sydney opportunities ??

Oscar

Oscar

Friend just sold her Sydney Eastern suburbs IP for a rotten price! It's right NEXT DOOR to mine on the top floor of a beatiful Art Deco block. She accepted $485K. Out of the 8 properties for auction yesterday evening NONE reached their reserve and I think only 3 sold. I thought the value of my unit was around $520K. So did she! I have no intention of selling so not an immediate issue.

The good news is that the rent she commanded for this IP exceeded my expectations at $440/week. I have just re let another eastern suburbs IP where I did not have to advertise and received an additional $20 per week with no vacancy. A big change in my experienes throughout 2004 and some of 05.

So "my area" is experiencing some challenges in sales prices but opportunities in increasing rents. In this example we have approached a 5 % gross yield (well, 4.7 to be exact).

I reckon this "trend" of falling price, rising rent will continue in the east and if so yields will look better again. I will be watching VERY closely the next 1 to 2 years for the right opportunities to buy in my "home" area again. Meantime it's all in the equities game...
 
Oscar
My wife bought her IP ( unit ) a few years ago in the inner-west, its probably the same value today as what she paid then ($425k) rent however has gone up about 15% since then and hoping for a further 10% this year ;) but yield still has a way to go before it gets to 5%.
 
Oscar,

My area has also experienced some downturn since the boom. House and land packages in the bottom quartile in North Narrabeen used to sell for around $600-$650K. Now they're coming on the market at that price but being dropped by about $100K before selling. A fair few have recently sold for around the $500-$550K mark.

I liked SeeChanges post in another thread about trying to buy at a 50% discount to the previous market highs. If that's possible in my hood then I should be waiting for these to come down to the $350K mark. That's a bit of a stretch since Nth Narra is a bit of a sleeper and thats the level these properties were at prior to the last boom. I think $400-$450K might be achievable though. They rent for about $450/wk today and with some elbow greese and a lick of paint they'll revalue up quickly and add $50-100/wk in rent.

I'm with you for now though. My money's in the equities market and I'm watching my hood closely waiting for prices to come off and rents to go up to the point that its viable again.

Cheers,
Michael.
 
Michael

In the last slump ( 94 ) while looking for PPOR saw one house in Pymble sell in high 600' . Sold for about in late 80's for 1.1 . Another house , east side Gordon , walk station , sell in mid 300's . Sold for 550 at same time as other.

Both well positioned houses which would have sold like hot cakes in last boom. First one, probably hih 2 mill , maybe 3. Other one low 1 mill.

So over doubling from previous boom , but 3-4 times increase from slump to following boom

See Change
 
MichaelWhyte said:
I liked SeeChanges post in another thread about trying to buy at a 50% discount to the previous market highs. If that's possible in my hood then I should be waiting for these to come down to the $350K mark. That's a bit of a stretch since Nth Narra is a bit of a sleeper and thats the level these properties were at prior to the last boom....
Cheers,
Michael.
Click to expand...

Well, listen Michael, if anything that even vaguely resembles a house comes up along in that price range, you be sure to give me a call :D
I'll be lining up at the agency, chequebook in hand!
 
see_change said:
In the last slump ( 94 ) while looking for PPOR saw one house in Pymble sell in high 600' . Sold for about in late 80's for 1.1 . Another house , east side Gordon , walk station , sell in mid 300's . Sold for 550 at same time as other.
Click to expand...
See Change,

Nice one. So, if this slump is as painful and protracted as it is panning out to be, then the buying opportunities stand every chance of being at pre-boom levels. I would like to think I could buy a house and land in Nth Narra for around the $350K-$400K mark renting for $500/wk. That's not too much to ask is it? :D

Sorry Jacque, if I see them at that price then I'LL be the one first in queue at the agency... ;) I'll call you when my LVR and servicability hits the wall, or maybe I'll just buy a cash bond and keep going. :rolleyes: :D

Cheers,
Michael.
 
MichaelWhyte said:
Sorry Jacque, if I see them at that price then I'LL be the one first in queue at the agency... ;) I'll call you when my LVR and servicability hits the wall, or maybe I'll just buy a cash bond and keep going. :rolleyes: :D

Cheers,
Michael.
Click to expand...

Greed will get you nowhere Michael. It's all about contacts :)
We can use each other;)
 
Jacque said:
Well, listen Michael, if anything that even vaguely resembles a house comes up along in that price range, you be sure to give me a call :D
I'll be lining up at the agency, chequebook in hand!
Click to expand...

JP

Where was your cheque book this time ??

I know where mine is , but it's busy at the moment.

See Change
 
Hehehe... :D

As an abundance mentality guy, I can safely state that there will be PLENTY of opportunities going around soon enough for us all to fill our boots. If I spot a good trend appearing then you lot are all on my "must let know" list.

Of course, if I had to prioritise then Jacque would get the first phone call. She's FAR better looking than the rest of you mob! :eek: :p

Cheers,
Michael.
 
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