If you are looking for a good property purchase you must look outside of Sydney. The prices are too high, the rental return poor, running at a loss is pointless, and future short to medium term growth uncertain. Coastal areas are also fairly expensive, which is why I started looking inland. After travelling through Bathurst and Orange, which are very attractive country towns which serve a large regional community, I found that there is a lot happening out there. Orange airport has expanded and has Boing 737's flying out of it. Block prices are around $170K. Bathurst has similar prices, and is having another racetrack built in the next two years. Travelling back we went through Millthorpe, which is a beautiful little town. Much better value can be found in Blayney, which is closer to Bathurst. There are some bargain buys in the town, with some blocks of land way less than $100K, and houses from $200K. A lot of the houses will provide a positive cashflow. The town has a large diversified economy, from petfood manufacture, cold storage, copper dewatering, mining, cattle handling yard, container handling, wind turbines, ANL composting, and numerous other small businesses. I was hugely Impressed. Only twenty minutes or so from Bathurst and Orange, it is centrally located between the two, and seems to have missed out on the huge property price growth experienced everywhere else. But I will tell you the deciding factor which has caused me to buy a couple of properties here lately. Eight kilometres outside town is one of the largest bodies of gold found in Australia. There is a lot of hush hush stuff going on in the background, but from what I hear, the process is well advanced, and about a year away from starting. With the gold price likely to rise substantially in the next couple of years when the stock market correction happens, gold mining activity is going to explode. Big gains are made in purchasing properties which are undervalued, and have a significant stimulating factor which pushes the demand up considerably. I strongly recommend you have a look online, or better still go for a drive out there. It is only two and a half hours from Sydney. It is the best buying opportunity which I have seen for a long time. Happy Investing.
The best buy right now I personally believe in Sydney is the below suburbs. 1) Tregear 2) Willmot 3) Shalvey 4) St Marys 5) Colyton 6) Mt Druitt Anywhere near Marsden Park business park.
You'd better be ready to be a slumlord with a list like that. It may help to (re)watch the series "Housos" on what tenants in these areas may be like Housos on SBS
You might want to do some research before you make comments like that. I've made more than 1 million dollars over 3 houses in those areas and every month its still growing by an exponential margin. (i.e) The month of April vs May growth just on real estate averages have increased between $5k and $10k each house. These houses used to be like $200k. Now they range from $500k to over $700k. Lets just say I bought at the bottom range and have made an motsa with these properties. Still plenty of room left in them. Do some research as to why they are growing and I'm sure you will see the light at the end of the tunnel rather than making un-informed comments.
BTW like I've said previously I get less headaches with renters in those areas than I do in Parramatta, Wentworth Point, Ryde and Pymble. They actually pay on time and dont complain about each and every thing. The renters in Ryde/Pymble think they are living inside Versace hotel. LOL
I do. I've seen the worst of the area - you need to have spent time at the cop shop or ED to see the worst of an area. My family have had a business in the area for the last 20 years (my folks still live nearby) and I can tell you industrial in the area has done great. However, the public housing estate is what it is and unless they move on, the area will still be stigmatised and be seen (and is) a disadvantaged area. The area has had its dash and unless you have a niche (such as NRAS, industrial, etc), a decent return will be hard to get in the near future from that area
If I had a dollar every time I head this I'd have made millions. There was once a time Mount Druitt and St Marys was stigmatised exactly the same way Shalvey is. When I bought my very first place in Mt Druitt only 4 years ago now for $269K EVERYONE and let me tell you EVERYONE i talked to was saying stuff like - why buy there no-one would want to live there - why do you want to buy in areas with housing and junkies - you will never get capital gains or good tenants there - blah blah blah Guess what? I sold that house 5 months ago for $696k. I made over $400k in less than 4 years on a Suburb that was stigmatized exactly like that. What people didnt see which I did is the huge amount of growth that was happening, the influx of people and the immigrants moving in that have a strong strong work ethic and are grateful just to be in Australia. They moved into the area because its cheap but with them they brought with them good people that contribute to society. That in term has ripple effects and now St Marys and Mount Druitt are pretty damn decent areas - I was just there last weekend checking out my other investments. Hence in turn the areas became more and more changing for the better. Heck now I see Mercedes C63s, BMW M4s and other luxury cars parked out the front of numerous houses there. I would never have seen this 4 years ago. What I am saying is do some research and you WILL see the potential of the area. That is why I said there is still plenty of room to grow. There is no doubt once Marsden Park business park finishes, M4/M7 Westconnex, New Airport - there is actually billions going into the west in infrastructure and development. Marsden Park alone is 15,000 new jobs on completion as I've said before. Annually growing by average of 5000 jobs. Its going to be 5 times the size of Baulkham Hills Business Park. Shalvey, Tregear, Willmot and all those areas are right next door. I'll be willing to bet these suburbs will continue increasing as they have and in time the people in there will go. Housing is already being moved out in some of those areas and new developments going in there.
Is 4 years enough to know an area properly? Others on this forum who are advocating caution on the area have probably known the area for a lot longer than that Most immigrants in the area (I know quite a few) move on as soon as their income allows it The main drag at St Mary's may have had a mild facelift but there are still a lot of empty shops (especially near the train station). Had dinner there with my Dad about 3 weeks ago - the Thai food there is still pretty ordinary They may be nearby but that can still be a world away - see the difference between Edgecliff and Kings Cross (until recently) For a closer example go to Penrith - people there view the 2770 postcode as the ugly stepchild. My point is that the development may as well be in another world if the population cannot make any use of it. It may and you may make a lot of money but caution is likely wise at this stage. I don't have anything against the area - after all my family has done well from the area but things may have overshot and I'm worried it may get ugly for some
^ Doesnt matter. Prices dont lie. I watch very very closely on how each of my investments perform and these suburbs have performed well for me. Immensely well and I've never been without a tenant nor are they late in payment. Like I said DYOR. If you cant see the upside or potential well you simply cant see it. Not all investors see the same light at the tunnel. I'll continue to follow my strategies as I've actually seen what you can make out there. Its actually allowed me to pay off my PPOR in Castle Hill by selling the Mount Druitt house so I'm cheering I made that investment choice. I'll continue holding the remainders of my investments in those area's and I'm actually looking at one now in Willmot to buy. Low $500k but I can see it going up to $700k in the not too distant future.
As I said to Datto in another post - I think Lakemba, Wiley Park and Greenacre have greater upside than around Mt Druitt (my exact words were the brothers have it over the housos) It's the Marrickville and Newtown of the future.
PM me the address. I'm actually looking at a house right next door to one I already own. I'm thinking of future development actually so I can knock down both and have like 1400sqm to build duplexes or townhouses on them.
Not too familiar with those areas except for the shootings and bikies stuff that recently happened there. I'm not sure if there are any major infrastructure projects equivalent of the airport and Marsden park business park happening around there? Plus the pricepoint of greenacre etc....are already alot higher than the west. So your ROI and yield is going to suck bigtime out there. For me now since my portfolio is big cashflow is probably my number 1 consideration, followed closely by capital growth.
