NSW If you Must buy Apartments in Sydney

Discussion in 'Where to Buy' started by Whoot, 28th May, 2017.

Join Australia's most dynamic and respected property investment community
Tags:
  1. Gockie

    Gockie Life is good ☺️ Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    14,740
    Location:
    Sydney
    RP Data Pro app, however to have it you need a subscription.
     
  2. Cmelderis

    Cmelderis Well-Known Member

    Joined:
    10th Sep, 2015
    Posts:
    480
    Location:
    Perth
    Also still following Lakemba....keen to get a Sydney IP next year as between my partner and I we are paying a substantial amount of tax now.
    Wondering if people see better value elsewhere for a budget around 400-450k.....
     
  3. Trainee

    Trainee Well-Known Member

    Joined:
    24th May, 2017
    Posts:
    10,258
    Location:
    Australia
    Thats a really bad reason to buy a ip.
     
    Archaon, Mark F and Ted Varrick like this.
  4. Wazza

    Wazza Member

    Joined:
    5th Dec, 2018
    Posts:
    8
    Location:
    Sydney
    I remember checking out Lakemba back in 2008-09. 2 br units close to the station were listed in the high $100's. I thought they were a bargain back then being only around 15 minutes from the city on the train. One needs to look where people are looking/moving to live, and not necessarily where you would like to live. I wasn't in a position to buy back then (had just bought my first OO house), but man I wish I had.
     
  5. Illusivedreams

    Illusivedreams Well-Known Member

    Joined:
    3rd Oct, 2017
    Posts:
    2,454
    Location:
    Sydney
    In 2008 you could have Bought in most of Sydney and made 100%, capital gain. But quality of tenancy may be better over the 10 year run in other places.

    Many here wish they bought more in 08/09 I bought 2 units with my wife with min 100% growth.

    We all wish for hindsight :)

    I always say "What will you regret in 10 years that you didn't do now "
     
  6. Lacrim

    Lacrim Well-Known Member

    Joined:
    25th Jul, 2015
    Posts:
    6,175
    Location:
    Australia
    vudu likes this.
  7. TMNT

    TMNT Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    5,572
    Location:
    Melbourne
    Archaon and vudu like this.
  8. vudu

    vudu Well-Known Member

    Joined:
    18th Aug, 2016
    Posts:
    101
    Location:
    Sydney
    Great Idea. Questionable execution.
     
    Archaon likes this.
  9. StunningWill

    StunningWill Well-Known Member

    Joined:
    4th Oct, 2016
    Posts:
    68
    Location:
    Sydney
    Why do you say no one wants to live in Zetland and they are concrete boxes. Have you been to Zetland or just drove past on the motorway and came up with your own conclusion. I'm sure most of the apartments are occupied. New generation people likes modern and new. Each to their own and I have inspected many old walk ups to notice that no one wants to spend any money to get anything done. The common area carpet looks 30 years old and disgusting. Low ceilings which you cannot reno and make higher. Your window has an issue and the small block prefers you to pay instead of strata to keep costs down. You need to take your rubbish out etc. High rise modern apartments is a lifestyle choice and convenient for some. If Zetland was empty and no one wanted to live there, I'm sure developers wouldn't still be building high rise after high rise all over Sydney.
     
    KFC_8 likes this.
  10. Elmer

    Elmer Member

    Joined:
    6th Jul, 2020
    Posts:
    15
    Location:
    Sydney
    I'm been contemplating as well. There's a certain stimga attached to these south-west suburbs which are really close to the CBD. People are deterred from the supposed increased crime rates, theft and cleanliness of these suburbs. Looking at various government statistics, in terms of crime it is no worse than any other area.

    The Sydney Metro will extend out to Bankstown, with Lakemba receiving a service every 4 minutes to the CBD and beyond. So you can expect that 15 minute train ride to be further reduced.

    What further is an attraction point is the elevation of Lakemba, particularly a north-east apartment can provide unobstructed city or district views i.e.:

    https://www.realestate.com.au/property/unit-9-70-taylor-st-lakemba-nsw-2195

    I've been meaning to pull the trigger, missed out on the above.

    Closer to the CBD you can wager that it makes this area a better candidate for gentrification. As someone posted earlier on in this thread, look at Marrickville. A decade a go it was described as a thief thriving slum with littered footpaths and dangerous people. Look at it now... it's the epitome of the Inner West, rivalling Newtown some evening referring it to as inner city. It has the village type atmosphere, whilst not being too close to the CBD. Annual growth soon followed with gentrification taking place and has become a very appealing area for those folk looking for inner city/village type living with the added convenience of almost anything within walking distance.
     
  11. Maximus

    Maximus Well-Known Member

    Joined:
    4th Aug, 2019
    Posts:
    86
    Location:
    Sydney
    Just my opinon but i believe Marrickville wasn't as high density as Lakemba was a decade ago, Lakemba is generally the first stop for new immigrants and has been for a while which makes it an undesirable suburb for most.
    Come over 500 meters east and similar properties in Belmore are 20% more, add another 20% for Campsie.
    I consider Lakemba a good entry level suburb thats close to the city with good access, i dont think Lakemba will ever lose its Stigma though.
    Considering how many older style units are built in Lakemba with mostly lower socio economic residents i don't see how the area can be gentrified like the inner west suburbs.
    I dont think now is a good time to buy but an old house with a 450m2 block sold for 715k right on the border of Lakemba and Belmore.
     
