silly question

[wwwqi]

Hi All

I know this should be a place to post questions and discussions about where to buy, but I was wondering what about places that are a definitely no no? especially around sydney.

If it's a stupid question please feel free to tell me. I'm still out here learning.

Tanks
wwwqi

 

[kissfan]

Hi wwwqi.

Perhaps if you mention some of these suburbs, you might get some responses based on peoples experiences.

Regards
Marty

 

[Nathan]

deoends some people would say mt druitt bad, but why? coz it isnt the northern beaches? i reckon all areas are good in different ways... some areas are rough but theres still money to be had. if your after a nono i would say no no area is ultimo unilodge, or overpriced stock in up market sydney suburbs at this point...

 

[wwwqi]

what do people think about homebush bay, homebush west and surrounding suburbs?

 

[Mom]

Close to city but definitely overpriced.

 

[wwwqi]

what makes you say they're overpriced?

 

[qonyx]

My first post as a newbie though here goes.

I would like to answer with a question.

I have been thinking that property is overpriced when the gross return < 6%.

Why 6%?? Just a percentage that is closest to the current market interest rate that is still achievable in the current market. (ie 220k need to gross at least 253/week in rent)

I'm not saying that this is right but would like some of the more experienced folks on this forum to help respond to whether this would be a "realistic" assumption of whether this could be used as an indicator of overpriced or right-price? (obviously Captial Gain doesn't factor into this nor does scope for yield to improve but then thats why I'm a newbie)

Thoughts????

 

[wwwqi]

nice post qonyx, im a newbie too, but that's one of my current criteria when looking for IP as well.
What do ppl think of granville?

 

[Mom]

If i had money to buy in homebush west... I would wait a bit longer to buy in eastern suburbs like randwick etc. Close to the beach and happenings. The price is comparable.