What do you think of Auburn?

[blessme]

Guys,

Just wondering, what do you think of Auburn or Lakemba?in the terms for long term growth?

Personally I'm a bit skeptical about that area as we know about shooting etc. but at the same time location wise its a good location and infrastructure. What I think personally might not be the same as what investors think

 

[roypropertyinv]

I like Auburn prospects for the long term (2020) as I see it is close to Parramatta Road which Govt have already said is in line for a huge facelift when WestConnex is built.

 

[JRP]

There has been some substantial growth in all the older style units in Lakemba.

Although it does have a stigma, it is no far from the city.

can still snag a 2 bedder around there for 300k if your lucky and always there and rentals are strong.

Lakemba was once on my radar, until i promised myself i wasnt going to buy in Sydney until the dust settles.

 

[devank]

until i promised myself i wasnt going to buy in Sydney until the dust settles.

You are going to wait for a long time


Auburn - demographics is a bit doggy.. but it has everything else. Redfern was like that 10 years ago!

 

[Scott No Mates]

There has been some substantial growth in all the older style units in Lakemba.

Although it does have a stigma, it is no far from the city.

can still snag a 2 bedder around there for 300k if your lucky and always there and rentals are strong.

Lakemba was once on my radar, until i promised myself i wasnt going to buy in Sydney until the dust settles.

Those sub-$300 2 bedders are getting rarer - either poorly located or a long way from the station.

Adjoining suburbs aren't bad either.

 

[miscg]

Guys,

Just wondering, what do you think of Auburn or Lakemba?in the terms for long term growth?

Personally I'm a bit skeptical about that area as we know about shooting etc. but at the same time location wise its a good location and infrastructure. What I think personally might not be the same as what investors think

According to last month's property magazine the area has potential

 

[ZachAnSel]

Prefer Granville than Auburn due to closer to Parramatta CBD.

 

[starter]

All those areas have seen 20% growth over the last 12 months, so the stigma doesn't seem to be holding it back too much.

 

[RetireRich101]

I had a tenant recently moved from Auburn 'due to the recent shooting' and unsafe for her family to stay. Guess where she's staying now...2770! go figure.

 

[see_change]

I had a tenant recently moved from Auburn 'due to the recent shooting' and unsafe for her family to stay. Guess where she's staying now...2770! go figure.

Out there they use home made bazooka's and rugs to carry the bodies out ..

Cliff

 

[JayOh]

Our first (and so far the only) IP is an old 2br house we bought in early 2012 in Auburn. The timing was good and we've done well from it - spent $20k on paint, carpet, bathroom, laundry, a bit of kitchen work and some landscaping. Had it revalued early Nov 2013 and the val came in at $67k over the purchase price.

Finding a tenant has been a bit of a struggle - our first PM was overly optimistic after all the work we did and it sat on the market overpriced for about 6 - 8 weeks before we got a tenant in after a few drops in asking price. They turned out to be dodgy and we got rid of them last January. Again spent a number of weeks on the market and had to drop the rent by $50 pw before we got a tenant in. The same tenants are still there and looking to sign a lease renewal again and we've raised the rent $10 each renewal.

I like the area and I like the prospects for future growth. It's very convenient to roads, rail, shops. When we were doing the reno everything we needed was just a few minutes drive - hardware, carpets, lighting etc, there's lots of home improvement places in the area, not to mention all the clothing outlets.

The population is a real mix too, middle eastern and asian where Lakemba is mostly middle eastern. The shootings might be a bit of a concern, but it's not innocent bystanders getting shot at, it's dodgy people shooting dodgy people, so as long as you don't get involved in selling drugs you should be ok.

Personally I think I would favour Auburn's long term prospects over Lakemba as there is a lot more happening around it that will keep the values going up.

 

[starter]

I bought an apartment at the end of 2012 in nearby Guildford for 250k, has been rented out for $350 pretty much since settlement and so far so good with no issue (knock wood).

 

[Sam Yue]

There has been some substantial growth in all the older style units in Lakemba.

Although it does have a stigma, it is no far from the city.

can still snag a 2 bedder around there for 300k if your lucky and always there and rentals are strong.

Lakemba was once on my radar, until i promised myself i wasnt going to buy in Sydney until the dust settles.

Me too, I will go dig my backyard after the dust settles.

 

[starter]

Me too, I will go dig my backyard after the dust settles.

Not sure if that's a great idea in Auburn, who knows what you'd find.

 

[Scott No Mates]

The population is a real mix too, middle eastern and asian where Lakemba is mostly middle eastern.

There has been a trend over the last couple of years towards a change towards Bangladeshie. The last lot of applications I took didn't have a single one from the middle east.

 

[JayOh]

There has been a trend over the last couple of years towards a change towards Bangladeshie. The last lot of applications I took didn't have a single one from the middle east.

Funny you should mention that - our first tenants were a young turkish family, the current tenants are bangladeshi refugees through the red cross. The neighbours were a bit concerned at first about 4 young-ish guys living there, but they've been pretty good and both sets of neighbours are pretty happy with them.

 

[Mick C]

Lakemba - Good old Lakemba, great rental yield + slow CG...but the last 12 month it has sky rockted and gone up by 10-15%, but that's probably just a catch up from the last 3 years where it only experienced minimal CG; if you can pick up a unit for around $260k with lowish strata of around $400 p/q than your doing well and it would rent for around $320 p/w or there abouts = positive yield from day 1.

Avoid the main road, the valuation just doesn't stack up. unless your buying it for a bargain


Auburn = very hard to find a positive yield property these days, as strata in auburn i find are generally more expensive as the building are larger and newer. Def don't buy a 1 bedder! no CG....but if you can find a 2 bedder for around low $300,000 with decent strata your doing well.

As mentioned, granville slightly better than Auburn if you have the income/serviceability and your chasing a bit more CG and don't mind lower rental yield.

 

[starter]

The days of getting a 2 bed unit in Lakemba for 260k are long gone.

 

[Scott No Mates]

So are $400 / qtr levies especially if you are looking at smaller blocks.

There are a couple of whole blocks on the market at present.

 

[Mick C]

The days of getting a 2 bed unit in Lakemba for 260k are long gone.

You are right...done 2 in Oct 2013 for $260 and $255....just looked at the prices again in the area and it's sitting around >$300 mark...geez

Sorry been recently buying down south around the gong so been out of the Lakemba market for a while now.