NSW Merry lands or Wentworthville IPP

Discussion in 'Where to Buy' started by gary176, 17th Jul, 2017.

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  1. gary176

    gary176 Well-Known Member

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    Hi all, I am planning to move overseas for around 4-5 years before coming back and settling down in Sydney. I missed the boat in buying a house but not want to ensure I have one before I go. My financial condition is good and have approx 250-300k deposit and good income to pay off the interest. Also I can take short term loss on house value as I am aiming for longer term returns. I want to also use my SMSF (another 200k) to buy another house but smaller value approx500k. I have been researching a lot and need your advise on few areas. Most of the areas are already out of reach but still there is some hope I guess. My property budget for two homes is: 900k and 500k for SMSF. For the 900k, I have looked at two suburbs where I can hopefully still get one: 1) Wentworthville (old house on 500 sum) and 2) Merrylands. Reason is there proximity to Parramatta and good train stations. Rental returns are approx 450-500 a week and potential to build a granny if area is good. Also even though not ideal, they are also an option to stay once I come back.

    For 500k, I am torn between Mel west suburbs or not so good suburbs in Sydney region e.g Wilmott, Shavley etc. I don't have a look of info on these suburbs apart from the fact that they will benefit with M4 and so. The idea is that this property will not require much additional contributions as should be very close to neutral.

    Any suggestion would be greatly appreciated.
     
  2. eletronic_exp0430

    eletronic_exp0430 Well-Known Member

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    There are places in Wentworthville now selling for 1million or very close to that. Even if you put $200k deposit say on a $900k house in wenty your still going to be negative geared by quite alot.

    Now, since your moving O/S what are your job prospects there and the likelihood you can service the loans if you are negative geared? @ $500 per week = $26k per year. Just say on a $700k loan @4.5% interest maybe more your I/O repayments would be = $31,500.

    You'd be putting in extra $5k a year minimum on that plus other expenses. Now whats the chances of Wentworthville growing to 1.5 million? I would say not much in the near future.

    Now, further out say in Tregear/Willmot for $500k. Your rental would be most likely $350 - $400 per week.

    Lets just say $375 taking the middle. Rental per yr = $19500. If you put $100k down your loan is $400k. @4.5% interest your I/O payments are = $18,000

    Your positive geared from day 1 pretty much. No stress. Move O/S and you dont have to worry about your investments here. Finding work will be less stressful and you can enjoy your working holiday or whatever it is.

    Plus I've said 100 times now research what is happening in the greater west in terms of infra/business growth and population growth - which is then directly related to the probability of growth in greater western Sydney. Will Willmot/Tregear reach over 1 million? Maybe not in the near future but when your buying houses at $450k or $500k in Sydney well good chance to grow still a few hundred grand in short term especially since so much investment is going on there.

    You can buy 3-4 houses there and if each goes up by $200k in 2-3 years well you've made almost $600-$800k profit without much stress and neutral/positive geared.

    If you buy 1 house in wenty for $900k and put in $200k well you dont have much left to buy another plus your serviceability will be impacted due to you having to put your own money into it each month. Say you hold this for 2-3years and it goes up to 1.1 million or even 1.2 million. Your only up $300k actually less because your putting money into it each month.

    Today there was an article on how suburbs between Parramatta and Marsden Park have the most income growth in the entire of Sydney. That in itself shows something very positive.

    OR I would be seriously considering Brisbane

    DYOR.
     
    Last edited: 17th Jul, 2017
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  3. gary176

    gary176 Well-Known Member

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    Thanks a lot for your advise. Looking long term, I think once Parr really establish itself as another city, suburbs like Wentworthville and merrylands will become inner city suburbs so potential for growth...I agree from cash flow prospective but like I said I am fine to put 15k a year cash on oene property given I already got a good good overseas and have the cash flow covered.

    In terms of other areas, would you put one suburb higher than the other when it comes to potential...Willmot over Tregear?
    Also any opinion on St Mary? A bit more expensive but probably a big potential once airport is done given it has an already established train station
     
  4. Scott No Mates

    Scott No Mates Well-Known Member

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  5. gary176

    gary176 Well-Known Member

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    Hopefully they will guide us:)
     
  6. skater

    skater Well-Known Member

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    I think all of 2770 is currently overpriced, however if you WERE contemplating it, the worst of the worst suburb is Willmot.
     
  7. datto

    datto Well-Known Member

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    Thanks. Gazz. Mate. 500K will get you a house in the Druitt. The Druitt has been good to many investors but the future?

    I'd probably take Merrylandz over Wenty as it's closer to Parra. But the bullets have been know to fly around Merrylandz, probably due to a crime family living there. But I suppose they got to live somewhere.
     
