Woodridge in latest SPI mag

[Dbz_Vic]

There is a segment on Woodridge in the latest SPI mag which i find interesting as i have been looking at purchasing an IP there the last couple of months, but ultimately ended up purchasing in Springwood instead. Sentiments from experts are divided about this suburb due in part to the stigma, very high unemployment (14%), very high rental rate (50%) = very high investor presence, and very low household income ($800 pw), and even though the gross rental yield is still considered high (6-7%), they are falling due to increased competition from investors. Vacancy rates remain very low at <1% in August. Prices bottomed in 2012 and has been on the rise (>11%) in the last 2 years so some investors would have seen good gains if they purchased in 2013. Herron Todd White seems to think that markets like this are more volatile and higher risk and i can see why, but that doesn't discount opportunities as everyone's strategy and risk profile is different.

Just wondering if people here are still looking at purchasing in Woodridge and what is your strategy? Some investors have also drawn comparisons to Blacktown and Mt Druitt in NSW, but is it fair?

 

[zimby]

I wouldn't invest there, remember you still need to maintain your "asset"
You may find having a rental property in this neighborhood a bit stressful.
This is a generalization tho and you might get lucky with tenants, however the risk factor is increased.
There are other suburbs doing well with less of a risk profile.

 

[Newbieatlife]

I wouldn't invest there, remember you still need to maintain your "asset"
You may find having a rental property in this neighborhood a bit stressful.
This is a generalization tho and you might get lucky with tenants, however the risk factor is increased.
There are other suburbs doing well with less of a risk profile.

My ethnic, blue collar tenants in my older Woodridge property have never complained about anything (apart from serious issues like a leak in the hot water tank), take care of the property and are generally "grateful" to have a property they treat as though it is one of their own.

Meanwhile, the last few things my 'Australian', more 'affluent' know-it-all tenants in St Lucia complained and 'demanded' to be fixed was a cracked kitchen tile, weathered deck to be re-stained, extra power points in each bedroom and security screens to be installed on all windows and doors.

 

[EN710]

Meanwhile, the last few things my 'Australian', more 'affluent' know-it-all tenants in St Lucia complained and 'demanded' to be fixed was a cracked kitchen tile, weathered deck to be re-stained, extra power points in each bedroom and security screens to be installed on all windows and doors.

Do they pay enough premium to justify the luxury?

 

[Newbieatlife]

Do they pay enough premium to justify the luxury?

Nothing more than market rate for the area - doesn't matter to me though its the same old cashflow figures that concern me regardless of the type of property

 

[Moneyman_85]

My ethnic, blue collar tenants in my older Woodridge property have never complained about anything (apart from serious issues like a leak in the hot water tank), take care of the property and are generally "grateful" to have a property they treat as though it is one of their own.


Same here, mine complained about hot water not working after 5 days of cold showers!