Recoomendations please on Dharruk

My information is a few years old, but I understood that Dharruk was the absolute worst of the suburbs surrounding Mt Druitt.
So, I would make sure you have a look around the suburb and check that you are going to be able to get reasonable tenants before paying money.
There is usually a reason why properties are sold relatively cheaply.
Pen
 
Dharruk is quite a small suburb. It does not have a particularly bad reputation. There is strong demand from tenants and there are good quality tenants around.

My main concern with this property is that the income appears to be somewhat inflated. The home is not a new one, so could not command a premium rent for itself. As a five bedder, you would probably be looking at maybe $350pw depending on how nicely appointed it is.

Then you have the teenagers retreat. Newer Granny Flats around the area are renting for $200-250pw, depending on the agent, and if they are one/two bedders.

So, based on those numbers, I smell something amiss. It could be rented out per room. Say, $100pw for a room in the house & $150 for the teenage retreat? That would make sense in as far as the quoted price. It's not something I would touch.

If looking for something with a GF, just buy a house and put one at the back. You will get a new product and the price won't be too far from what you are looking at here.
 
Thanks Skater

skater said:
Dharruk is quite a small suburb. It does not have a particularly bad reputation. There is strong demand from tenants and there are good quality tenants around.

My main concern with this property is that the income appears to be somewhat inflated. The home is not a new one, so could not command a premium rent for itself. As a five bedder, you would probably be looking at maybe $350pw depending on how nicely appointed it is.

Then you have the teenagers retreat. Newer Granny Flats around the area are renting for $200-250pw, depending on the agent, and if they are one/two bedders.

So, based on those numbers, I smell something amiss. It could be rented out per room. Say, $100pw for a room in the house & $150 for the teenage retreat? That would make sense in as far as the quoted price. It's not something I would touch.

If looking for something with a GF, just buy a house and put one at the back. You will get a new product and the price won't be too far from what you are looking at here.
Click to expand...

Hi Skater,
You are spot on and you are right the house is rented as room basis. There are 5 tenants in the house and one in the Granny flat. That is why the projection is very high. Did an inspection yesterday and was bit surprised the way the house was kept. It is well maintained (better than a family tenant). The agent confirmed they manage the property for quite long and never had a vacancy of any room for more than 3 weeks. Only issue i need to pay the outgoings (1200$ for Electricity and ~300$ for water per quarter). I need to do some calculations and find out what is return...
Other issue is the house is subdivided and is in the back side of the property with dedicated drive way on title...
Bit confused now....

Velli
 
Thanks Penny

pennyk said:
My information is a few years old, but I understood that Dharruk was the absolute worst of the suburbs surrounding Mt Druitt.
So, I would make sure you have a look around the suburb and check that you are going to be able to get reasonable tenants before paying money.
There is usually a reason why properties are sold relatively cheaply.
Pen
Click to expand...

Thanks Penny
I was under the same impression. But when i did a search from various resource i found the perception is now changing and my drive through confirmed it. The suburb was very neat and clean with lot of new houses ...

Velli
 
kvellimalai said:
Hi Skater,
You are spot on and you are right the house is rented as room basis. There are 5 tenants in the house and one in the Granny flat. That is why the projection is very high. Did an inspection yesterday and was bit surprised the way the house was kept. It is well maintained (better than a family tenant). The agent confirmed they manage the property for quite long and never had a vacancy of any room for more than 3 weeks. Only issue i need to pay the outgoings (1200$ for Electricity and ~300$ for water per quarter). I need to do some calculations and find out what is return...
Other issue is the house is subdivided and is in the back side of the property with dedicated drive way on title...
Bit confused now....

Velli
Click to expand...

The house will be on it's own torrens title. If it wasn't, it would not be able to have a granny flat. If you are happy with the per room arrangement, you will find that you can probably get more for the flat than the current arrangement, and, when my daughter was looking for accommodation, the cheapest she could find was around $150pw, and that was in a similar arrangement, so you could probably squeeze extra out of it. Mind you, I have done no research on this, just recall what my daughter was telling me at the time.
 
skater said:
The house will be on it's own torrens title. If it wasn't, it would not be able to have a granny flat. If you are happy with the per room arrangement, you will find that you can probably get more for the flat than the current arrangement, and, when my daughter was looking for accommodation, the cheapest she could find was around $150pw, and that was in a similar arrangement, so you could probably squeeze extra out of it. Mind you, I have done no research on this, just recall what my daughter was telling me at the time.
Click to expand...

Thanks Skater....
Will do some more research on this...

Velli
 
Be wary with this agency as they go around the Boarding Act by renting rooms on share basis.

When I spoke to Sonia some while back about a few properties that they had, she was greatly inflating the returns by using the figure of $130 per room.

You simply cannot use such a standardisation method when properties differ in age, location and quality of fitout.
 
skater said:
Dharruk is quite a small suburb. It does not have a particularly bad reputation. There is strong demand from tenants and there are good quality tenants around.
Click to expand...

What :eek: I have lived and worked around that area for years. and Dharruk is a dump. Like all areas though, there will be good and bad tennants available. You may get a a few more derros wanting to rent your house then in other areas but not much you can do and I'm sure the property manager would be used to that working in that area. That said keep your insureance up to date
 
Last edited:
Hi - this piqued my interest but would like to check thoughts on :

1. shared accommodation, is this really challenging ?
2. insurance for unapproved granny flat ..has anyone dealt with this ?

Thanks for your help.
Amelia
 
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