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From: G V


Hi everyone,

I am about to buy my first ip. Today i saw few units/townhouses through an agent. Out of all them I liked the new 3 bedroom unit(near Sefton Railway station). The unit is good quality construction including spacious balconies and has two secured car spaces. Asking price is 300K. Can anybody throw me light on projected growth prospectus for Sefton area. Is it worth investing. What is the potential for rental income. Thanx in advance.
GV

 

[Rolf Latham]

Reply: 1
From: Rolf Latham


Hi GV

Sefton = Chester Hill

Median Sale price for units last year 183k

Median Sale price of house 246 k


Unit performance: 98, 6.7 % growth, 99 was 12.4 %, 00 was 0/9 %

Predictive Residex for units:

three years 8 %
Five Years 7 %
Eight years 8 %

Average Rental return units - 5.1 %

at 300 k, your unit would be in the upper quartile, probably top 5 % of even the new unit market.

Ta

Rolf

 

[WebBoard]

Reply: 1.1
From: G V


Hi Rolf,

In your reply you have said

Average Rental return units - 5.1 %-

Is it a good return. Today i went to see the real estate rental boards to find about expected rents. There were not many units for rentals.The agent says it would be rented for $300 but i would be happy for $265 . is it a good return on a $300k property. (this i am saying as i don't know the area ).

at 300 K, your unit would be in the upper quartile, probably top 5 % of even the new unit market. - Is it a good buy or too expensive.

I saw one more ip at sutherland. A 2 bedroom new townhouse under construction for 320k. it is likely to be completed in sept 01. The townhouse is a standard size (nothing extraordinary). For this also i went and saw rental advts in sutherland. similar property fetches $260 - $275 per week.

I am in a dilemma between the 2 property. any advice will be well received and appreciated.

thanks

GV

 

[paulzag]

Sefton

Reply: 1.1.1
From: Paul Zagoridis


$265 rent per week on a $300K property is only 4.59% gross. In western Sydney that is AWFUL (in my opinion)

$300 per week gets you to 5.2% gross. Slightly better.

I'd take 5% in Sutherland over 5% in Sefton/Chester Hill any day. But then again I wouldn't take 5% anywhere unless it represented at least $30K instant equity.


Dreamspinner

 

[WebBoard]

Sefton

Reply: 1.1.1.1
From: Samantha Lind


Howdy,
Have to agree with the Dreamspinner, I wouldn't be happy with 5% anywhere either. Do you really want to be negatively geared?
Better deal would be say 250K for prop. - $340 rent.
Just my opinion.
Sam