    George Smiley likes this.
  12. Elmer

    Elmer Member

    Joined:
    6th Jul, 2020
    Posts:
    15
    Location:
    Sydney
    marrickville high density apartment blocks only started after I believe 2010. Even the tallest development at Livingstone rd isn’t a proper high rise compared to some other concrete neighborhoods like mascot and Wolli creek.

    Lakemba isn’t really high density housing. I believe you have one high rise consisting of 5 levels on the western end. Most unit blocks are low rise only reaching about 3 stories from circa 70s.

    I think your opinion echos the opinion of what people thought about marrickville some decades ago. Marrickville is also known for a large population of migrants looking for temporary accommodation upon first arriving to NSW.
    The remnants of a large ethnic immigration from Vietnam and Greece are still present and should give a bit of a hint on its past. This alone didn’t exclude it from becoming gentrified. In fact, the plethora of Vietnamese restaurants continue to thrive.
    The stigma still remains for marrickville, just looking at Illawarra rd still seems rundown.
    The close proximity was overlooked because the perception was that it was generally unsafe, with a large population from lower-socioeconomic backgrounds.
     
  13. The.Night.King

    The.Night.King Well-Known Member

    Joined:
    15th Jul, 2020
    Posts:
    140
    Location:
    Australia
    LAKEMBA... let the numbers speaks for themselves... take note of the median household weekly income $849. DSR score is not that great either. Negative growth for UNITS.

    Free Suburb Profile report for Lakemba NSW (2195)

    On the other hand if you can afford a HOUSE well... looks a lot better based on that report.
     
  14. Elmer

    Elmer Member

    Joined:
    6th Jul, 2020
    Posts:
    15
    Location:
    Sydney
    Yep, negative growth in the last 12 months. Not surprising almost any area in the past 12 months will experience 0% or negative growth due to economic impacts.

    Looking here which gives a better prospective over 10 years annual growth for units:

    LAKEMBA NSW, AU SUBURB PROFILE - FREE REPORT

    10 years average annual 5.98%

    Not bad.
     
  15. Elmer

    Elmer Member

    Joined:
    6th Jul, 2020
    Posts:
    15
    Location:
    Sydney
    Also understanding the DSR metric:

    DSR Score for Property Investment | Your Investment Property
    Mainly based on a supply/demand market. The score is also used to determine if it's a buyers or sellers market. Are you kidding me? Bit meaningless at the moment with RE's starving the market with artificial limited supply, creating a tightened market.
     
  16. The.Night.King

    The.Night.King Well-Known Member

    Joined:
    15th Jul, 2020
    Posts:
    140
    Location:
    Australia
    Unit Median is around $380k with a yield of around 4.93% so I guess this Positive Cash Flow IP. Depends where you are on your Investing? Are you in the accumulation/Building Phase?

    Now of course I will in that case look around on other suburbs with that pricepoint and a possible higher CG. That is because Im still in the accumulation phase and my current situation allows me to get a CG Property.
     
  17. The.Night.King

    The.Night.King Well-Known Member

    Joined:
    15th Jul, 2020
    Posts:
    140
    Location:
    Australia
    Im at work atm. Let me see if I could find a good unit in a better suburb at that pricepoint later tonight


    $380 - 400k

    6% Capital growth average yearly.
     
  18. Elmer

    Elmer Member

    Joined:
    6th Jul, 2020
    Posts:
    15
    Location:
    Sydney
    Also don't forgot one other important/appealing aspect of Lakemba < 15 km from CBD.

    This has to be taken into consideration. Not sure what $380k will get you, maybe a studio in the CBD? Which aren't very well known for exceeding capital growth expectations.

    Regardless, I would be interested to see what your findings are < 15km from CBD, 380-400k price point and 6% CG annual.
     
  19. Elmer

    Elmer Member

    Joined:
    6th Jul, 2020
    Posts:
    15
    Location:
    Sydney
    I've done some quick looking
    539 Real Estate Properties for Sale in Sydney Region, NSW | Domain
    536 properties fit the price criteria and minimum bedroom requirement.
    Seems most are retirement living units and student accomodation. There's not much at this price point.

    Australia Suburb Profile - Sydney Distance to CBD - Ranking

    Lakemba is actually 13.5km from the CBD (13km according to Wiki)
    Median is $821,900. Going a few pages back, distance in deceasing, no other suburb reaches a median this low. Most are above 1.2 million.

    Night King, I think it is next to near impossible to unit a 2 bedder unit at 380k below 13km from the CBD, offering an annual 6% GC whilst having positive cashflow.
     
    The.Night.King likes this.
  20. The.Night.King

    The.Night.King Well-Known Member

    Joined:
    15th Jul, 2020
    Posts:
    140
    Location:
    Australia
    Yes, it does seem to be an outlier... I wonder why?

    But I totally agree, if the numbers make sense. Go dor it
     

Build Passive Income WITHOUT Dropping $15K On Buyers Agents Each Time! Helping People Achieve PASSIVE INCOME Using Our Unique Data-Driven System, So You Can Confidently Buy Top 5% Growth & Cashflow Property, Anywhere In Australia