City surrounds: trendy suburbs, how hot are they really?

Hi guys,

Suburbs like Surry Hills and Darlinghurst have been popular for a long time, with the recent boom they have been some of the hottest suburbs.

I am wondering if it might be profitable to purchase a place that is in need of TLC or a full renovation and re-selling it. The biggest risks I see are 1. cost blowouts and 2. The market cooling down.

Assuming a 1 year turn around for loding DA through to finalising reno and putting on market, do you think Sydney will still be hot enough to easily sell a place in these areas, for profit?



Examples:

162 Bourke Street Darlinghurst NSW 2010 - House for Sale #124115182 - realestate.com.au


Thats a place that is in need of a major reno! Its got scope to add a bedroom or two and maybe an extension. Can't see it costing more than 300k + holding costs, and the finished product should hopefully sell well.


16 Ridge Street Surry Hills NSW 2010 - House for Sale #123904766 - realestate.com.au

This one has scope for major reno works and 4 bedders in surry hills are not super common, its also got 2 street access and scope to add a car parking spot.

 

I think the Sydney property will still be hot in one years time. I think it will be, can't say for certain, nobody can.

If you can pick up those properties cheap enough and do most of the work yourself there should be a buck in it. Especially the Bourke St one. That one will scare the pants off any first home buyer lol.

But also remember you'll be up against builders who know how to make a quick buck.

If you got the capital to do it then why not. If the market tanks you can rent it and sell later.

 

Thanks for the advice, the Bourke st one looks like a nightmare doesnt it!
I am very familiar with the building game, thats part of the reason why I prefer work like that . Main disadvantage is that building work in the inner city suburbs really sucks (parking issues, trades overquote, council can be more difficult, etc).

 

I like the way they have even photo shopped the images so you can imaging your stuff in there

Maybe pitched to some out your way datto that want to upgrage ?

 

What sort of money you expect to pay for the Bourke st one?

 

Its gonna depend on the demand for that type of property. It should go for little less than land value considering how much work is involved, but I have no idea if demand for something like that is strong.

 

Is an uprager a crackhead who moves to a nicer property then trashes it?

 

Would it be better to look around the outer city rim. 5 years ago marrickville was tipped to be the next hotspot and came to fruition. What about the campsie, lakema, greenacre pocket. You can be ahead of the pack! Likely a lot of undesirable properties.

Although if you are chasing the ultra premium locale darlinghurt kings cross could be set for a boom with the lock out law drama's going on.
I heard an interesting podcast discussion on the lock out laws being a strategy for property development rather than public safety. (Hope I'm not opening a can of lock out law worms)
How to Avoid the Common Mistakes Entrepreneurs Make ft Matt Barrie, Founder of Freelancer

First 5 min the guest gives his take on lock out laws

 

Shut the front gate!

If you're not listening to my dribble you're missing out! forget the other dribblers on here, I'm number 1!
Check the time stamps you heard it here first!!!

Most unlikely suburb tipped as Sydney's next property hotspot

In Sydney’s south-west, 16 kilometres west of the CBD and bordering Bankstown and Roselands, the suburb colloquially known as “Punchy” is hitting back with a swathe of new developments, new infrastructure, a new image and a whole fresh set of aspirations.

 

Darlinghurst is getting ultra expensive already.. That 108m2 one that needs very expensive trash cleaning, the agent suggested a value approx 1.3m!! 1.3m for 108m2 and there's at least 4 months work of DA approval + trash removal!!! At least the vendor is willing to consider delayed settlement.

Do you think these places fit a buy and hold strategy better than a buy to upgrade + flip strategy? My priority is reselling the place (or being leveraged safely enough to hold it).

 

@bob shovel - you're well behind the times, Vince Sorrenti Picked it a few year back (ok, he was from Punchbowl): Linky


But before him, George Smilovich talked it up 30 odd years ago: Not quite linky

'I like to sleep in a city that never wakes up.....'

 

You guys are young pups, it is "biffo bowl" , that name has been around for a while, when you watched the footy for the punch ups