Hello All,
I just bought a 2 bed apartment in Mt Druitt opposite the Westfield shopping center and train station, the unit is 135 m/2 and cost $189,000.00 and renting for $310,00 per week I put 50k in from my super fund and borrowed the rest using an offset account … it seems this area has some great stuff for under 240k with great rental returns.
This area was my choice after exploring Bankstown, Blacktown and Merrylands within 200 meters from a train line and major shopping centre plus Sydney is now a better buy than Queensland that appears to be in a boom/bust situation.
D
Hi D
Good stuff,
I would looking at these too. $150,000 units that rent for $210 pw. Not bad.Lakemba is another area.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Sounds like a good buy D even though the area is a little rough around the edges, esp around 'blood alley' but areas do change over time.
Plenty of other good spots even slightly further afield esp around Kingswood/Penrith. Still on the rail line & access to major shopping centres.
Yes agreed, what I did was spend quite a lot of time at the Westfield shopping center to judge the type of people that lived there, and I liked what I saw at Mt Druitt the best but agree still some rough areas to me country town population v's city town population.
D
yes sounds good, though dont expect much Cap growth over the next 10yrs, have you been to neighbouring housing commission suburbs like bidwell whalan park etc, fxck me. Dont forget your tennant reference checks. As far as changing overtime, I dont see it, whats the driver for change unless all the Gov housing gets shifted to the Moon . It will always be bumtown.
D, did you see the articles in SMH over the weekend with regards to rentals v sales prices in the area? (I'm sure you didn't need a journo to tell you though).
Hi SNM and EH
Years ago my husband owned a property in Proserpine which took 2.5 years to sell so no more country towns for us …
Robert Kiyosaki talks about cash flow and thats our strategy …
Even if the property does not go up one cent in the next 10 years I will pay it off using rent and tax and my offset account so i'm in front … yes not the sexiest area but beats Tasmania haha and it's on the rail line from the Blue Mountains so lets see how much money I will make over the next 10 years compared to yr strategy.
Danielle. oh rents in outer Sydney to rise by 20% … yahoo thank you.
PS … I just bought 180k worth of silver so not all property is my focus and no I won't discuss my mineral investing strategies.
hi wealth4life that sounds great! I actually live near mt druitt and know the area you are talking about. Is it the units off luxford rd infront of KFC, is it the new or old units that you have bought? I'm all for positive CF but what happens when rates head upwards to 7-8%. Will your unit still be positive cf? Or have you locked yourself into a good rate? That's what im always confused about how will it still be positive when rates go up- does it mean you need to have a large deposit to have a good buffer? Approx how much more positive a week do you get from the rent $50-$100. What happens if mt..druitt growth remains flat or worse drops .For eg say you make $100x 52weeks = $5200 pa positive cashflow but what if price drop like it did 6months to june 09 -10% growth of median price. http://www.homepriceguide.com.au/snapshot/price/index.cfm?action=view&source=apm
Trust me i love positive cashflow properties but im scared of the negative or flat growth. Becasue if i make extra $50 on top but lose $15,000 in gorwth per year because of the area, then is it still positive because you are still getting abit more on the side but in the bigger picture you are losing in growthIt will be great to hear from you wealth4life, great post
OK so here's the go from inside my mind.
I don't think about growth I think about cash flow.
I do my calculations on the property not going up in price at all.
If I own a 200k investment and the cash flow is paying out all the debt and not me then in effect some one is paying me 200k over time.
If the property goes up in price then this is a bonus, and if it doesn't I'm still in front because I'm not paying for it.
They are predicting that rents in outer west Sydney especially will rise by 20% due to a lack of stock and the coming downturn from TFHG … if it does my cash will be faster and I am getting rich quicker.
2 years ago properties in this block sold for $315,000.00 so I figure 180 is rock bottom … lets see … but I'm looking at another as I write this, I'm buying cheap stock with over 9.5% + ROI
D
i am probably missing something but if you own a 200k property for 10yrs say and there is no growth but all your interest and expenses are paid by rent dont you still have the same 2ook property and a loan for the amount you started 10 yrs ago. Then add buy sell /costs etc and that eats a big hole in your say 50 bucks a week you have left over with your PCF property.
wealth4life,
great pickup, just been looking at apartments in in 150-200k and the yeilds are impressive.
I'm was on the hunt for a development block in regional VIC (specifically a regional town south of Bendigo), but I've never looked at NSW metro before; time to look I think!
Cheers
Event Horizon wrote:i am probably missing something but if you own a 200k property for 10yrs say and there is no growth but all your interest and expenses are paid by rent dont you still have the same 2ook property and a loan for the amount you started 10 yrs ago. Then add buy sell /costs etc and that eats a big hole in your say 50 bucks a week you have left over with your PCF property.You missed part of D's script EH, tenant is paying her debt ie P&I not just I (or so I assume from reading the post)
congratulations on your purchase !, I bought a 1000m2 block in mt druitt 11 years ago for $110000, sub divided it and built a duplex on the back block. EVERYONE told me that it was a bad area and I will never get the return. It has proved to be one of the best investments i have ever made, the only regret i have is not buying 10 of these properties at the time !!!
You will find that although it might be considered a “bad area” your unit will very rarely be vacant, good work
Hi,
Just reviving an old thread.
Are there any more opportunities like this?? i understand this thread is 6 months old, I wonder if its too late to get onto this bandwagon now. I have been told to have a look at this area, because although it is not the best suburbs in sydney, it should do well in the next 5-10 year time frame.
What i am looking for is maybe a small housing commission house, with some land, maybe 600-700sqs. I wonder if i can get it for around the 250k price range. and make it a positive CF by doing some cosmetic reno work.
Just a thought, and would love any input anyone might have.Hi TCL
I thought you like only investing Unilodge apartment
I would prefer investing CF house in western/south west sydney rather than unilodge… that is just my humble opinion.
You can find the property that is large enough to build the duplex in the future.. check with the council thoughI have a mixture. Combination fry noodles for me!!!
I have for units n houses in Brisbane, and one unit in Marchoochydore. Now I am looking at places in Sydney, unilodge is student, I want a few in west Sydney, looking at rural and looking at NZ soon. And maybe if I can het my head around all the hoops they want me to jump thru, USA investing.
Gee Wealth you must be really crying buckets not seeing a CG. Uh yeah right. Nice work making around $40k in 6 mths!
D
DWolfe | www.homestagers.com.au
http://www.homestagers.com.au
Email MeHello Wolfeeee
Some people say I am negative but I prefer to say that I am an intelligent investor who hates BS …
I also bought a 54 m/2 one bedder in Wahroonga for $225k and will rent it for $380,00 I dropped $100k in from my family trust from a stock market profit we made in November … the universe joins the dots …
OK Wolfe lets go find the BSers
Have a wonderful year … my goal is to purchase 8 PCF properties and 2 motel complexes for conversion.
Hello Wealth or should it now be Wealthy?
Using your brain is not negative, many people probably envy your ability to make decisions and take action. Sounds like you have many pretty ponies in your stalls.
I'll be there with you Wealth, making money while other people stand back and let me…and wonder why I am so "lucky" and how it all just seems "so risky" because "what if?"
May you also have a wonderful year, we will compare notes at the end, I like your goal. Mine is to have at least 2 developments on the go (sounds easy but..) and to collect at least 4 other PCF properties. May we both prosper while the BSers stand around scratching their heads (or other parts)
BTW it is Wolfey but with a y lol!
D
DWolfe | www.homestagers.com.au
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