My husband and I are considering purchasing a three bedroom unit in Lakemba, Sydney for investment. Purchase price $470,000. There isn't much data available on three bedroom units in this area on which to base our decision. Are two or three bedders a better investment choice for Lakemba in terms of rental yield, demand and capital growth? Thanks, any feedback appreciated!
Two or three bedrooms
- Thread starter sfk
- Start date
The data currently captured and published does not differentiate between 1, 2, or 3brm units. Capital growth wise I think you could expect a 2brm to perform the same as a 3brm.
For rental demand, most people expect a 2brm unit but a 3brm unit would probably get a better rental as some tenants will pay a premium for the extra room. It should also achieve a higher price on resale.
So in summary, as long as you are not paying much more over the price of a 2brm in the same complex, I'd go for the 3brm. You will also have to pay slightly higher strata levies for it though as it will have a bigger footprint.
For rental demand, most people expect a 2brm unit but a 3brm unit would probably get a better rental as some tenants will pay a premium for the extra room. It should also achieve a higher price on resale.
So in summary, as long as you are not paying much more over the price of a 2brm in the same complex, I'd go for the 3brm. You will also have to pay slightly higher strata levies for it though as it will have a bigger footprint.
check out the abs website to determine the current demographic and projected.
determine what the household will consist of in the future. Single person, couple with kids, couple no kids, what age group.
using this you can determine if there will be a demand for 1, 2, 3 bedrooms, garage, etc.
call some rental agents to get an idea of what rents quick.
if statistics show elderly people are moving in then demand for 3 bedroom top floor non lift apartments probably wont be in demand.
likewise singles and couples moved into waitara. 10 year stats showed this. local kids grew up wanted to stay in the area but could not afford houses. unit prices shot up.
determine what the household will consist of in the future. Single person, couple with kids, couple no kids, what age group.
using this you can determine if there will be a demand for 1, 2, 3 bedrooms, garage, etc.
call some rental agents to get an idea of what rents quick.
if statistics show elderly people are moving in then demand for 3 bedroom top floor non lift apartments probably wont be in demand.
likewise singles and couples moved into waitara. 10 year stats showed this. local kids grew up wanted to stay in the area but could not afford houses. unit prices shot up.
Here are the %s of number of bedroom in Lakemba (include house and unit)
1bed: 4.5%
2bed: 63.7%
3bed: 19%
4bed 7.6%
Yields:
2bed: 5.2%
3bed: 3.6%
I'd go with 2 beds.
Cheers
Andrew
1bed: 4.5%
2bed: 63.7%
3bed: 19%
4bed 7.6%
Yields:
2bed: 5.2%
3bed: 3.6%
I'd go with 2 beds.
Cheers
Andrew
Always best to do your own stats for your rental due diligence - just check out similar rentals to determine what your returns will be (the stats above include houses which would have a lower return as they are older/fibro).
There is a lack of 3 bedders in Lake Mba but plenty of 3+ child families. If it is well located (near school, shops, mosque, station) you won't have an issue finding tenants.
$470k would indicate that it is a more modern unit (compared to the 1960/70's red brick).
There is a lack of 3 bedders in Lake Mba but plenty of 3+ child families. If it is well located (near school, shops, mosque, station) you won't have an issue finding tenants.
$470k would indicate that it is a more modern unit (compared to the 1960/70's red brick).
Thats exactly why i would prefer to buy in Campsie over Lake Emba (just to make it sound a little more prestige
)I figured I've got a higher chance of collecting my rent in Campsie
http://www.smh.com.au/nsw/man-85-charged-with-shooting-strata-manager-in-lakemba-20140425-zqzax.html (earlier this year)
http://www.dailytelegraph.com.au/ne...derly-unit-owner/story-fni0cx12-1226896463338
http://www.smh.com.au/nsw/woman-charged-over-road-rage-scissors-stabbing-20140825-107y2w.html (Read this one in the MX yesterday)
http://www.dailytelegraph.com.au/he...his-lakemba-home/story-fn2mt2ft-1225692844572
http://www.smh.com.au/nsw/police-station-attack-saleh-jamal-acquitted-and-freed-20130315-2g4tn.html
http://www.smh.com.au/nsw/dont-die-...led-after-sydney-shooting-20121219-2bloj.html
http://www.smh.com.au/news/national...hbowl-hit-again/2006/05/05/1146335892994.html
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