NSW Mt Druitt Unit IP

Hi guys - Recently blocks of new Units have been constructed off Luxford rd ( behind Supercheap Auto/ Red rooster) and close to Mt Druitt Westfield (about 10mins walk). These 2-3 bed units are going for 450k onwards. I was curious to know if investing in those Units would be worthwhile. I am thinking that they maybe poor investment due to the fact that that area around Westfield is saturated with other older Units and so rental demand could be low, as well as low capital growth. Does anybody see any potential of capital growth in Mt Druitt area. One thing that is pulling me towards Mt Druitt is it still offers a chance to buy IP but......

 

# @datto

Broadly "land" ie a house is better investment then Units

 

I came very close to buying a 2 bed unit as IP close to Luxford road back in 2015 .. lucky for me that I didn’t because they are still same price in 2021 and even after a boom of lifetime

 

Always land especially in the outer suburbs. In saying that buying a unit in St Marys/Mt Druitt CBD right next to or near where all the development is happening with the future plans "may" not be "that" bad.

Its a different thing buying a unit in Bidwell/Shalvey/Willmot on Luxford Road that is not that close to where the major developments are happening. I would always buy land the further away from the CBDs of these areas are.

Mind you these areas are NOT cheap anymore. Far from it. Well maybe cheap as chips compared to North Sydney - hahaha

 

You are always going to be paying a premium by buying a new unit. Remember though, it doesn't stay shiny & new forever. If you've got the serviceability you will be better off with a house & land.

 

I'd rather head north along Luxford Rd and buy some fibro.

However, having said that, how long can older units in the Druitt stay so cheap?

Under 300K with a LUG! See photo below. Disregard the wet brickwork from drain leaks. Easy fix.


38 Luxford Rd.

 

Hi Standtall - your experience confirms my thinking in that not much growth has happened or will happen with Mt Druitt units. Thanks for sharing your experience - PityMuffin

 

They have to go up in price and some point. They can’t stay that cheap forever.

 

Come on..

 

I am also thinking to invest in apartment to save the land tax but still struggling as to whether I should pay 200-300k more to have a land in Blackett areas

 

You don't save any land tax by buying a unit, if that's your only investment. Land Tax is a tax on all the land that you own, less the PPOR, in the one State. Unless you are buying a high value asset, it's unlikely that you will go over the threshold with just one IP.

 

No Fairdinkum think about it. Those units can’t stay at $300 K when houses are double that price.

 

I tend to agree. Once you've got more international students back in the market, two bedroom places will see more demand, which will push up prices.

 

Prices went down 2 years ago when international students market was at the top. Supply was the issue at the time and I don't see supply drying up anytime soon. The billion dollar development approved in the druitt CBD will attract a lot of apartments too.

I owned a 2 bedder on hythe street which was luckily sold at the top of the market. I was the last seller in that building to get the market peek. The next sale after that was $300K and it still is when everywhere else boomed.

 

I understand what you are saying, but supply & demand changes all the time. Units are built, and it takes time for the demand to catch up with supply, but over time it does catch up.

Those new units that will be built, with be at a much higher price point than the existing units, so those that are price sensitive, will buy the older ones, pushing their prices up, but those buying new will always pay a premium.

 

Still loads of apartments on the market near me…. My whole area has so much stock, and low buyer demand. Unit growth will be very slow….

See here.
Sydney Price Correction 2019 - post examples

 

And if you buy top floor, there’s the roof cavity just waiting to be cultivated. Ooh and all that free electricity

 

He bought for 330k and sold now 282k. Over 50 k loss.

 

That's a pretty big block, though I love a red brick for sure. Are there many 'boutique' blocks of 6-8 around the area at all?
Not that long ago that units closer in were doing better than houses. Everything has its day. And a good 60s red brick bought at bargain basement is so easy to hold.