NSW Lisarow in the Central Cost- Good area for IP?

Hello Property Chatters!

I'm very new to the investment property market, so forgive me for any dumb questions.
My partner and I have been thinking of buying our first investment property. We are thinking of areas in the central coast since the prices in Sydney are just too high. We've been searching a little lately and noticed that properties on the Central Coast near the train line may be desirable.

1) What do you think of Lisarow as an area to buy an IP?
2) Is it an area attractive to renters?
3) What is the typical rental yield?

Thanks in advance for your responses.

 

It is not too bad for a commute to Sydney tbh but personally, there is not a chance in hell I would buy there. If you are going to buy on the CC you need to at least be near some water. There are better spots on the CC, look at Berkely Vale, San Remo or Lake Haven. Personally though I think you would find better CG and yields in Western or South Western Sydney.

 

I think the time to have bought in Lisarow has passed. DOM is 22 days right now and the yields have dropped dramatically due to CG over the past year.

We bought a few properties in Berkeley Value 18 months and prices have now jumped a lot (20%) so I wouldn't be buying there now either.

You are limited in Western Sydney with a budget under $500k.

The central coast is booming off the back off Sydney which always happens.

If you are going to buy on the CC, my advice is to buy very smartly and only properties where you can add value to them.

The CC always has a hard landing for people that have bought towards the top of the market.

 

Thank you Chris and Inov8ive's quick response!

Where would you recommend in Western Sydney with a budget around 500k? Our aim is to buy a property that is neutral/positive geared with consistent CG.

 

You can still get into the market around the St Marys area for that budget if you are smart. This just sold on the weekend and is in your budget range. http://www.realestate.com.au/property-house-nsw-st+marys-120280261
As suggested, you will need to value add in order to get the thing positively geared but there are great CG prospects in this part of Sydney over the next 5 - 10 years. This location will benefit greatly from the infrastructure plans for the new airport.

 

Might be a bit far away if you're looking locally, but further South of Sydney has better opportunities at the moment.
Plenty of infrastructure projects have been completed or are underway, low vacancy rates, good yield.
As mentioned above, I would definitely go for somewhere near the water if you're looking coastal.

 

Hi Azael,

Any particular suburbs in the south of Sydney that you would recommend?

 

I'm biased, but the Shoalhaven is doing pretty well at the moment.
Many places have already had growth, but there are still places around with good buys.
I was down in Sanctuary Point again on the weekend, and the RE agents windows are full of 'Sold' signs on most of the property. Prices have risen steadily, but haven't jumped a huge amount yet. I was surprised you can still get a 3 bedroom place for around $275k that's about 7mins drive to the water at Jervis Bay (and the top end of the market houses in Huskisson and Vincentia).
Time on market is down, vendor discounting is down, auction clearance rate is nudging 75%, yield is around 5.65%
Be aware of 'interesting' tenants at the lower end of the rental market.

 

These may help you if you haven't turned completely off Sydney -

http://www.smh.com.au/nsw/the-rise-of-parramatta-once-in-a-lifetime-opportunity-20150522-gh7eg3.html
In fact Ch7 news is doing a blurb on it tonight. Would guess you'd be looking for a unit ANYWHERE close to Parra for close to $500k (try Merrylands - the suburb next to Parra)

Also, according to this months Money mag the top yielders for NSW were -
San Remo(H), Gorokan(H), Mardi(U), Ourimbah(U), Wyong(U) & Bateau Bay(U) (all in the Wyong Council). Prices here are also some of the cheapest.

 

What do you guys think of North West of Sydney (excluding Eastwood, Epping)? Perhaps West Ryde, Macquarie Park?

 

You can try in sydney around the St. Andrews or raby area.

 

Hmm, I wonder where they get their data from.
Huskisson was consistently at the top on the Your Investment Property website.

 

House or apartment? You need to spend at least a million for a house in West Ryde.

 

We bought a neat little 2 bedder in Ryde (in an older complex) recently for $530K- still doable but getting tough. Ditto Parra area - you need to be on top of listings, very decisive and ready to secure when you do encounter something in this price bracket.

For central coast I'd be chatting to @Propertunity as he's the resident BA in that part of the world

 

Macquarie Park isn't cheap... West Ryde, relative to Parramatta I think the prices are ok. But still little capital gains to go since its already boomed. For example, the median is about 550k for 2br apartment, and I think it will be a while before it gets over 600k.

 

Suggest buying something that you can get at a good price, needs reno --> manufactured capital growth.

 

Hi All, thank you so much for all your responses. Given the market condition and that my partner and I do not have the time and skills to do major reno, we decided to increase our budget to $650k. With this higher budget, is there any other areas you would recommend?

 

If it was me with $650k, I'd be trying to get somewhere in the inner North (<>5kms out) in Brisbane.

 

For 650k you can buy something pretty good/well above average/well located/potential splitter block in Brisbane.

Even a 450k budget can buy you something decent.

 

Hi Gockie

I've been out of the Brissy market for some time but would be interested to know what suburbs (that are non-flood prone ) have splitter blocks for sub $650K that you think would be good value? Just curious...