All Topics / Help Needed! / Choices….Choices…Choices….

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  • Profile photo of homersydhomersyd
    Participant
    @homersyd
    Join Date: 2010
    Post Count: 31
    May 27, 2011 - 1:21 am

    Hi all,

    I’m looking at my 2nd IP and currently the choice is boiled down to:

    1. An apartment at Wolli creek
    + with views to water/airport
    + split level, modern
    + 2beds2bath
    + 4.7% pa gross return

    – Potential noise from airport/highway (at a distance)
    – Above average price range for the area

    2. An apartment on the lower northshore
    + with HUGE terrace
    + Better suburb (northshore…)
    + Below average price range for the area
    + 5.35% pa gross return

    – Right on pacific highway (noisy)

    Which would you invest in??

    Thanks

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856
    May 27, 2011 - 4:49 am

    Both sites are subject to some noise – it becomes a bit of a trade-off as to which property will give the better growth over time. Over the last few years there has been substantial growth in the south esp around Tempe/Mascot etc so you'll need to consider whether there is more growth to be gained in the short term down south or better buying northside.

    PM me for some more insights.

    SNM

    Profile photo of Mick CMick C
    Participant
    @shape
    Join Date: 2010
    Post Count: 1,099
    May 27, 2011 - 6:26 am

    homersyd – Welcome to the forum.

    The 1st one doesn’t stack up; I been looking at south Sydney for a while because it’s so close to the CBD…but just look at Rockdale and the new apartments – they have gone down in value because it’s over priced, they expected the rent to be similar to the CBD…but were they so wrong!

    1. Views of Airport isn’t a seller for me…
    2. 4.7% GROSS rental is low…after all expenses are paid with strata – it be around 2.8-3.3% Net return ( depending how much strata is?)
    3. If it’s a unit it should give a MIN return of 4.5% NET … because there wont be much capital growth to rely on,

    Apartment 2 on the another hand, sounds more promising.

    North shore attracts high income earners and working professional = better potential for growth and higher yields.
    Now when you say it’s on a highway…is it DIRECTLY on a highway and is access in and out ok for cars? or is there space to work with for the cars

    Lastly it be beneficial to post up the address ( or PM/email me if you wish); because every deal is different…there are small pockets within each suburb which are a great buy ( ie lower strata? better st) — i could email you a property report on both properties if you wish.

    Regards
    Michael

    Mick C | Shape Home Loans
    http://www.shapehomeloans.com.au/
    Email Me | Phone Me

    Same Banks. Better Rates. Served With a Passion.

Viewing 3 posts - 1 through 3 (of 3 total)

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