NSW 850k IP in Quakers Hills

Hi Guys,
Do you think 850k IP house in QH is a good choice ? The only concern is rental returns for us.

 

Hi @skyfall78 what are you wanting to achieve with the investment? I am of the opinion that there are better locations for investment at present, however, that is in relation to my specific goals and criteria.

 

Hi @skyfall

As @Mick Butterfield asked, what are you trying to achieve?

Rental returns are low in Sydney at the moment - property prices have grown significantly, whilst rents have not.

 

Thanks Mick and Sana. Basically I'm trying to invest 850k in property market as a IP.

What I meant by rental returns is... the 850k house in QH gives appro 600pw rental...whereas 650k apartment in wentworthwille gives me 525-575pw rentals.
Does that mean the QH will cause me negative gearing?

I just want to invest...I'm newbie here so please be gentle to my silly points concerns. I'm always happy to learn from your experience

 

Book a complimentary 30 minute chat with Sana and Mona, they'll learn ya!

 

Ahhh.... In that case, I'm not sure it's so smart to buy in Sydney right now. You might make money, but you might not. It might be like 2003-2009 where prices went nowhere, and actually dropped in Western Sydney. Not saying it will definitely drop, but the risk of a downside right now is reasonably high and you'll be tieing up a lot of money in your investment. Be careful.

 

@skyfall78
Read up on the forum, see where Sydney is in the property cycle. Buy here if you must, but it will just depend on what you are trying to do. Also check out the Somersoft forums - wealth of knowledge there and on PC.

 

Hey,

Where is this located in Quakers hill. If its a 3/4 bed with 500+ block and within 500 m of either of the below locations in Quakers hill, would be good for future growth potential. There will be high demand for land in this area in future. Already Schofields/Ponds 500+ lots of land only are selling for around 800k

1. Within 500 m of Quakers hill station both sides( chances of rezoning)
2. Within 1 km of Farnham road shops ( chances of rezoning)
3. Within 500-1KM m of Barnier/Mary immaculate
4. Within 500 m of Aldi Quakers hill
5. Border of Quakers hill/Ponds
6. Within 500m of Quakers hill PS

Also, you can get 600-650 per week rent for a 4 bed house in Quakers hill. Need to go with good rental agencies( dont just look for less management fees)

 

Well you need to ask yourself what are you trying to achieve out of this investment?

Are you looking to draw an income or you have emotional attachment to a certain suburbs?

Investing in general doesn't nessesary need to be property. It could be a combination of a lot of things.

Knowing what you want to achieve is the key.

 

Sounds expensive.

That sounds expensive too

22 Dawn Drive, Seven Hills, NSW 2147 - Property Details
plus Granny flat option @ $120k + $80k reno should yield relatively well.

Anyway, real answer is figure out what you want - and "i want an IP for my retirement" isn't really an acceptable answer - its only a starting point.

 

Hi @skyfall78 ,

Welcome to the forum. I will try to reply to you in simpler terms.

Your aim to invest 850k as IP doesn't make sense. If you MUST spend (not invest) $850k then it is a different story. Otherwise your starting point should be what yield (% of rent per week as a ratio of your borrowing) you want to achieve, or % capital growth per year over 10 years etc., may be useful.

If your max spend capacity on property is 850k, you can acquire 1, 2 or even 3 properties and spread it across different capital cities if you like. Again that will depend on your strategy and risk appetite.

If you aim to buy a property in Sydney for $850k you may end up paying too much for something that's not worth it from a yield or capital appreciation perspective. So the good thing about the current Sydney market is that there is no rush to act in 2-3 weeks. You can use the time to read up on this forum, meet people and ask a lot of questions.

When you are reasonably confident to act, you can still post your thoughts in broad terms and request feedback from the forum/ your advisors and then act. Good luck in your property journey.

 

Not sure about your investment purpose but BTW if you are looking to move in, thats a very good price in Quakers hill you got for a 4 bedder if the land size is 500+