Im not a buyer's agent so perhaps investing in a BA is the way to go for you. A lot of investor activity (based on the loans I have written) has been in the western suburbs Seven Hills, Blacktown, Quakers Hill and South West areas as well. There are existing houses that don't need renos, and provide solid yields. Sounds like you should be looking at properties that you can start developing in a few years when you have the time. This may mean properties with good land size and/or zoning. There are plenty of properties that fit this category. For example, a member on the forum just purchased a property that has been converted to 2 dwellings on each side of the property. The dwelling is located right near the front of the property providing an opportunity to bang something on in the back. 

It comes down to your IP strategy – sounds like you want a mix of good CG with stable rent? Make sure you do the numbers but one possible strategy is to look at larger blocks of land in the west/south west that are showing good rental yields and have the potential to develop by either subdividing and selling the land in the back or putting a GF or a second dwelling in the back. These are ways to get decent CG on the property but you need to do plenty of homework. Again comes down to what type of a strategy and IP you are after.

Some folks just want to land bank, get the organic CG whilst having decent cashflow and there is no problem with that. Horses for courses. I would personally would stay away from units though due to their limitations in CG. In my personal portfolio I have only experienced strong CG on houses but then again I have developed most of the properties.

I have a friend who is an agent in Bankstown – I had coffee with him a few weeks back and  he said that there are no buyers in Bankstown at all but there is a massive shortage of rental properties – the rental yields are also quite good so I agree with the above post. 

Westpac can go up to 95% but the max loan amount is $500k. What is the loan amount?

Regards

Shahin

You need to run through the numbers and see which fits in with your strategy. Marrickville is going gangbusters. I personally have a semi in the marrickville and the capital growth has been fantastic. If you are chasing rentals yields then its not so good. I have just worked on a loan for an applicant who has purchased a house in Quakers Hill (under his SMSF) for $280k and then rental is $360 per week. I would look at areas around Mount Druitt which have the benefits of the shopping centre, train, hospital, etc. The only problem I have with units is the strata. They keep rising and you have no control over this. 

Also re finance – if your investment strategy is aggressive (i.e. you want to purchase another property within the next 12-24 months) then you may want to consider borrowing as much as possible (finance permitting) and leaving cash aside as a deposit for the next purchase. 

Whatever you do – make sure you look at the numbers. 

Regards

Shahin

Difficult to dispute yes – impossible no. We have successfully convinced the valuer to change the valuation but it wasn't by a huge amount. Also you dont need to wait 6 months. E.g you do a massive reno on the property and it takes you 3 months then there is no reason why you cannot revalue it 3 months later. I have done this with 2 of my properties. One was a PPOR and the other was an IP.

Part of the reason you fix rates is due to risk management and the other part relates to your IP strategy. No one can give you the right answer unless they spend at least an hour with understanding your risk profile which includes current and future goals. Speak to your banker or broker and ensure that they ask you plenty of questions before giving you a definite answer.

Better yet go for Torrens title….

$250-$300. Anything over this amount is too expensive and you should shop around.

There are a lot of pitfalls, things people would do differently, etc. Best to start speaking to a few investors who have done this sort of work and get their feedback. They can comment on things to look out for, hidden costs that were not evident when doing original calculations and feedback on local builders, excavators, etc.