Paddington

[Glenn]

Hi All,

When my wife and I were living in Sydney from 1999-2001 we fell in love with Paddington due to the beautiful Victorian homes, tight streets (slow for traffic) and proximity to the city.

We are wondering what Sydneysiders or anyone with experience in the Paddington property market thinks about the current "state of play" with property there.

Thanks

Glenn

 

[ok180]

Good Area to invest in if you can chip in a few $$$ to cover the shortfall between the rent and loan. I have been looking in the area recently myself.
What i have foung though is i think i would prefer to put my money in Surry Hills or Darlinghurst. They're next door and around $150-$200K cheaper than Paddington and the rents are a little better. Usually around 4% yield.

I cant see much value in buying a run down home and renovating it for the time being. People seem to be paying huge $$$ for old barrels that are falling apart. They're being marketed towards the type of owner occupier who wants to add their "own touch" rather than investors looking to reno and flick, thus the high price tags.

 

[Glenn]

Hi ok180,

Thanks for the reply and the benefit of your experiences and knowledge.

Prices in Paddington don't seem to be any higher than when we lived there...5 years ago now!

We agree with you that another reason that we are interested in Paddington is that many of the properties that have been renovated there have had input from architects and\or interior designers, with no premium being asked for over an unrenovated property.

We did love Surry Hills as well, similar properties but with a different types of residents

Glenn

 

[Jacque]

Some stats for you:

Paddington 2021
Current Median house value $1.050,000
Average cg rate over last 10 yrs 9.8%
Cg rates
last yr -2.42%
2 yrs ago -0.3%
3 yrs ago 15.77%
4 yrs ago 15.92%
5 yrs ago 18.76%

Median rent 2005 $540
Median rent 2005 2.66%
Total return 2005 -1.0%
Total return over last 10 yrs 13.47%

Source: Residex

 

[Glenn]

Prices in Paddington don't seem to be any higher than when we lived there...5 years ago now!Glenn

How easy it is to be wrong! By about 31% it seems!

The 10 year total return figure look pretty strong Jacque, if you could close your eyes and ignore the last 2 years it still would have you sitting pretty.

The current yield, at 2.5% seems to be in keeping with suburbs whose median price is at least double that of the city at large.

Thanks for digging that up

Glenn