After spending the last 2 years in sunny melbourne, enjoying the restaurants, theatre and low rents. My partner and I have decided its time to move back to Sydney.
I remember years ago you first had to narrow down your suburbs so you were not overwhelmed with responses.
We have set a target weekly rent of $600pw for a decent 2br unit. We have a net of about 10km radius of sydney (Chatswood, Bondi Junction, Balmain). And I would estimate (exluding the dodgy areas) we get a return of about 10-20 potential rents.
We then contact the agent and 15/20 respond with “applications have been taken”.
I asked for advice about how to secure something (as Im only in Syd 3 days a week and Im supposed to be working). Agents response was, dont bother with open houses as you are a 1/50 chance of getting it. You need to book an appointment and book it during the week and fill in the application with a deposit on the spot.
Then if Im lucky I get something.
Wow! This is wonderful news for all the investors (and Im one of them) but it is certainly hell for the renter (which Im also one!!).
Mathew
http://www.arrttt.com
Custom Oil PortraitsI hit the pavement last Sat and inspected 4 units. 2 were really good for their rental ask. This was also reflected with 20+ people all inspecting it.
Out of the 4 I put in 3 applications. Out of the 3 I was 1st place on 2.
But on the same day I happened across a recently renovated 2br unit for sale at a good price. So I bought it instead with the condition I can move in prior to settlement!
It will probably cost an extra $130 a week compared to renting, but the quality is much much better!
Mathew
http://www.arrttt.com
Custom Oil PortraitsGood on you Mathew …..
What do you see of the future of where you have invested ?
Hi Matthew
I love your street savvy, Matt. My wife & I are developers with an extensive portfolio of our own rentals… we’re moving to Brisbane and have just rented a house which we were very tempted to buy, but looked at the opportunity cost of what we could do with the equity. Usually it’s a no brainer – rent for yourself and use your capital to buy (or in my case build) investment properties because you know how to pick them, but the rents are going up (and I love it!)
Do you mind sharing the basic info re the suburb you bought in and what it would realistically rent for?
Cheers
GregHi Greg and Mr Purse,
Chatswood is a nice, low crime suburb about 5 train stops north of syd. Its a main train stop and there are lots of high rise residential developments going up.It also has a pretty big westfield. It is currently undergoing a revamp.
Demographically its a strong asian town as well as elderly who still own their beautiful 1920’s houses on large plots of land (these are usually $1M+).
I did not use a lot of stats for this purchase as its a personal one to live it so it had to feel right. I purchased into a low rise (8 story) complex. As the new units come onto market I dont think this will impact my unit as they are $600k + (mine was 470k) so its a different customer band.
Its a strong suburb with money so I expect my unit growth will be above the sydney suburbs average.
Yes I know I am now limited as I have just ploughed my money into a kind of liability. But it is personal reasons to own a place. And also I think you get a better outcome now if you can afford to buy rather than rent. The rent stock is low and what comes up is pretty average. As the demand is high you cannot even get the landlord to touch it up for you.
I was lucky as the place I bought has just been fully renovated. There are just some minor changes I need to make and its home sweet home.
If you are thinking of investing in this area. I would:
1. Get growth stats over the last 10 years to confirm you are happy with it.
2. Get median values to confirm it meets the type of renter you want
3. When you find a place, get a residex recent sales report on it so you can set the right bid price.The area I usually invest in NSW is Narellan, Mt Annon, Camden way. The right suburb in that area has worked well for me over the last 10ish years.
Hope this info helps, not that statistical sadly.
Mathew
http://www.arrttt.com
Custom Oil Portraits
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