Investment around Sydney's western suburbs

Viewing 6 posts - 1 through 6 (of 6 total)

rgoh
Participant
@rgoh
Join Date: 2015
Post Count: 1
March 7, 2015 - 11:52 am
Hi all,
I’m looking at investing around the areas within St Marys, Penrith, Werrington.
The current vacancy rate for St Marys is apparently 3.09% (http://www.realestateinvestar.com.au/Property/st+marys), higher than both Penrith and Werrington which sits at 2.41% and 2.22%.
Looking at these % rates, should I be worried of not being able to find a tenant quickly (especially in St Marys)?
Thanks in advance!
Catalyst
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@catalyst
Join Date: 2008
Post Count: 1,404
March 9, 2015 - 10:51 pm
Why are you looking at those areas now? Vacancy rates are only part of your problem. Don’t get me wrong I love Western Sydney, and this boom has been kind to me.
We are at the peak of the boom. You are unlikely to get any capital growth for 10 years and may even get some negative growth in the next 5 years.
Not a good time to be buying there IMHO!
Corey Batt
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@cjaysa
Join Date: 2012
Post Count: 1,010
March 10, 2015 - 4:20 pm
GWS rents are softening slightly from increased supply, but it’s not VERY difficult at the moment. In saying that, if you don’t have constant pressure it’s more difficult to increase rents consistantly.
Catalyst has touched on something important that I think a lot of people need to take into account – GWS and Sydney in general has just gone through a massive boom, in some areas hitting 35% CG in the last two years. With yields in the doldrums and prices at new highs, you have to be careful in modelling where you think your investment will track in the medium term and whether there are alternative markets you could be investing in with ‘safer’ returns.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
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Investment Focused Finance Strategist - servicing Australia-wide
Modernity Investing
Participant
@mark-coburn
Join Date: 2006
Post Count: 181
March 11, 2015 - 8:23 am
rgoh wrote:
Hi all,
I’m looking at investing around the areas within St Marys, Penrith, Werrington.
The current vacancy rate for St Marys is apparently 3.09% (http://www.realestateinvestar.com.au/Property/st+marys), higher than both Penrith and Werrington which sits at 2.41% and 2.22%.
Looking at these % rates, should I be worried of not being able to find a tenant quickly (especially in St Marys)?
Thanks in advance!
The time to be buying into western Sydney was 2 years ago, if you buying in now you are getting in at the top of the price cycle.
You need to careful if this is what you actually want to do. Often values soften in the years after the market tops and if you need to trade you could get caught with negative equity. This has happen to a lot of people buying into Sydney post 1992 and post 2003. In some cases post the market reaching it’s top in 2003 values did increase above purchase levels until 2011-2012. That can be a long time to wait if you need to get out.
PM me for an article I wrote for Your Investment Property magazine on how to select future growth areas to invest into.
- This reply was modified 9 years, 9 months ago by Modernity Investing. Reason: typo
Modernity Investing
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DeanCollins
Participant
@deancollins
Join Date: 2015
Post Count: 376
March 13, 2015 - 6:54 am
IS 3% VACANCY HIGH……DOESNT SEEM THAT HIGH TO ME?
eg that’s only a little over 1 week a year. I build that into my regular cashflow model.
Catalyst
Participant
@catalyst
Join Date: 2008
Post Count: 1,404
March 13, 2015 - 9:35 pm
Not too high but high compared to Western Sydney in the past.