some where like Redcliffe will move up because off it's location. This may well happen in Frankston.

Sure new people will move in and renovate as older people move out but that's not gentrification .

Mt Druitt ( IMHO ) is like to remain at the bottom of the pile as far as desirable places to live in western Sydney for a long time.

Doesn't mean it's a bad place to invest in , and the majority of people I've known who live or have lived there are happy living there . But I know many people who couldn't wait to get out of the area , and I've known several people who bought in the area only to find they live next door to the neighbour from hell and sold up fairly quickly .

The units opposite to where I worked got a front page listing on the Tele with teenagers terrorising the OAP's and another patient had the riot squad break up their backyard BBQ . That was in the papers for a week or so and dragged throught the courts for a while. Then there was the lady who heard a murder and saw a rolled up carpet being taken away from her nex door neightbours only to be told to f....off by the Police , only to have them turn up her house when a body was found and start prolonged questioning of her while the neighbours were looking on... she took off .( well hopefull she did .... well , I never heard from her again ).

Maybe I am jaudice after working their for almost 20 years , but I still can't see it changing soon

I'd be suprised if anyone who really knows the area would disagree with what I'm saying.

Cliff

 

[BV]

Maybe I am jaudice after working their for almost 20 years , but I still can't see it changing soon
Cliff

Cliff

Maybe that's it, we make up our mind about certain areas and don't want to change it.

I've looked at Mt Druit many times but didn't buy there because I didn't feel comortable with the properties I found. I've always thought that I'd be chasing up the tenants to pay and could have maintenance issues.

Ofcourse I could have minimised the risk by buying a more expensive house and in the nicer streets or by screening the tenancy applications
but chose not to get involved.

I was not always thinking like this though.
I've changed as I got older and now want even less hassles.....

 

[Cartoon]

Mount druitt is a big area,
are you guys talking about the city of mount druitt or the outta suburbs?

I have a place 2 streets away from the westfields that wen i finish renovating in a week or two im looking about approx 20-30k increase in my equi according to recient sales prices. Plus the complex my villa is in has mostly nice ppl except for one little kid that i wanna talk to his parents!!!!!!!!!!

Yes some ppl are lowerclass there but that dont mean there bad ppl, and yes there are bad ppl there but hay that happens every where. I build housing commision in pyrmont 2 years back!!!! so lets face it, were investors and if the numbers add up correctly is a good investment!

 

[see_change]

Mount druitt is a big area,
are you guys talking about the city of mount druitt or the outta suburbs?

I have a place 2 streets away from the westfields that wen i finish renovating in a week or two im looking about approx 20-30k increase in my equi according to recient sales prices. Plus the complex my villa is in has mostly nice ppl except for one little kid that i wanna talk to his parents!!!!!!!!!!

Yes some ppl are lowerclass there but that dont mean there bad ppl, and yes there are bad ppl there but hay that happens every where. I build housing commision in pyrmont 2 years back!!!! so lets face it, were investors and if the numbers add up correctly is a good investment!

Thats the problem .


Most People in Mt duitt are very nice , but there's a lot of " One little kid "....
Wait untill he's 15 ... His parents will have even less control.

In pymont the majority ar not Housing commish , I mt Druittt a sizable group are .

Actually I'm not jaundice re Mt Duitt , Just realistic . If I was jaundice I wouldn't have lasted five years.

Cliff

 

[billyb67]

Just my opinion, but Mt Druitt is a hole.

Having lived in Sydney for 30 years , that suburb has always been just a crap place, probably second to Kingswood and maybe Dharruk on some of the worst suburbs in Sydney. Lethbridge Park as well, I got punched in the face for simply looking in the general direction of someone, not a nice experience.

Any of these suburbs, you definitely will lock your doors driving through here.

Though some people are saying it will improve but in 30 years it has changed so little I don't see it getting better very quickly..

 

[moses]

hi guys,

great discussion in here, appreciate the feedback.

