Wondering, for people in Sydney mainly, what the issues are with areas such as Lethbridge Park, Willmot, Shalvey etc. I know they are out west and have some crime, but overall what is the feel for investing in the area.
They are great value, obviously for a reason, and yields are decent.
Any comments appreciated.
Hi and welcome to the forum
I don't know the specifics of those suburbs but there are many investors on this forum with properties in West Syd.
Yes, the socioeconomic situation isn't the greatest but as you've mentioned – the buy in is relatively low (compared to other parts of Syd) and the yields are quite good. I'd be looking for something with value add potential. Perhaps something where you can generate a second income stream through a granny flat, etc.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
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There are good and not so good pockets of the Mt Druitt area. I have a property in Hebersham. Bought it for $230k November 2010 – it is a small 4 bedder. We repainted, got new flooring and did a big make over of the backyard and the rent appraisal went forom $330 a week to the $380 that we got from day 1. Had a tenant move in day after settlement. She is a single mum with 4 kids and our house is kept in an immaculate condition. She looks after it and although she has constantly been a week behind in rent, we think that is fine because our house looks great. We dont want her to leave because i think it would be worse to gamble with getting a new tenant who may always be ahead in rent but could very well have a drug lab happening in the garage.
There are good and bad in all areas and whilst these areas havea stigma attached, there are some hard working individuals and families who live there who simply need a place to live.
There are parts of lethbridge park i wouldnt buy in and i also wouldnt buy in emerton. I spent the first 4 years of my life in EMerton and my mum worked at the TAB there for 15 years and I dont like the area at all.
hebersham is closer to Plumpton and Oakhurst which are decent areas with more home owners and generally 'better areas'. Hebersham is closer to the M7 and large shopping centre is being built there and the median house price is about $40k higher than Shalvey, lethbridge park etc.
I would recommend you view the property before you buy in these areas as you could be buying across the road from an oval or reserve where at night the youth come out to play and you wouldnt walk around at night without a bullet proof vest.
And yes, I have lived there, have family that live there and i am not overexaggerated. Bored youth and high drug and alcohol intake does not make for a safe environment after dark.
Have fun with your search!
As Goldies said- there are good and bad parts.
You really need to be on the ground looking. You can't see things on the internet.
You need to be aware of the difference in the suburbs. One house may look cheap compared to another but it's suburb and even street will make a difference. Look at the number of private owners VS housing commission houses in the street.The hype with investors at the moment will drive prices up (in my opinion). The high yields are very attractive to investors. And as yields go up renters will see value in buying also.
There's money to be had, you just need to do your homework. It's not just a matter of buying any house and making money.
Don't limit yourself to Sydney. There's a lot better value around Australia with FAR better rent returns.
PISTORE wrote:Don't limit yourself to Sydney. There's a lot better value around Australia with FAR better rent returns.Yes you can get better yields but at what expense? CG???
I like to have both yield and CG. I believe Sydney has that.
I don't believe you have to trade off Capital gain for income. You just need to find locations that have both. Sydney doesn't have Billions in infrastructure and Government Spending and nor does it have the same % in population growth many other locations have in Australia.
Your dollar goes a lot further in many other locations than it does in Sydney. You can buy a new 4bed home for the same price that you would buy an older unit in Sydney, and the older unit won't give you the same growth as what a well positioned house will.PISTORE wrote:I don't believe you have to trade off Capital gain for income. You just need to find locations that have both. Sydney doesn't have Billions in infrastructure and Government Spending and nor does it have the same % in population growth many other locations have in Australia.
Your dollar goes a lot further in many other locations than it does in Sydney. You can buy a new 4bed home for the same price that you would buy an older unit in Sydney, and the older unit won't give you the same growth as what a well positioned house will.That's true. It's all about research. I don't own many properties outside Sydney so haven't done extensive research.
Yes I agree you money goes a lot further anywhere outside Sydney. But newer/bigger does not automatically mean better/same growth. Who says a well positioned new home will give you the same CG? Lots of variables here. Some will, some won't. I think it's a bit naive saying an older unit won't give you the same growth as a new house.Care to elaborate on some possible areas that fit the high yield/high CG model?
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