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  8. gary176

    gary176 Well-Known Member

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    Thanks, Looking at long term 10-20 years.. I think both Wenty and Merrylands has potential once Parra is really established. With second airport, don't u think places like Mt druit has potential? Considering it has a train station.. I know current demographics r not the best but it was the same with places like black town etc..
     
  9. eletronic_exp0430

    eletronic_exp0430 Well-Known Member

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    If your looking 10-20 years buy anywhere. You WILL make money in that timeframe.
     
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  10. eletronic_exp0430

    eletronic_exp0430 Well-Known Member

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    Sorry I'd have to disagree with you on that a lot. Like I said I've been paying very close attention to this postcode and in the last 12 months month on month there are steady rises. I'm waiting until August/September to see what rises there have been this month since FHB grant came into play.

    I'll be willing to bet once the major projects are finished it will increase even more. Thousands of ppl working out of Marsden Park business park right now with a lot left to go and heaps more places to open and WIllmot is right next door to it.

    Lets see.

    Op - make sure you do our own research and dont rely purely on sources on here. Due diligence on yourself is the best safeguard.
     
  11. gary176

    gary176 Well-Known Member

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    Thanks a lot.. I am someone who can never freaking make a decision but can trim it down to options..I sort of agree that once the airport and major projects are done.. we will see an increase in post code suburbs 2770....currently the rental returns are 5% which is a lot considering every where else is 3%...

    I am still tossing between Wentworthville and Merrylands..the thing that looks positive on Merrylands is the fact the it's train line directly connects to city, west and Campbeltown
     
  12. Property Twins

    Property Twins Mortgage Brokers & Buyers Agents Business Member

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    @gary176
    Wentworthville and Merrylands are well located, and will do well long term.
    Also check out surrounding suburbs - Pendle Hill, Girraween, Toongabbie - you may find these to be a little cheaper, but still well located.
     
  13. skater

    skater Well-Known Member

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    Then I guess we will have to agree to disagree. I've been living and investing out this way for a long time now and while I do agree that there is a lot of upside to the area, I'm of a strong opinion that there will be a pull back of prices before another upsurge in prices during the next boom.
     
  14. skater

    skater Well-Known Member

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    Agree with this, but rental yields aren't great, so if you are overseas, make sure you can hold onto them long term.
     
  15. eletronic_exp0430

    eletronic_exp0430 Well-Known Member

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    Whats it going to pull back to? Avg is only like $450k. Going to pull back to $300k? Or even $350k? I dont think so - I will buy another 10 out there.

    Cant pull back when it never increased that much in the first place. These suburbs havent had the growth that most others have experienced yet.

    Its not like Wentworthville when 5 years ago a house was $400k and now its $900k. Postcode 2770 has only steadily increasing. Not really a boom but it will continue to rise once all the infra is complete.

    When was there ever in the past 1 billion in infrastructure being invested out there? Never in history has there been this amount of cash being invested out there.
     
  16. gary176

    gary176 Well-Known Member

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    I think those areas went in value approx. 60% over 5 years...not so much as the other areas but still a lot...But given they are still considered Sydney region and specially with Marsden park and airport..they have good potential
     
  17. gary176

    gary176 Well-Known Member

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    The issue with the other suburbs quoted is the fact the their rental returns are the same as Wenty and Merrylands..they may be a bit cheaper but considering the public transport advantage and proximity to Parra...I think Wenty and Merry will be fine in 10 years or so...

    If I can get a good land (600 Sqm) but old property..i am thinking about putting a granny flat for dual income..
     
  18. Property Twins

    Property Twins Mortgage Brokers & Buyers Agents Business Member

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    Have you driven past these areas? These areas are 10 minutes train to Parramatta, 15 minutes drive. Close proximity to Blacktown CBD and Norwest Business Park. Not too sure what you mean when you say 'public transport advantage', as these areas are on the train line. I know Wentworthwhile is well sought after - but provided you won't be living here for a long time, isn't it better to focus on other surrounding areas, as people are priced out, they are more likely to move to surrounding areas?
     
  19. skater

    skater Well-Known Member

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    I've seen a few cycles and made a lot of money in this area. You are wrong in saying that this area hasn't seen the same growth. 2003 saw pricing for an average 3br ex-housing place rise to average $260k, then over the next few years came back down again & I was picking them up for under $200k.

    I am certainly the last person to see doom & gloom in this area, as I am sure @See Change and many others who have done well out of the area will attest to.
     
  20. eletronic_exp0430

    eletronic_exp0430 Well-Known Member

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    ^ Do you honestly think its going to go back down to $200k or even $300k prices? The 2770 postcode? My land value alone in postcode 2770 has been evaluated at over $200k by the government for land tax purposes so there is no chance in hell its going back down to that.