Mt. Druitt seems to be popping up a bit. Why is everyone so keen on it? I know nothing about Sydney so your thoughts would be really handy. Is it close to rail, how long to get into the city. Is it a family suburb, lots of units???? Would I be better to buy a house or a unit if I looked at Mt. Druitt?
And same questions about Seven Hills?
Mount Druitt is traditionally a pretty 'scummy' area hence the property prices are significantly below the Sydney average house price. The yield in Mount Druitt is quite high, its not hard to find places returning 6% or more and the capital growth over the last 10 years has averaged around 9%.
As an investment, the numbers stack up. But it does depend on the quality of tenant you get so a good PM (as always) would be very helpful...oh and landlord insurance.
Mount Druitt has a big Westfield smack bang in the middle of the suburb, and hospital, a train station and easy access to the M4 motorway.
Other than the demographic for the area the only negative I can see is the availability of land. There is a huge amount of land earmarked for release so the supply will be abundant for the next 10-20 years, saying that with construction prices the way they are now (and they're only going to get worse) existing housing stock will be dragged up in price.
Seven Hills is 27km from Sydney CBD where as Mount Druitt is 38km, so 7 Hills is much closer in. It also has easy access to Westmead hospital and the Hills Private hospital, has a railway station, very easy access to the M4/M7/M2 motorway's and has a reasonable size shopping centre (guess where
my business is located?).
House prices in Seven Hills are dearer than Mount Druitt and so are the rents but without looking into it I'm assuming yield is lower ~5% and CAGR is also ~9%.
Is it my budget that is driving you all to mention the two places above or is it that you can see great growth there in the future? and why?
Yes and No, Mount Druitt does fit nicely within your budget but as I mentioned earlier all the numbers stack up also.