Need to know if someone has bought a studio in Parramatta- Woldorf

Hi All,

I want to get into the property investment market. I saw some nice studios in Parramatta all below 190000. I was thinking how effective this is considering charges like body corporate charges and strata charges. The guy whom I spoke with proved to me that it is a cash flow positive property. The only issue is that there close to zero capital growth. I had a brief chat with the banks and looks like only CBA will touch these kind of properties.

I need to know if someone has invested in these kind of properties and what is the experience like. Also where would I learn more about studio investments.

Cheers,
Leo
 
Hi All,

I want to get into the property investment market. I saw some nice studios in Parramatta all below 190000. I was thinking how effective this is considering charges like body corporate charges and strata charges. The guy whom I spoke with proved to me that it is a cash flow positive property. The only issue is that there close to zero capital growth. I had a brief chat with the banks and looks like only CBA will touch these kind of properties.

I need to know if someone has invested in these kind of properties and what is the experience like. Also where would I learn more about studio investments.

Cheers,
Leo
I see this advertised as well, agree with the point on the low capital growth, you'll have slightly higher gross yield but in my view the significantly weaker cap growth is a killer.
 
I have had these and similar across my tablemore than once.

the specialised nature of the security means that its very hard for a normal borrower to get in on these.

That limitation limits the buyer base......... and why they look so "cheap"

ta
rolf
 
I have followed these types of studios in Fairfield, Auburn and Rose Hill. They still double and triple in value as years go by.
 
I had considered a studio before as well, but financing can be a pain. It ties up more deposit. Banks are only willing to lend 60% LVR for studios vs 80% for 1-2 bedroom units.
Could be suitable if you're after more cashflow than growth ie. not working, need cashflow to fund travels ;)
 
I have followed these types of studios in Fairfield, Auburn and Rose Hill. They still double and triple in value as years go by.
In Melbourne I've never seen any go up enough to justify a purchase based on any capital appreciation.

I was looking at some in Ultimo awhile ago and couldn't believe the rental returns, then I saw the Body Corp and the size - 26m2 !

Having said that, I'd consider it, only if the role was for a bit of cash into the portfolio as the only reason. Then again the financing may be a problem and I could find non-studios to do the same role.
 
I know someone who bought one of these about 5 years ago for $130k.

He lived in it as PPOR and has paid it off since. I believe he was on youth allowance for at least 1 year over that period and had contractor jobs here and there for the rest of that time.

So there is capital growth ... it sounds low, but given your relatively low initial outlay (even though you have to pay >20% deposit), it's not hopeless.

He can probably rent it out now for $250pw.

My own experience .... About 7 years ago, I saw some studios in Potts Point and Darlinghurst in much much worse condition that the Parramatta ones for $190k. I didn't end up touching them, but I think I saw a listing last year for something similar in the mid 300k's. That's almost double in 7 years.

I used to think these studios are not good investments. But the numbers can work. If you want to start small, it's an option ....
 
University of Western Sydney to build high-rise campus in Parramatta CBD

Just saw this, Re: Parramatta:

http://www.theage.com.au/nsw/university-of-western-sydney-to-build-highrise-campus-in-parramatta-cbd-20140409-36cu0.html - The Age - 9.04.14

"A signature high-rise building will be the centrepiece of a university campus for up to 10,000 students in the Parramatta central business district.

The University of Western Sydney board of trustees gave in-principle agreement on Wednesday to develop a new multi-storey home for the university, estimated to cost more than $120 million to build, in the "civic heart" of Parramatta...

...Cities don't get many big lumps of investment like this in the terms of capital and sheer numbers of people in such a short period of time," he said. "It's a game-changer and will change the Parramatta CBD forever and give it an unknown level of vibrancy..."
 
Students don't have money, they can't spend what they don't have.

It is a big call that there'll be 10,000 students but the number includes all sorts ie full and part timers (who only rock up for lectures).

As Parra is well served by public transport, most students will attend the campus would be commuting not living locally.
 
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