What do you think about Penrith ?

whitehope06

whitehope06

Hi all
I've just found 1br unit in Penrith for $135K and it will be rent out for $150 per week , so what do you think ? I have no idea about this area ! I tried to find some info ,but no luck.

any advice will appreciated
 
Penrith Wiki


As in most circumstances when you have a high yielding property you can probably kiss capital gain goodbye. I'd dare say that this is the case for several areas in and around Penrith.
Its pretty much a low income area that does have its fair share of crime.
Th M5 does provide reasonably fast access to the city, and there is masses of industrial development going on at Eastern Creek on the site of the old Australia's Wonderland about 10kms away.
As with all IP's, if the numbers stack up and its what your after then go for it.

Go to the link below, scroll half waydown and plug in Penrith to get a general idea on whats happening in the area.

http://reports.rpdata.com.au/
 
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I don't think this is a great return either and units in Penrith? Houses and Townhouses but not sold on units yet.

Why not look at Wiley Park.....a few mortgagee sales and direct sales of units where you can pick up a 2brm unit for 150-160k. The rental demand is such you can get 220-250pw. These suburbs are only 13-15klms from the CBD. Ensure that strata rates are 350 of less pq.

Good luck!:D
 
sash said:
I don't think this is a great return either and units in Penrith? Houses and Townhouses but not sold on units yet.

Why not look at Wiley Park.....a few mortgagee sales and direct sales of units where you can pick up a 2brm unit for 150-160k. The rental demand is such you can get 220-250pw. These suburbs are only 13-15klms from the CBD. Ensure that strata rates are 350 of less pq.

Good luck!:D
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thanks everybody.
is it right to assume in these areas ,Penrith,Wiley Park,... when you can buy a 2br unit for about 150-160k , the depreciation is low and there would be not much capital growth ?
 
My first IP was in Penrith. Paid $125K for a house in 1990 and sold 7yrs later for $145K Whoopee :)
Some two years later (yes I hear you all saying HOLD HOLD HOLD) it was worth almost twice what I paid. Lesson learnt- a cycle is called a cycle for a reason and property can be very forgiving over time.

However, I digress.....

Penrith has good/bad parts just like all suburbs (well, most) and I've known relatives and friends who've lived there for decades without any trouble from burglars, muggers or hoons. Like anywhere, there are hotspots and I would imagine that the worst parts would be around the station? I'm sure some Penrith residents will shed some light on this...

Wiley Park I wouldn't touch. But, again, that's just personal experience and biased opinion. Having relatives in nearby Lakemba and Yagoona has pretty much solidified my thoughts that I won't be considering any IP's there in the near future. When my grandparents were there many years ago now, it was a different place but it has changed a lot. Suffice to say that I believe there's better places to spend your money in Sydney. Not all will agree.

No one on here can advise on where to best invest- that's up to you and your research. Oh, and your budget, of course!!
 
Jacque said:
No one on here can advise on where to best invest- that's up to you and your research. Oh, and your budget, of course!!
Click to expand...

I hear you Jacque. I'm doing my research ,but I think it's a long way to go !
Personaly I prefer inner city, Surry Hills,Darlinghurst,.... but so far the only ones that I found are studios for around $ 130 -$240 and I don't know if it's worth to spend that much money on a studio :( and I'm not sure about the rent side of it.
 
I grew up near Penrith and I think it's a good place to live. there is much more crime in the suburbs around parra and where I live now in the lower eastern suburbs.

The market has dropped heaps in the last few years so this year is probably a good time to have a look out there. Rental demand is good too, not anywhere near as hot at inner sydney but the properties don't take long to fill if there are in good nick.

I would go for a home that is more than a short distance from Penrith station. the majority of people drive to work, so being walking distance to the station is not so important.

There's a part of Penrith known as Lemongrove/Kingswood Park. I'd keep away from parts of those suburbs as they still have a lot of housing commission there. The agents tend to list them under the suburb name of Penrith rather than the names above to try to entice buyers over there. Some parts of those burbs are nice, but I would go for a drive to check it out if you were keen to buy.

Feel free to PM me if you have any questions.
 
Hi

I grew up in the 'parks' area of western Sydney and Penrith was always dubbed 'housing commission', 'doll bludging' area.

My partner moved there 2 yrs ago, until then I had never been to the area. I love it...and the part I am referring to is on the Panthers club / Nepean river side. Keep away from the station area and the many units on the other side of Mulgoa road. Not long ago I nspected a unit not far from the station and the surrounds was not crash hot.

