Units in St Marys (Syd)??

[ralph wiggum]

Hi guys,
Just looking at some options for my next purchase - looking for a cheapy with good cashflow and wanted some advice from those in the know on the St Marys area.
I have seen numerous units in St Marys in the $140k-180k getting rents from $190 up to $230 per week.
On a search of RE.com there were only 5 units available to rent, indicating that there may be a shortage of good rentals at the moment.
I am not sure on the CG prospects, but am hoping the reduced interest rates and FHG may see some buying activity in the cheap end of the market, possibly pushing up prices in the next year or so.
Any advice from locals in the area? Areas to avoid, or reasons why I may be on the wrong track with this area?
I would be interested to get your opinions.
Cheers
Matt

 

[Mom]

with that sort of money, buy in Wiley Park or lakemba. $180 get you $270-300 pw rent.

 

[depreciator]

Matt,
I have heard that there is a difference between the north side of the rail line and the south side, but I can't for the life of me remember which side is preferred. You might have to go out there and have a wander around - in daylight.
But I'm wondering how much the houses out there are? You might be able to pick up a house on a decent block of land for not much more than the price of a unit. A house might offer better growth prospects, and you would have the body corporate costs (and issues). Just a thought.

Scott

 

[josko]

Hi there Ralph,

I had extended family that once lived in St Mary's.

I would have to say it is right up there with Mt Druitt and Cabramatta as a suburb I would not invest in. The story's I could tell.

I would not be banking on Capital Growth as a major incentive for this suburb but if you are set on it, then I would certainly suggest a house rather than a unit.

Maybe my opinion is too jaunted by what I know of the area. Don't forget you are looking at a demographic of unskilled workers, higher unemployment and single parent families.

Regards Jo

 

[twodogs]

Don't forget you are looking at a demographic of unskilled workers, higher unemployment and single parent families.

Regards Jo

All true Jo, but remember most of these guys are on a reliable fixed income.... Centrelink - we may not want them over for dinner, but with a direct rental payment from their Centrelink payment, makes for good cash flow.

BTW I first looked at SM units in 1995. Averaga cost about $75k so there has been some growth since then. I found the growth come is spurts too, not at all consistent.

For western suburbs units, try Kingswood. Lots of stock, good yields and slightly better class. Also right next to TAFE and Nepean hospital.

 

[Witzl]

For western suburbs units, try Kingswood. Lots of stock, good yields and slightly better class. Also right next to TAFE and Nepean hospital.

Also right next door to the drug rehabilitation and detox centre for the entire western sydney.
But its not really that bad if you pick the right areas, just like any suburb.

As for St Marys... bah... its tame.
Stick to the south side of the rail line - much better in that area, and there are some pockets that are even starting to gentrify.

As for the comments regarding the CG in St Marys.
Please click here, and check your emotive thoughts at the door.

FWIW - i own an IP in Colyton, neighbouring suburb to St Marys. I find it quite a decent family area to be honest, just with a slightly different class of people (and the odd dropkick family)

 

[beachgurl]

I grew up around St Marys. I wouldn't say that it is as bad as Mt Druitt.

The others are correct that the south side is better than the North. You won't find too many units on the north side though.

Most units are situated a km or two from the station. I haven't lived out there for a few years, but I kept a distance from that part of town. There has been a lot of subdivision and new units built in the past few years around there, so I expect the area would be a bit better now.

If you look around hard enough, you may find houses in nearby Colyton or in St Marys for around the 230-240K mark that rent for not much under $300 per week. Better areas and better opportunity for CG.

As for Kingwood units, I wouldn't go there, particularly the blocks near the station.

 

[Cherry Pro]

From API mag - Jan 09

Suburb Annual % growth for houses Rental Yield %
over 10 years
-------------------------------------------------------------------------
Blackett 11 5.9
Dharruk 9.7 4.8
Emerton 11.6 6.4
Hebersham 11.7 4.7
Lethbridge Park 12.4 5.6
North St Marys 8.8 5.2
Shalvey 8.1 5.1
St Mary's 9.5 5.6
Tregear 10.8 5.5
Willmot 9.5 5.5
Kingswood 8.6 5.1
Oxley Park 9.0 5.4
Penrith 9.0 4.6

This should help.

Cheers

 

[Witzl]

beachgurl,

all those St Marys and Colyton properties that were $230-240K are all but gone now. FHBs have come in and snapped them all up.
Very little is left at that price, and what is left is garbage.

 

[Nathan]

i remember i negotiated 180k for house @ GWH colyton 6 months ago, but didnt go through coz i had too much else on my plate @ the time...

crazy out there ey.

its good, but also makes harder to find new deals to put in the bag...

 

[eternit]

i remember i negotiated 180k for house @ GWH colyton 6 months ago, but didnt go through coz i had too much else on my plate @ the time...

crazy out there ey.

its good, but also makes harder to find new deals to put in the bag...

Was it a brick/brick veneer house?

If it was brick/brick veneer then that would be pretty good.

 

[Nathan]

was vynal clad.... was good buy, needed work, but i was finishing my duplex at the time and was little short on cash/worried, so left it to go 2 waste...

 

[ralph wiggum]

Hi guys,
Thanks for your replies re the St Marys area. Regarding the houses - my research indicates that the lower end are currently selling at around $250-260,000, with the average rents around $280 per week. With housing yields around 5.5% and 10 year growth rate of around 8%, units looked a better option to me with yields closer to 7% and 10 year growth also around 8%.
Admittedly I havent been out there yet to check it out thoroughly, as I wanted to narrow down some areas first before going to open houses etc

In response to Mom's coment - I have also been checking out the Wiley Park/Lakemba area. This area I know better being a Bulldogs supporter, and knowing plenty of the other fans reside in there. It has the benefit of being much closer to the city, but like most low entry suburbs, has a stigma detering many from investing and living there.
Matt

 

[twobobsworth]

As far as investing in rough area's there is a great article written by margaret lomas in the current Your Investment Prop magazine.

 

[see_change]

Hi guys,
Thanks for your replies re the St Marys area. Regarding the houses - my research indicates that the lower end are currently selling at around $250-260,000, with the average rents around $280 per week. With housing yields around 5.5% and 10 year growth rate of around 8%, units looked a better option to me with yields closer to 7% and 10 year growth also around 8%.
Matt

At those returns you will be quite negatively geared .

Is there any reason why you expect growth in the short / medium term ?

Cliff