Hello All,
I am planning to invest into a property in Blacktown,, either in unit or brand new townhouse,, I have worked out my stats, which indicate that a townhouse worth $400K, is fetching me a rent of approx $480/pw,,,, or lets say $450 in worst situation,, is this an ideal investment area, people say that Blacktown is upcomming suburb,, prices are shooting up,, and more importantly it is still affordable as I do not want to spend more than $400K,, does anyone have any suggestions on this,, or any ideas,,,, I have looked around suburbs such as seven Hills, or Quakers Hill, but for the price rent ratio, this seems to be ideal, plus it is self contained suburb,,,,, any ideas peps, abt this investment,,,,,,,,,,,,,,
Hi,
I have also considered looking in the Blacktown area.
What is the breakdown of the deal you looking at and how is the cash flow?
Regards,
RobbieIf the prices of the unit versus the brand new townhouse are the same, and the rents are the same, the demand for them on the rental market is the same, and the locations are similar, absolutely go for the brand new townhouse. It will not be subject to body corporate fees, and also you'll be able to claim depreciation your tax return
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Hello Robbie,,
Sorry mate I was away on longweekend so could not respond you back soon,, Mate the stats that I am looking at is near new units are around $300K, mark and the rental return is around $380/pw,,, and Brand new townhouses and villas are around $380 -400K mark,, returning rent of around $450 to $480/pw,,,,,,,,,, Townhouses have bit less rental ratio compared to units,, but than low strata,,, and brand new property are also on menu,,,,,, But I have done quite a lot of research around Sydney,, and Blacktown seems the place for me,,Hello Peps,,
Any thoughts on above,,, also if you have deposit of 10 to 20% try to apply those to above figures and the property will be nearly neutral geared,,, any suggestions peps,,,,,,,,,I think the proximity of Blacktown being close to M4 and M7 also helps,,,,,, also the new water world is comming in prospect,, and they are injecting around another 800K into Blacktown transport system,, to make it more easy,,,,, all this being added up, and if you look at council's website they are proposing to become a regional city,,,, in next few years, add all that up,,, sounds like a good deal,,, any ideas,, if anyone have,,,,,,,,,,,Precisely what is your question? Are you asking us if Blacktown is a good idea? Or are you happy with your decision on Blacktown and just want our opinion on which property to go with?
If you want my own personal opinion, I personally have a preference to buy property that I can, if necessary, drive to on short notice (eg after work if there is some drama that I want to evaluate for myself). I am not yet at the point where I have opted to buy interstate. Since I live in VIC, Blacktown is currently outside of my strategy. That said, I spent some time living and working in Sydney last year and was watching Blacktown and Seven Hills with great interest. If I lived in Sydney I absolutely would be investing in Blacktown. You have identified some key indicators that Blacktown is a great place to invest. You have done your homework. You know it is a good decision. Have confidence in your own research. Do it !
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Hi desilucky,
Once you've done all the research, and has made up your mind, and you're 100% comfortable with it, go for it.
Don't ask other people's opinion as if you still need affirmation. What are you going to do if someone here pipes up and said, "No, it's not a good place to invest."? Are you going to back out and throw everything you've learned out the window?
The strategy, hon, is to do all the research and then back it up. If you are still asking for other people's opinion, then something is not quite right.
Blacktown is a great suburb, there's a lot of promise. Personally I won't buy there, only because like JacM, it's outside of my investing parameter. For no other derogatory reason.
Good luck and take good care.
Angel
What tools/methods do you use to research a suburb?
The things I came off the top of my head were: walking around the area, checking public transport, shops, entertainment and avaliability of jobs, checking upcoming developments, checking zoning on the area you want to invest in… medium house prices, medium rents..
Have I missed anything?Hi Larry,
You're a good student. You've done well. Over analysing can also be a deal breaker. It causes paralysis. Whatever you do, there is bound to be an amount of risk.
The important thing is base your decision on sound investment strategy and always, always have an EXIT STRATEGY.
Bless you.
Angel
I bought my PPOR in Seven Hills at the end of 2009 and I feel it was a great choice for me. The area is definitely up and coming, new AFL team is based down the road, as well as a new cricket team and plenty of new transport facilities proposed for the Blacktown area.
I would go for the townhouse as well, mainly for the lower strata fees. However make sure you do find one in a good area, there is a high crime ratio in the western suburbs as I am sure you are aware of. One of the reasons the woman sold the place I got was because it was broken into and she got nervous in the area, there were other reasons, but I don't think she was ever too comfortable in the area.
Thanks guys,,
You have helped me making my decision firm,,,, I am up with blacktown,, thanks guys,,,,,,, I think its a good start,,,,,,,,,,,infact a kickstart,,, for investment,,,,,,,,,,Remember to pop back in and let us know what you bought !
Also remember once you have bought, get a Quantity Surveyor to do a depreciation schedule for you which you can then give to your accountant. It will result in tax refunds for the next few years if you've bought something pretty new!
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Thanks JacM,,
Appreciate your assistance,,, I will be on this blog for ever now,, and try to assist other people,,, if I have knowledge abt the forum they are talking abt,,, and thanks heaps for your input,,, you have been great,, May god bless u, and all ur dreams come true,,,,
Your True Well Wisher,,,,,,,,,,,,Let everyone rise in this bloody property market,,,, may it be investor,, or First home buyer,,,, or a portfolio investor,,,, good luck to all
Hi Desilucky,
Read you private message.
Angel
G'day Angel,,
Read you,, private msg,, just bit confused,,love??Scroll to the top right corner of the screen. Click on "My InBox".
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Good:Very affordable houses at $371000 med prices. Ana growth sits at 7% for units. Vacancy rate is ultra tight 1.1%, according to sqms December data. Rent yield is good at 6% for units. Heathly sales turn over 394 for units.
Bad: Quarter growth is pretty flat at 3 % for units. Average Anaual growth is pretty average at 7% for units.
stock on the market is up 19% according to sqm hinting at over supply. Average vendor discounting is quite high at -5% 4 units.
Unemployment is on the up rising from 6.9% 2005 to 8.4% in 2009% according to abs.
Med price for units fell over -1% the past year.Good luck.
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