sydney suggestions - sub $250k

A

alpina

if one was looking at entering with sydney market with the fhog, what area and type of property would you suggest in the $200-$250k range.

i understand that it wouldn't buy more than a studio in today's current market, but curious to know if it would be worthwhile buying something with $100k down, taking the $7k grant, perhaps spending a little money renovating it, holding it for 12 or so months and hopefully flicking it for some tax free gains.

any suggestions or am i living in la la land?

julie
 
These areas in Blacktown area, may have sub $250k properties

COLYTON
DHARRUK
EMERTON
HEBERSHAM

I am actually suprised that there are any at all left under $250k :)
 
Terrible areas (apologies to anyone that lives there) with not ideal tenants and low future cap. growth after the recent surge.

Maybe ok to hold for the next cycle if you can live with the tenants for that long.




Originally posted by abcdiamond
These areas in Blacktown area, may have sub $250k properties

COLYTON
DHARRUK
EMERTON
HEBERSHAM

I am actually suprised that there are any at all left under $250k :)
Click to expand...
 
remember we are talking about no tenant here - ppor.

cg is very important - holding cost will be up to $150k at current rates as i will be kicking in $100k of my money.

might tenant it out after 3 months if ok with ato as it will allow me to keep it cgt free for up to 6 years if i recall correctly

julie
 
I have a personal theory about these terrible areas......

Mount Druitt (next to the four mentioned) was also one of these "Terrible Areas", but as I was leaving that area (St Clair about 10 minutes away) I noticed that some old houses were coming down and being replaced with better quaility.

In one street there were THREE houses in a row all for sale, within weeks all three had been sold, and were being demolished.

Redfern used to be a "Terrible Area" parts are now very expensive.

These are my personal thoughts, and I haven't gambled my own money on it happening, but I may kick myself in a few years time.

One saying is
You buy the worst house in the best street, and do it up !!
another saying could be:
Buy the worst suburb and do it up !!
 
I think a better strategy would be “buy the worst suburb in the best location”.

Sometimes a bad suburb is just that – poor infrastructure, poor standard of housing, no public transport, far from employment areas, far from recreation/lifestyle areas.

However; if you can find a suburb that has good infrastructure, good transport links, close to employment, close to the city, etc., etc… In the LONG TERM it wont matter what the reputation of the area is like, it will be a winner.

Note however you may have to take a 20yr view (or longer!!!) Some near-city suburbs have had bad reputations for a long time and this can take a long time to change.

Perth example – Maylands is only about 3-4kms from the city but has a lot of public housing and a VERY bad image to Perth people. It is only in the last 5 or so years (due to major re-development etc.) that it has caught up to its nearby ‘good’ suburbs. Prior to this, for at least 20yrs or more it lagged well behind.

If a suburb is currently ‘bad’ there need to be reasons to believe this will change in the future otherwise it will remain ‘bad’.

Just some tired Monday arvo ramblings…
 
I agree with you Bacon,

The thing with this area is that on the other side of the Great Western Highway you have Erskine Park, Minchinbury and St Clair areas. All very close, but much better and more expensive.

All with the same infrastucture, even the main shopping area for ALL these suburbs is in Mt Druitt itself.

The cheaper areas are North of Mt Druitt (closer to the train, shops etc) and the better areas are South, just a little bit further away from the transport links and shops etc.

But again, I am NOT putting my money on it.
 
Weve done work in the schools in the area you mention and my boys have told me about the numerous syringes in the school grounds, the female students at school with babies and the students breaking into their vans and stealing stuff.

Drive around the area for half a day and you will see what i mean.

In my opinion the suburbs north of Mt. Druitt (around Luxford Rd.) will never change.

Having said that they did shoot up in price (driven by investors i think) over the last 3 years just like everywhere else and thats the only time i would buy IPs in the area in the next cycle.
 
Hi alpina. I think you would be hard pushed to find a house in the above mentioned areas for under $250k, a unit maybe but for that money you could buy a unit in other areas as well. I have an I/P close by to the areas above and have had the same tenants for 5 yrs, no problems. The area has really gone ahead in the last couple of years and the Orbital has added value to the area. I personally think that the area will grow as much as any other area due to its proximity to shops, transport schools etc and also for the fact that a lot of major companies have or are relocating to the west. Dont be too discouraged by past reputations, any area has good and bad points.