Im in the process of purchasing an appartment in Mt Druitt .. i got it for just over 200k and it is currently tenanted for $290 per week.

I bought this place, specifically as an investment, due to the my repayments being significantly less than what i was paying for rent, so it would malke sense that i purchased!

would anyone suggest i got it for a good price, and its not LIKELY that i can go wrong, basing it on the assumption that it is an INVESTMENT?

it is located accross the road from mount druitt westfield in an aprtment lot


note: im new to sydney, had heard of mount druitts bad reputation but figured my repayments were too cheap not to consider my first investment being there.

 

[Nathan]

Congrats Moses.

Which block did you buy in?

512 or 26a?

I got a few out there aswell. Tenants are easy and genrally good to deal with. Simple tenants are the best, as they dont whinge over petty stuff.

 

[moses]

lmao, how you figure that out?

so, you think it was a good decision to buy?

i hear mixed responses, some people say yes and others say i made a horrible decision

lmao

im very happy with my decision, im just curious as to what the general outlook is

 

[Big Tone]

im very happy with my decision,

And that is all that matters...............

 

[moses]

And that is all that matters...............

correct.. but as i said, im new to sydney and VERY new to the buying expirience.

I eventually want to get the property i would like to live in, but i understand its a process.. does it get easier after you buy the first?

how would you suggest I use an Investment, to work out that i eventually get better options to buy again in the NEAR future?

 

[Big Tone]

"...........Equity maaate........"

Everybody has a different idea for what they want out of the investments and investment paths.........some like cashflow some like capital growth, for me its all about ..........'equity'.

When you got equity, you got choices!

Build up as much of the stuff as you can as quick as you can (afford to that is)

Although I am sure there may be others on here that think differently but this is just my opinion and so far has worked well for me.

Big Tone

 

[moses]

Everybody has a different idea for what they want out of the investments and investment paths.........some like cashflow some like capital growth, for me its all about ..........'equity'.

When you got equity, you got choices!

Build up as much of the stuff as you can as quick as you can (afford to that is)

Although I am sure there may be others on here that think differently but this is just my opinion and so far has worked well for me.

Big Tone

whats the best way to get equity to work?


and out of curiosity, where are your propertys located?

any near mount druitt?

 

[Nathan]

lmao, how you figure that out?

so, you think it was a good decision to buy?

i hear mixed responses, some people say yes and others say i made a horrible decision

lmao

im very happy with my decision, im just curious as to what the general outlook is

How did i find out? I just know the market there well.

Which number did you buy in, il tell you who you purchased it off.

Time will tell, as if it was good or bad. I remember in the past many people told me my purchases were bad, and i still stand back and say the same as i did before to them, $^$&#&#.

your numbers and knowing the recent sales in the district, i would have preferd to purchase last year there, however there are still good buys around. at the end of the day as long as the numbers work for you then thats all that matters. Just looking at something here, I bought 1 in that street last year for $160k different block it would be in, but i fixed @ 8.65% rates and that would cost me an extra $20k over the fixed period.

There is no right or wrong, but at those numbers we look at the positives, you got a fairly new product, bought well under they sold for brand new, and they cover there outgoings by the sounds of your numbers. Therefore its not going to cost to hold it, you bought under where it would have been selling for new, and you wont have any major renovations needed, so for a first one its a simple purchase which has little down side.

What I would be asking your friends, or whomever is telling you otherwise, is... what do you have? and how did you do it? and what is the better decision to get me to where your at?

If they have nothing, then you do what they have done you will get what they have got. If they have something greater ahead of them, maybe listen to their story. Thats my thoughts though.

But congrats and your on the right track and you have a property which has good future.

 

[Ridin-High]

lmao, how you figure that out?

so, you think it was a good decision to buy?

i hear mixed responses, some people say yes and others say i made a horrible decision

lmao

im very happy with my decision, im just curious as to what the general outlook is

i believe its called Rp data