Duplex sites in Austral/leppington

Hello
We are looking to buy a duplex site somewhere in southwest corridor.Intent is to build and hold if the yield is attractive or immediate sale if it fetches a good price.The total cost of buying the land and building 2 duplexes would around $1.1m.The estimated rental on each is around the $550-$600 pw mark.After speaking with a few RE agents,I'm guessing each of the duplexes could sell for $650k each (conservatively).Wanted to get some advice on the suburbs and what are people's views about the growth drivers in the south west corridor.TIA

 

Wouldn't touch it at this stage of the cycle frankly. The time to invest there will be in 5 years when rates are higher and people are starting to jump out of windows. Supply isn't an issue out there, when the developers run out of land they just offer uncle Giuseppe a few million for his chicken farm and away they go again.

Even if you just intend to buy / develop / sell the turn around time is 2 years and even 200k profit won't give you much room to play with after tax, agents fee's and holding costs.

 

Thanks for that!
In that case,do you think it's a better option to build and rent out?
Also,what suburbs in NSW should we target-ones with strong growth drivers and that aren't too expensive.Keen to buy our investment!

 

You're on the right track, if anything I would be looking for something you can add value to to make a profit. I just don't think now is the right time to buy and hold.

If you buy now and hold, you're buying something that is negatively geared and will potentially be worth less than what you paid in 5 years time. So you end up with something worth less, costing you money every week to hold and will be close to needing a renovation before you see any significant growth. Sounds like fun eh, sign me up!

 

Why not consider some of the older suburbs with fibro houses directly adjacent to Liverpool cbd? You'll end up with with roughly the same cost/end values but located in an area with a much lower level of new stock and more growth potential in my opinion.

Determining if now is the right time to do so is another discussion...

 

How much are the fibro houses selling for?The other factor to consider is the profit I can lock in with 2 duplexes as opppsed to a single house.The cost of buying the land +building would be roughly around $1.1m in the Leppington area. Brand new duplexes are selling for anything between $650-$700k mark.Would you be able to throw some numbers for the Liverpool fibro home so I can compare?
TIA

 

Do you know giuseppe? Funny you should say that because my old boss pep his parents lived on some land out that way and it got bought out about 6-7 years ago and is now the new Inghams chicken site.

 

Sorry, I was talking about buying a old knockdown and building a new duplex on it.

Lurnea address available on request - Townhouse for Sale #124295442 - realestate.com.au

 

Plenty of cashed up Giusepps out here mate lol

 

Yep !

 

Yea I know mate you must be a local . I live about 5-10 mins away so I'm not that cashed up yet lol

 

Did not even know Lambos had a tow option ? What's next, a ute version for those selling off part of the farm ?