It is a nice area (Panthers side of Mulgoa road), great for a family to start out (esp along the streets near the Nepean river). As for an IP, probably not, esp a unit. Houses are fairly cheap in some parts of the area, but you do need to be careful exactly where they are.

Just to add more to this, I know there is a member of this forum who has investments out that way inlcuding in Letherbridge park (near St marys), she seems to be doing fine.

Good luck
 
Boost said:
Just to add more to this, I know there is a member of this forum who has investments out that way inlcuding in Letherbridge park (near St marys), she seems to be doing fine.
Click to expand...

You talking about me.:eek:

I live at Lethbridge Park & have several IPs in the surrounding areas. The whole area from Mt Druitt to Penrith has pockets that are good & pockets that are bad.

You will get a good yeild out this way, as prices have pulled back somewhat since 2003. The rents are continuing to rise too. This is good because there is a lot of room for them to go up again in the next upswing.

In Mt Druitt it is easy to pick up a 3/4 bed house for under $200k which will rent for $240pw. This is cheaper than just a block of land at the new estate Ropes Crossing (backs onto Tregear & Willmot) & can be up to twice the size. There are now a few knockdown rebuilds happening in the area as well.

Do not believe what people tell you about the area being dominated by low income types either. There are many out this way on high incomes, but of course there are still those whose sole source of support is centrelink.
 
skater said:
In Mt Druitt it is easy to pick up a 3/4 bed house for under $200k which will rent for $240pw. This is cheaper than just a block of land at the new estate Ropes Crossing (backs onto Tregear & Willmot) & can be up to twice the size. There are now a few knockdown rebuilds happening in the area as well.

.
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Hi Skater
I did a search on "domain.com.au" and I couldn't find any house under $200k,but I found a 3br townhouse (looks new !) for $250k close to Westfield shopping centre. what do you think about that ? I don't know how the rent would be .
 
whitehope06 said:
Hi Skater
I did a search on "domain.com.au" and I couldn't find any house under $200k,but I found a 3br townhouse (looks new !) for $250k close to Westfield shopping centre. what do you think about that ? I don't know how the rent would be .
Click to expand...

http://www.realestate.com.au/cgi-bi...t=&header=&cc=&c=38475870&s=nsw&tm=1210196843

http://www.realestate.com.au/cgi-bi...t=&header=&cc=&c=38475870&s=nsw&tm=1210196843

http://www.realestate.com.au/cgi-bi...t=&header=&cc=&c=38475870&s=nsw&tm=1210196843

http://www.realestate.com.au/cgi-bi...t=&header=&cc=&c=38475870&s=nsw&tm=1210196843

http://www.realestate.com.au/cgi-bi...t=&header=&cc=&c=38475870&s=nsw&tm=1210196843

Gee, didn't look too far.

Why would you pay $250k for a townhouse on minimal land when you can get a house on a large block for $200k. There are a lot of units & townhouses around the station. Some of them are nice, some are not.

If you are interested in the area you need to come in person & look, not just rely on the websites. Some of the houses are grotty, but with a mown lawn, a paint job & a few other basic low cost tidy-ups, you will get a good return.
 
skater said:
Gee, didn't look too far.

Why would you pay $250k for a townhouse on minimal land when you can get a house on a large block for $200k. There are a lot of units & townhouses around the station. Some of them are nice, some are not.

If you are interested in the area you need to come in person & look, not just rely on the websites. Some of the houses are grotty, but with a mown lawn, a paint job & a few other basic low cost tidy-ups, you will get a good return.
Click to expand...

thanks Skater
the first two were under offer or contract ,but the rest were fine. I think my mistake was when I just looked at "Penrith" area :(

You right I have to drive around the area to get a feeling about it.
 
whitehope06 said:
thanks Skater
the first two were under offer or contract ,but the rest were fine. I think my mistake was when I just looked at "Penrith" area :(

.
Click to expand...

Also, remember that the list price is not the price that many of these will sell at & you can usually negotiate down a fair way.
 
Penrith?

Of the people have have bought in the penrith are in the last ten years how satisfied are you of both your rental return and/or (more importantly) capital growth...............

Big Tone
 
Also, given your investment/s return/s would you continue to invest in the area?

Are you comfortable with the areas future and prospects.?

Big T
 
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