NSW Inner West suburbs and Waterloo/Alexandria (IP search)

Hi all PC,

As mentioned in this title, I'm currently looking for an IP to purchase in these areas.

I'm not quite into anything at the moment, just doing research and mostly observing anything in the market

But, there's one thing I'm not quite understand, that houses seem to be expensive in those areas Hurlstone Park/Ashfield and Summer Hill/Dulwich Hill, seen a few around 1.3-1.6m, but rental income seems low for kinda the same price with some around Surry Hill, Alexandria and Waterloo

Just curious, any ideas?

Many thanks in advance guys, any recommendation would be much appreciated
And I'll do my own research, too

 

The inner west properties typically have a much larger land contents whereas Surry hills Redfern and Alexandria are terraces which consists much smaller content. The reason that those inner city suburbs does better rental return is that they are close to the city with lots of cafes and bars are are typically highly preferable by professionals working in the city with good amount of disposable income and therefore willing to pay higher rent. They don't typically cared too much about backyards, just close to work and have great cafes to hangout on the weekends.

 

over the long term, i think the inner city burbs will do better because of convenience and lifestyle trends.

 

You're on a winner If you can get more than 2% gross yield in the inner west. Remember to factor in land tax as even the smallest blocks.will attract land tax.

Don't forget plane/train/highway noise.

 

Agreed, I went down to these areas, particularly those near Green Square Station, even though tons of building under construction, but lots of parks surrounding already, new shopping centre coming.

there are a few good streets too, but then yeah quite a few high traffic roads (connecting the airport and the city)

Land tax is a new term for me....will check that