just wana know what experience anyone has had in investing in so called bad areas were houses are cheaper, In macquarie fields you can buy a decent house for like $230 000k and get rent over $250 a week.There is a housing comission area on one side of macquarie fields and the riots it had a few years ago really gave it a bad name,but iv walked through local shops and talked to some locals and havent heard of any problems.But If you look at house prices and the likely return it looks like one of the best places in sydney to invest because you can have problems with tentants and locals in known good and much more expensive areas cant you.BTW I know there are many areas like macquarie fields which have similar sircumstances i just used mac fields as an example, i would love to hear anyones thoughts or experiences,THANX.
A few factors can help increase the value of "bad suburbs". Here are a couple:
– Surrounding suburbs – if these are good with increasing values chances are people will get priced out and have to come to the "cheaper" suburb – pushing up demand and prices.
– Infrastructure – the more infrastructure an area has the more likely people will want to live there.
– Development and urban renewal planned for the region – help to increase the look of the area.Make sure you insurance is up to date as you will have a higher risk of "runners" and those who are just vindictive and damage things. Not to say this will occur, some tennants in the lower socio areas are more reliable than in other areas, just some are not!
MickWe've done this – we have two units in Osborne Park, WA. For those of you not familiar with it, it's a suburb which in the past was mainly commercial. It still has a lot of warehouses, retail outlets etc in it, but it's so close to the Perth CBD, and surrounded by much more expensive suburbs, that we could see it was worth investing in. Due to its proximity to Perth, its good public transport, etc, it's easy to rent out units there. However, we bought one of the units in a very dodgy group that has extremely poor strata management, which we now wish we hadn't. That was our poor choice though, nothing to do with the merits of the area!
I agree with voyager's comments – these were the reasons we chose to buy in Osborne Park.
Investing ethically is hardly a new concept–for thousands of years Jewish law has dictated that all business investment should support the entire community–but only in the past few decades has that approach caught on among American investors. Unfortunately, throughout most of the 1990s those investors often had to choose from mutual funds that were well-intentioned but offered wilting returns at best. In fact, a majority of so-called socially responsible funds often lagged behind the overall market. property investment
The other factor that comes into play is … how long you wish to keep the property for???
If long term … the economic cycles and time will aid the property capital growth.
Also consider tax deductions and gearing factors …. speak to a good accountant.
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