Hi All,
Am new to property investing. Just wondering if anybody can kindly advise on capital growth prospects for
Voyager Point in Sydney. Is $ 715 K for a 3 bedroom 2 baths double garage house on 500 sq m reasonable?Thanks for your help.
yuchez
I am new to investing as well, I wouldn’t invest in that area for a first investment. If you have that much to spend you could buy 2 properties for around $350k in a lower risk area. There isn’t much around voyager point. The closest shop in walking distance would be over the footbridge to east hills ( where I grew up) that is also the closest train station too.
Are you familiar with the area?
Voyager point in my opinion is over priced for where it is located.
Thanks, Brian.
You’re right ,Voyager Point seems overpriced compared to surrounding areas. I guess the only thing going for it is proximity to Holsworthy Barracks. This particular property is a Defense Housing property with guaranteed rent of $ 635 per week ( reviewed annually) for nine years. They look after management and maintenance for a rather hefty fee of 16.5 %. Some of the real estate sites are predicting 8 % growth for the area, but I’m wondering if it’s peaked and is about to flatline.I think the growth for that area is 6% which isn’t much compared to 15mins away in Liverpool where growth is around 11%
16.5% is pretty hefty for management fees. If you can try and negotiate the management fees it might be worth it but 16.5% of $635 is $104.77. $530/wk rent on a $715k property would be negative geared pretty hard. IMHO I don’t think it would be a good investment unless you are looking for a negative geared property and can afford to put money towards the property each week.
Heavily negative geared at the peak of a massive boom – what does your head say about the risk calculation?
DHA won’t negotiate on their management fees.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Thanks for the great advice, Brian & Corey.
As Brian mentioned, I’ve also been thinking of getting smaller properties in lesser risk areas. St Mary’s & Blacktown appear to have reasonable growth and yield for 2 bedroom units. Are these areas still good buys? Or have they flatlined? Are there better ones in NSW?
If the pundits are right, we might still have two rate cuts before rates start to rise. With the drop in commodity prices and central banks everywhere trying to talk their currencies down and lower rates, we might( ?) still have 2 or 3 years of low interest rates. I guess I’m wondering if the boom in Sydney & Melbourne still has a ways to go, or is it too late to catch the train?
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