Quality of tenants in Sunshine (Melbourne)

Hey guys
Does anyone know what the rental demand and the quality of tenants you can get in Sunshine?
Can you get reasonable quality tenants in Sunshine who will look after the property if it is a reasonably renovated house?
Appreciate anyone with knowledge of the Sunshine area and rental market
Thanks

 

We have 2 ip there, one tenanted within a week, and the other in 4 weeks (asking more than what the agent suggested).
Never had any problem with both of the tenants.
What sort of rental figure are you aiming?

 

Thanks for the feedback. Well I am just doing some due diligence into Sunshine as an area on whether or not to buy an IP there. May I ask what kind of rent you are getting on the 2 IPs and how many beds/baths they are?

 

Old house 3 beds, 1 bath on 600's m2 lot average about $360-380/week. We bought it for the growth potential and planning to develop it for better yield.

 

Yeah i think that's a good buy for land banking, hope you had got in early. These blocks around 600m2 have really taken off lately in this area due to the zoning changes.
How long have you had the properties for and have you been able to increase the rent a bit each year?
And do you reckon later on you could develop 2 or 3 townhouses/units later on it?

 

A lot of investment have been going on in Sunshine, but i have to admit that it still takes time to reap the reward. I posted in other thread some time ago.

We bought the property within the Activity Center Zone allowing up to 4 storey high, so turning it into apartment block for the yield makes more sense rather than townhouses. Currently in the process of getting the planning permit.

We bought them last year, and based on recent sales on similar properties in the same zone, I am quite happy with the gain.

If you don't mind me asking, which area of Sunshine you are interested in?

 

Ahh I see, thanks for sharing your insights into Sunshine. To be honest, I don't know the Sunshine area well at al as I've never driven around it to visit. I am from the east side and have an IP in Flemington - So I know the inner west kind of well after doing research whilst I was hunting for it for a few months. I've only just read and heard that the Matthews Hill estate area is really nice. I'm more of a "buy & hold & add value" strategy type of investor. So I was thinking of buying something in Sunshine where I could later either renovate & extend OR subdivide and develop behind original dwelling ideally.
Just a thought - I do wonder with all this development going on and in the pipeline for Sunshine, wonder if there will later be an oversupply of apartments/townhouses if you do decide to keep hold of them after developing?

 

We are also from the eastern suburb who never thought of investing in the west until recently when affordability is a problem. I believe it is about time to consider western suburb.

I still think that rental demand will catch up as soon as all the new infrastructure are in place as it's still affordable. Brimbank council has been non-stop upgrading the area especially around the ACZ.

If you haven't been to sunshine for a long time, try to go there and see the difference.

 

Yeah I've been thinking along the same lines too, hence I bought in Flemington earlier in the year. I think people will naturally gravitate towards more affordable areas as they get priced out. Although I have a feeling that Sunshine might be fully priced now and may have peaked in the short term as it has had very strong price growth in recent few years.