NSW Parramatta

Interesting insight about the southern parts of Parramatta around Auto Alley. I actually think the south area between Railway St and the Great Western Highway has the most potential for capital growth of all of Parramatta.

Earlier this year, 9 News had a feature about Parramatta council's plans to rezone the Auto Alley area and develop it into commercial office and residential towers, starting with a development called "Gateway South, Parramatta", which is on the site of the former "Heartland Holden" dealership.

 

Pretty dear to enter Granville now.

 

Hi Nick,

Yes it was. I did quite well with it. It was a PPOR for tax purposes (thank you, 6 year tax rule!!), so I'd purchased in late 2008; 2-bed unit unrenovated in a smallish size block. Tenants moved out in Dec 2014, I went in with a sleeping bag, pillow, 2 weeks of 'after work only, and weekends' time up my sleeve, and a car with a bunnings nearby.

$2.8K later and I'd completely re-painted ceilings, walls, doors; rejuvinated the kitchen cabinetry (think Cherie Barber style); new handles on all doors/cupboards, new blinds that Old Mate down in Smithfield does for me on the cheap (I then fit them myself); and a bit of general elbow grease. Most of the $2.8K was actually spent on recarpeting the place. Other little things helped make the apartment like new (fitted new toilet seats/covers; re-strung flyscreens etc. All these little things that one can do themselves).

Sold in Q1 of 2015 in peak-market property clock. Here's how the numbers went:

- Purchased 2008 $220K; lived in it for 12 months (nabbed a handy $7K Gov grant that was going at the time for FHB's)
- 2009: Moved out and rented it for 5 years after I'd moved out. Weekly rent achieved was up to $370PW at it's highest point
- 2014: In Dec I went in for my "guerrilla" reno. Two weeks of hell, on an air mattress, fast food every morning (yuck, but time necessary!) and commuting to work for ten hour days in the CBD working in my dayjob (advertising). During guerrilla-reno; I was prepping sales agent for marketing so it'd be photograph-able immediately on final day of the reno
- Pre-reno the val came in at $370K; after spending less than $3K and a lot of sweat-labour; the pre-sale vals were coming in at $410-$415K
- 2015 (February): Settled in February for $420K; CGT-Free. Remaining mortgage at time of sale: $134K. Selling costs (reno + agents fees/bank fees: ~ $10K) Cleared tax-free: $276K

Since February...

I've used this gain to expand my portfolio. It has really been the catalyst for a big growth year for me in terms of further acquisitions.

I don't mean this post to come off as bragging or anything; and I don't deny that the 'luck' of the overall 2013-2015 Sydney 'boom years' helped me achieve this result; but it goes to show that a hybrid of two philosophies; 1) "Time IN the market" and 2) "Timing the market" can be a winning strategy if you play your cards smartly

 

That's some dedication for those 2 weeks. Even such a minimal amount for a renovation can make a big difference.

The post doesn't come off as bragging. It's good to share knowledge and experience so that other people can see what is possible and get new ideas.

 

Could be worth buying an old walk-up unit in an area that's rezoned for high rise, then convincing the owners to put the whole thing on the market. I know someone who has a 1960s tiny 2 bedder in north parra who's just pocketed 900k for her share of land value from a developer. Unit would be worth high 400s currently.

 

Parramatta City Council have released a new video titled "The Rise and Rise of Parramatta". It summarises the growth drivers for the suburb, and features the NSW Premier, and other high profile people talking about opportunities for the area.

 

Great work! I like Harris Park because it is in demand from renters but probably too expensive to get in now.

 

Me too. Still too exy though prices have gone down a few percent in the last couple of weeks. Would love to see more fhb's there. Hope I can buy there again in a few years - but maybe not.

 

I was looking at units but for the price I should go get a landed property.

 

Yes, that's true.

2 bedders existing apartment in Parramatta cost you $630k minimum and more if it is newer around $720k.

I've been looking around Parramatta area since March this year but price always goes up be it auction or private treaty, I guess yes, investing in Parramatta is the best choice of the year for mid term CG.

 

Older units in HP are about 430K about now. Down from 450+.

 

Rent is about 370pw though. I like the art deco type of units. You?

 

Of course but it's mostly the 60's stock there. Not pretty but built to last. Have you seen much art deco?

 

I've seen quite a bit in Strathfield area but not much else. Why did you think HP has slowed? It's a small suburb with amenities, restaurant strips and close to Parramatta (one station away).

 

I watch it with an eagle eye. It's still doing well, mind you. A few months ago there was absolutely nothing on the market. As soon as something was advertised it was under contract and prices jumping 10K a pop.
It's an investor area still which is why it's had an amazing run this time. APRA has taken some of the crazy out of the market it seems.

 

Great. We can watch it together.

 

Cool. You're on. I think we can put a bit away for about 18 months while we're watching.
@Tekoz should probably join us.
I actually want to buy into the same block that I'm already in.

 

Taking advantage of the new strata laws? Have they been passed?

 

Actually haven't heard about these yet. What are they?
Just that I know the building and already have to deal with those characters anyway.

 

I think the proposed new laws allow a minimum of 75% to vote to have the building sold to developers...so if you own few units and couple with like-minded owners in a small complex...

http://www.fairtrading.nsw.gov.au/f...aws/Collective_sale_and_renewal_reforms.page?