Narrowed it down to Guildford or Meadowbank

[rafters]

Been going round and round in circles and now contemplating buying 1st investment property (house) in Guildford up to $400K. What are peoples thoughts on the area? and Guildford as a good investment choice with respect to CG, location and rental return?............still really considering a Meadowbank 2bd unit as an alternative?...........it's between a house in Guildford or a unit in Meadowbank...between $360 and $400K............

Thoughts will be really appreciated on above and unit vs house as an investment?????

 

[Cherry Pro]

Hi Rafters

What kind of rental yield would you get on both the properties ?

Also, have you been able to obtain the capital growth figures on both houses and units in both Meadowbank and Guildford over the past 10 years ? A quick squizzy at the back of the API magazine should provide that information.

The rental yield + capital growth lwill help you arrive at your gross return.

Is this your first investment ? Presumably this is not going to be the last, so it will serve to have a mixture of houses, units, villas in your portfolio. This is what I'd consider and currently, Sydney is the flavour of the quarter though buying interstate for land tax purposes also makes sense.

Good luck !

 

[Ridin-High]

my indian friend @ work is really keen on buying @ unit @ guildford... but this is for PPOR

 

[pdawg]

Hi Rafters

I have the same dilemma between the 2 suburbs however I'm deciding on PPOR... heavily leaning towards Meadowbank (old unit) as opposed to Guildford (new unit) although there's a price tag difference of anywhere between 50-100K The main reasons are lifestyle choices and a comfortable train ride to work in the mornings.

I know both areas pretty well as I grew up in Fairfield (5-10 minutes from Guildford) for about 20 years but been living in Concord West (5-10 minutes from Meadowbank) for over a year.

If you were to invest in a house in Guildford, the only value I could see is it being located relatively close to the station/shops or schools or a large corner block (for develoopment purposes) and it would most likely be rented to a young family or you would plan to move your own family there yourself in the future. The rental yields look good for the apartments in the area as most of them are located nearby the station and shops. The yields for houses vary depending on location and condition.

As for Meadowbank, the yields don't look fantastic just yet but we are yet to see the extent of the gentrification in the area. In my case I hope it increases in future should I decide to move out in a few years time.

Good luck on your decision and I hope it all goes well

 

[rafters]

I just wish I knew when and if the gentrification will really occur!!

 

[pdawg]

It's already happening. It's won't happen completely overnight though.

A few industrial buildings have been replaced with new waterfront apartments for over a year now. They are are all quite pricey however and with hefty strata levies but the views are quite nice from some of them and they're convenientedly located near almost everything ie transport, shops, major roads, parks, bike track etc.

One of the complexes contains a shopping Village consisting of Aldis and Franklins and a few other well known stores and Rhodes shopping center is only 5 minutes drive.

The only concern I'd have in value is possible oversupply as it looks set to be all apartments in the next few years along the waterfront and behind. The way things have been shaping up, Meadowbank looks set to target young couples (OO), singles (OO), investors and renters.

I've been there 5 times the past fortnight doing various things ranging from timing the walk to the train and ferry from different locations, enjoying a jog around the park, scoping out the shopping village and checking to see if anyone caught fish along the little wharf out there

 

[farmilor]

Did the fish come out with 2 or 3 heads???

 

[pdawg]

Unfortunately noone caught anything when I was there.

I wouldn't eat anything from in there

Lucky I'm pro catch and release

 

[Joe C]

I'd go Meadowbank over Guildford without question. Just look at the surrounding suburbs and amenities between the two.

What does Guildford have going for it? A train station?

Surrounded by Granville, Fairfield & Merrylands all places I would not want to invest in personally (I grew up in Fairfield and have family who still live in the area, so I may be biased).

At least with Meadowbank you take advantage of whats happening in Rhodes, you're close to Ryde, Paramatta & the City and not far from Mac Uni.

 

[troyhunt]

I’ve bought in Guildford multiple times and am very, very happy with the choice. The last place yielded over 7% gross on purchase price and would have appreciated 20% since August last year. Admittedly a fire sale but prices have been very solid after being depressed in previous years. Tenancies have had next to zero vacancy and bar one problem tenant (covered by bond and landlords’ insurance), the places have been filled in next to no time.

The big pros in my mind are proximity to the city (within 20km as the crow flies, 35 mins by train on a direct line), proximity to Parramatta (10 mins by train), depressed prices (less true now than last year but still comparatively cheap) and strong rental demand. Not much new infrastructure going in but the previously mentioned factors are enough to keep me very happy. I’d buy there again in a flash if the right deal came along.