Hi Guys, considering a good sized split 2 bedder in Ultimo with car space. Its a older block, and the unit needs a bit of TLC. At least new lights, kitchen, paint, bathroom tiles, new taps, kitchen floor coverings.. built in the 80's by Meriton apparently. The structure looks good , and certainly doesnt exhibit the horrible quality of todays Meriton dwellings.
Fairly easy, simple straight forward stuff. Not noisy, away from a main road, near the new pool, close to transport, walking distance to CBD and Darling Harbour. Building is in a complex of 16, but has about 195 units in the larger complex, low rise (3 floors)
Current rental prices look good 5+% and the property has been on the market a while, I think the property has good scope for some more value to be added with a small outlay. I lived in thsi area just near this property for 4 years and loved it. Close to uni, shops, cbd, transport, school, day care, cafes, entertainment..
What do you guys think? I know its a area thats occupied alot by renters and caters to the student accomodation market but I feel I can market this property to the professional couple or professional single, potentially small family.
Would really value your input for my first IP purchase
Thanks
Krisultimo is a good little suburb which HAS shown above avg yield (due to uni) and decent growth in the city area. Just be careful as its demographic for tenants is generally still a pretty young age bracket, and you will find yields will still need to stay at somewhat affordable levels.Look at the strata levys and also sinking fund, if theres not heaps of money in the sinking fund and the place looks like it needs a bit of work then you need to account anywhere from 4-8,000 dollars which you might be hit up for in the years to follow.
I bought my first investment property in sydney, in macquarie park, and it has performed better then lots of places in sydney due to the new rail line which is nearly finished! Even with this development hte growth has been way below average for the rest of australia!!
If it is a long term investment then you will be ok, but don't expect to get massive amount of growth straight away as there is still a general affordability issue in sydney – but prices are still holding steady despite this.
it is also worth looking at value purchases in melbourne and south east qld you might consider some better oppurtunities.
Re the "affordability" issue……
Sydney is not Australia's Sydney but the whole world's. Overseas buyers are cashed up and don't give a damn shit about interest rates and local affordability…A friend of mine will come over in a few weeks with an overseas buyer. Won't spend too much this time—ONLY 2 millions in cash. and 2 millions is just peanuts for him since he makes over 20 million on average a year.Cheers
AO
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