Regards

Marty
 
really looking at an apartment. either a studio or 1 bedder in inner city/eastern suburbs.

any suggestions - good or bad?

julie
 
Originally posted by JoannaK
You may be lucky to pick up a studio around potts point area for $200k, but it will be tiny
Click to expand...

but will it make for a good capital gain investment? how tiny are we talking 40sq mts?

julie
 
but will it make for a good capital gain investment? how tiny are we talking 40sq mts?
Click to expand...

i know one particular person who purchased 2 studios about 7 years ago now...he bought them for $60k each. I was looking at a couple about a year and a half ago, and then they were around the $120k mark.

and, yes, around 40 sqm
 
Mt Druitt ( the suburbs referred to initially ) is a classic example of timing and is one of the reasons I've been running around buying cheaper, higher returning IP's.

I've worked in Mt Druitt since 88 , and I've seen the full cycle, but only worked out what I should have done after the action had happened.

HIgh percentage of renters. Most people in Mt Dritt are nice pleasant people , but there in a 2-5 % drop kick element . They rent either through housing commish or go for really cheap rentals. If you buy something that is slightly nicer than the bottom of the market , you avoid them so are less likely to have your IP trashed. There are many long term renters who wouldn't even think they could own their own home. Some of these are people who live in sydney but have never seen the Harbour bridge or the opera house ( from the outside ). They make good tenants.

In 88 Mt Druitt was booming , prices were up to 110-120. for the next ten years it went backwards and in the late 99's people were picking up IP's for 60-70k that rent for 180. These are now worth min 200 k up to 250+ . If you bought the correct house you could easily have tripled you money.

Now, in my opinion, is not the time to buy IP's in Mt Druitt. It will be part of my strategy in the next cycle.

see change
 
Have to agree with Brains on this. I work at St Marys (near these suburbs) and a lot of the people I work with have lived around this area for years and have nothing good to say about that entire location. That side of the Gt Western Highway has about 8 suburbs with predominantly HC homes and the entire area has a terrible reputation. I've lived in Oz for over 30 years and it's always been the case.

One person I work with has a lovely 2b unit (IP) with lock up garage at Penrith (a bit further up) within spitting distance of shops and railway station and has only increased in value by $80k in 12 years!! He's not happy and is switching to houses.

I was talking to this person only today about the suburb or Tregear (part of that group of suburbs) and asking if he thought it might get dragged up in price and it's 'tone' lifted as it's right next to a new proposed development of about 800 houses and close to bushland. (You may have heard of some of the fall out. It's on the old ADI site and they will have to cull a lot of kangaroos to build the development). In his opinion Tregear and the other surrounding suburbs are what they are and no new development is going to change that. No real transport system or shopping centres close by and full of riff raff. Always has been and hasn't seen or heard of any changes coming. So as a PPOP or an IP he said it was a big no no.

Having said all this I remember the area of Green Valley used to have the same rep. Now you hardly hear a word about the area because it's changed (although it's taken 20 years).

The same could be said for the "Campbelltown" area. As has been said things happen in cycles, just when the cycle starts and finishes is the hard bit.

Cheers,
Olly



Originally posted by brains
Terrible areas (apologies to anyone that lives there) with not ideal tenants and low future cap. growth after the recent surge.

Maybe ok to hold for the next cycle if you can live with the tenants for that long.
Click to expand...
 
Hi Alpina, If you want inner city, try UniLodge on Broadway. I just bought an IP there for $115k and my partner bought another for $108k
The place is run by Sydney Campus Apartments.
The units range from 16m squared to about 55m.
Prices go from $108k for small studio to around $250k for a 2 bedder.
If you are happy living in a SMALL apartment, it's a fantastic location! Right across the road from Broadway shopping Centre, walking distance to King St, Newtown & Glebe Point Road. 7 mins on the bus into CBD. Walk to Central station. Right across from Sydney Uni and Victoria Park with pool. Heated pool in building plus spa, sauna and gym. 24 convenience store downstairs for those midnight munchies. I rented there for 12 months and loved the place. :D
If you are interested, email me and I'll give you the three listing agents and other details.
 
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