Thoughts on next IP location

[swanqueen]

Thoughts on next IP location - Sydney

Hello all,

I'm in the market for my next IP and I'm after some opinions on which suburbs I should be looking at. I have about 350-400k to spend, looking for someplace with land content (either a house, townhouse, villa, etc).

Yields are important (but of course not sacrificing capital growth) as I am negatively geared with my other properties and don't want to hit a serviceability wall.

I've heard great things about Parramatta and Blacktown booming but have also heard concerns from others about the potential capital growth these areas may have (working class tenants, high crime rates). I've also been told to look into areas like the North Shore where the quality of tenants are much better, but I really doubt I'd even be able to afford anything with land content on the north shore.

Thoughts anyone?

 

[Propertunity]

I've heard great things about Parramatta and Blacktown booming

You've heard correctly

but have also heard concerns from others about the potential capital growth these areas may have (working class tenants, high crime rates).

For $350-400K you are only going to get in an area with the "working class". I know they are "the great unwashed" but most of them are pretty decent folk

I've also been told to look into areas like the North Shore where the quality of tenants are much better, but I really doubt I'd even be able to afford anything with land content on the north shore.

That's correct. You can get a smallish townhouse for $650-700K on the LNS.

 

[swanqueen]

Thanks Propertunity. In your opinion which suburbs should I be looking at? Obviously not all suburbs are equal, Parra and Blacktown being large areas...

Also how would one go about evaluating capital growth in suburbs like these? Traditionally I've always gone about by looking at historical CG and yields, but obviously the west of Sydney hasn't had great CG in the past. Should I be looking at long-term trend on Domain.com for these figures?

 

[ndpjai]

Liverpool and < 1km from CBD (walking distance), untouched for houses with land component say 600sqm\townhouses (3\2\2)\villa, but not for units (already capital growth was there)

 

[Jacque]

Also how would one go about evaluating capital growth in suburbs like these? Traditionally I've always gone about by looking at historical CG and yields, but obviously the west of Sydney hasn't had great CG in the past. Should I be looking at long-term trend on Domain.com for these figures?

Historical cg rates for Blacktown and Parramatta housing have actually been quite comparative to much more "eloquent suburbs". Forget the old myth that you need to buy closer in to achieve cap growth- it's a tired old line really.....

Average CG rates for HOUSES in last decade (2001-2010) Source: PDS

Mosman 7.5%
Rozelle 8.2%
Blacktown 8%
Parramatta 8.2%

 

[Rixter]

Thoughts on next IP location -Sydney

Have a serious look around South Wentworthville..Villa's and townhouses - fits your criteria.

I've put the banks money where my mouth is!

 

[yadreamin]

Have a serious look around South Wentworthville..Villa's and townhouses - fits your criteria.

I've put the banks money where my mouth is!

Your an addict Rixter
Thought the bakers dozen was it for you.
cheers

 

[Rixter]

Thought the bakers dozen was it for you.

Man can't live on bread alone.