Mount Druitt?? Or where to invest..$550,000

Im looking at investing for the first time. Ive got $550,000 to work with but need a good rental return.

 

@Trustee88 - Sydney as you know has grown a lot over the last 5 years. Rental returns are pretty much non existent.

What's the reason for you choosing Sydney for investment at this point in the property cycle?

 

Question...are you prepared to cope with negative growth or no growth for at least 10 years?

 

Neg growth or no growth for AT LEAST 10 years sound a bit extreme. If migration to Sydney continues, it's not very likely. Let me explain how and you can share your thoughts.

~150k skilled immigrants (permanent residents) come to the city every year and there's no plan from govt to curb these numbers (at least not that I am aware of) as the economy 'needs' those skills. Leave alone the ones who were on other random visas (e.g. holiday working visa, student visa, 457 visa, their working partners, etc) who eventually become residents/ citizens every year. I would love to believe that this doesn't impact housing demand in Sydney but unfortunately other cities (barring Melbourne) don't have enough jobs and even the immigrants with state sponsorship from those states end up in Sydney for jobs, some people call it a 'loophole' in the system as they get away with doing so even when they were supposed to live in the sponsoring state for at least 2 yrs before they could go elsewhere as a condition of the state sponsorship. I am not even counting political refugees in my argument, with the assumption that they might take longer to start riding the housing market, unlike other immigrants who are supposedly skilled and ready for the job market from the day they arrive.

Cutting the long story short, I would love to understand as to how Sydney market will absorb this population increase every year without causing a consistently high housing demand. Don't take me wrong, rational or low demand is good for many newbies like myself (spending 40% or more of one's income on housing alone is no fun - be it toward rent or unproductive loan repayment) but I just don't think it will ever be possible in near future due to above reasons unless govt curbs immigration and students inflow that eventually add to the demand by huge numbers. You may say that immigration always existed and Sydney still went through property cycles, BUT I would tend to believe that continuous/ consistent immigration of this volume is a development of last 10-15 yrs only.

Happy to be proven wrong and I welcome your views.

 

Errr..incorrrect....the immigration number is about 190k...457 visas have been cracked down on.

The growth rate for Sydney is slowing it is about 40k in terms of people...a lot of people are leaving Sydney...too soon to show up in stats..but if Bernard Salt is correct as Baby Boomers exit they would head up to the coast within 4 hrs of Soidneee.....and also for lifestyle reasons and with tech improvements you might have people working away from Soidneee..some thung to thunk about....

Having said that....Sydney will continue to grow...but over the longer terms..it has hit its straps for the next 7-10 years or so....

 

Where are good growth areas then.
Too early for Perth?
Hobart I read is questionable
Outer rim of Brisbane?

The information I read is confounding.

Ideally I would love to stay under $500,000.

 

Hobart offers the ability to get in and out and make some coin

Brissie still has a lot to move....

Perth...absolute bargin's if you are prepared to hold for 5-6 years...great buyin in nice areas and beach suburbs close to city.

Also some great options around H&L ...in established areas as a buy and hold over the long term.

 

And all those baby boomers leaving Sydney for that cheap, idyllic lifestyle up the coast will be returning for better access to medical services.

And the only place they'll be able to afford when they come back will probably be the Druitt. LOL.

"Hello new neighbour!"

 

Ditto ....Datto...they will do it anyway...that is what Bernard Salt is sayin' ...but watch for major regional hospitals.....dey could be ways to make money. Having said that complex procedures would need to be done at bigger hospitals....

As for Druie residents getting better medical care keep dreamin'....both libs and labor don't care about dem....half of dem don't vote...they have trouble fillin' out the votin' sheets.

 

Brisbane, older freestanding home as close to the cbd as budget possible, the larger the land content the better. In a decent OO area. Medium term you quite likely will do well.

 

Ya gonna need the population out there to warrant big hospitals. And faster trains.

The life expectantcy in the Druitt is far lower than the national average of Australia 200 years ago.
The quicker they cark it out there the more money the govt saves in medical and Centrelink expenses. But the locals have been fighting back with the 7 child per single mum policy.

 

Yes I know what you mean...the goobermine is working on a policy of sterilization via L'Eau in the Druie.

 

Exactly! That's why I'm rooting for the locals out there. If enough of us get together we can get the govt to spend more money on hospitals. A gang makes more of an impact than one alone. Join us!

 

In your case literally...I am sure.

 

They have. Keep in mind that Blacktown and Mt Druitt are run as 1 hospital on 2 sites.
Blacktown Mount Druitt Hospital - WSLHD
Mt Druitt Hospital has for several years (since the mid 2000s) been a few bits and bobs that didn't have to be at mothership at Blacktown - basically the children's ward, rehab and a walk in ED (ambulances will go to Blacktown). For most things if you need to be admitted at Mt Druitt, you will be transferred to Blacktown.
Never the less it did get a MRI scanner
http://www.bmdhproject.health.nsw.gov.au/WWW_Blacktown/media/Media/Weekly Updates/239-BMDH-Update-MRI.pdf

The Blacktown part of the campus of course had/having a massive $700+ million upgrade (now on stage 2)
We’re for Sydney | Daily Telegraph
Projects

The Nepean hospital down the road is also slated for a massive upgrade
Process begins for hospital redevelopment
Works begin for $576 million Nepean Hospital

Of course it is an entirely different matter if they have the funding to actually staff any of these new an upgraded facilities. You may have to be a pioneer in self service healthcare
Mt Druitt Hospital is however conveniently situated near to both Uncle Buck's tavern and the cop shop.

 

And Rooty Hill RSL ain't too far away either lol The Vegas of the West!

En route to Blacktown Hospital you can ask the ambo to make a quick stop there. Fifty on the pokies , 2 schooies of VB then back on the road to get the stab wounds fixed up.

 

Blacktown (which includes Mt Druitt as described above) does have the highest number of births in the state, however they have been locked in a neck and neck battle with Auburn for the crown over many years.

Oh baby, we’re booming!

Blacktown baby boom

 

So the 64k question have they made money?

 

I think those who bought 2-3 years ago within 10km of the cbd free standing homes would have definitely made money.