NSW IP in seven hills

Hi All, i found a 60 year old house in Seven Hills. Its a 575sqm clad house,1..5kms to blacktown station ,1.9kms to seven hills station, 350 metres to blacktown aquatic center, 9 mins drive to blacktown Hospital, for 900k. My plan is to rent it out. Approx rent would be 400 per week.

Another property that im looking at is in Blacktown, $1.2 million,4 bed, 2 bath renovated home plus a 2 bed granny flat on a 822.2m2 block with a frontage of 18.29m.Current rent : $900, 4.1 kms to both blacktown & seven hills stations.

Could you please advise if these are good properties from investment perspective. If yes - which one would you suggest ?

Thank you very much in advance.

 

I'd give both a miss. Walk to station is the way to go for these suburbs, otherwise there's just so much choice. If the one in blacko was walk to station, it would be fair price at 1.2m. 1m for the house, 200k for the gf.

 

Whether it will be a good investment depends on what your goal is and if the property will help you work towards your goal. The first property would have a pretty low yield, so would you be able to hold this for the longer term? The Second property would be easier to hold given the added benefit of the GF. Though, has a higher buy-in price and may cost a premium given the GF and renovation. This also means it doesn't appear to have much value add potential (if this is something you want). As an alternative, you may want to consider looking inter-state as you may find a more viable investment for your goals. I hope this helps.

 

Blacktown Council got weird duplex subdivision criteria. So your plan is to redevelop in future (duplex) then review the DCP first. Rental yield will be low in both suburbs. And my personal view capital growth will be not high in next 3-4 year as you buying at pick and market may go down or sideways in near future. 9 weeks of lockdown and it likely to go another 5-6 weeks. Rent is going down too. Interstate may be able to give you better CF. 2 x 500k properties in other states.

 

This!
But to be honest, I wouldn't touch either of them with a bar of soap. The negative cf will eat you alive.

 

100% agreed.

$ 900,000 purchase plus stamp duty & legal $ 40,000, $180,000 deposit

Loan 760,000 @ 3% I/O, yearly interest 22,800, $ 2,000 agent, $ 1600 rate, $ 1600 Sydney Water, $ 1000 Insurance, $ 1000 repair, $ 1000 land tax,

Rent $ 20,000 (400 x 50 weeks). $ 190-200/week (may drop down to $ 150 after tax return).

 

Thanks everyone for your valuable suggestions. Inter-state is in the plan but did not find any good property yet. Meanwhile, I found another one in seven hills : 645 sqm land, 60 year old house & a granny flat (both clad),1.5kms to blacktown station ,1.9kms to seven hills station, 350 metres to blacktown aquatic center, 9 mins drive to blacktown Hospital. Price is 1.05 Million. Current rent is 800 per week (for house+granny). Could you please advise. Thanks