Thoughts on growth in Mount Druitt?

Hi, hoping for some advice.

I have an investment property listed for sale in one of the inner Mt Druitt suburbs and so far the offers I've received have been around the 570-580k mark (Purchased it for 535k in 2017). The agent is pushing to sell it for around 580k and I'm just wondering what the best course of action is.

The reason for listing it for sale is that I feel that the area hasn't grown at all in the last 3-4 years. I can easily lease it out and hold on to it but wondering if there is any hope of any real growth in the future?

 

You bought at the top of the cycle. And there has been a pandemic. Not too bad if you are showing 10-ish % gains, tbh.

If you dont believe in future gains, sell. But what do you think drives growth and why do you think this property wont have it?

 

I think you need to take a step back and reevaluate your whole strategy from ground up. You bought in the outer fringes during the peak, and you're disappointed there's been marginal returns in 3-4 years? This is not a game for the impatient.

 

@Mystyic33

Mount Druitt CBD has been marked for a lot of development and inevitably growth!

Have you checked this out?

Billion dollar revamp on the way for Mt Druitt CBD

 

I'm just not sure to be honest, this is my first investment property. I've just had a lot of people telling me to sell because of the stigma around the area and limited growth potential (according to agents).

Apologies if I didn't word it correctly, I'm not disappointed in the returns so far but just weighing up if I would be better off buying an investment elsewhere or if this area actually has potential to grow in the next 5-10 years? I've been seeing a lot of houses on big blocks selling for below 600k so I suppose that's partly where my concerns are coming from.

Thank you, yes I saw this a while ago, is there any word on when this revamp may take place?

 

Who are these ‘people’ and what is their experience with property? Agents want you to sell so they can make money.

where would you buy instead? Taking into account the 10% buy, sell and buy again costs. Will you do this again if it doesnt boom in 3 years?

if you dont believe in the fundamentals of the area, sell. Just seems you are not making a choice for good reasons.

 

As others have pointed out, you haven't been in the game for a whole cycle only the downhill ride, patience is the name of the game.

@datto, @skater @sash & others have had their fingers in this market for years.

@Property Twins has linked a mooted redevelopment - so some research on your part (council, dept of planning, dept of housing, research papers etc) will shed more light on the area.

 

As has been mentioned, 3 problems here:

• you bought at the peak
• you've only waited 3-4 years when you should add at least a decade to that duration
• I won't say you're selling at a lowpoint but the market is tepid at best in Mount Druitt. In fact, it barely has a pulse - lack of appetite for fringe suburbs atm

 

I work for an agency close to Mount Druitt so follow it closely and I would personally hold if you can afford it. As @Property Twins said there is some interesting developments happening. Compare Mount Druitts vacancy rate to Parramatta and Blacktown and of the Western Sydney hubs the only one better is Penrith. We are seeing a lot more Parramatta residents moving out west due to Covid. They can have bigger/nicer(come at me trolls ) properties for on average $150 to $175 less a week.

 

Go the Druitt! oi oi

 

Really? I don't know why anyone seriously considers that Sash has any idea about Mt Druitt area. He's a stirer, plain & simple. He's never bought anything here, and never will. Sheesh, I'm betting he's never even driven through the area.

 

Property does not grow in a straight line. You bought at the top of the market & you expect growth a few years later? You've done really well to get ANY growth in that time frame.

 

Why would you listen to other people? Especially people who don't know the area well. There's a lot of money to be made out of the area, but you need a lot more patience than 3-4 years.

 

Absolutely correct. Look at the attached growth chart - you bought in round 2017 where median price was ~ $700k and now it is around the same (a bit lower) - property is a long term game, and not the share market.

As others have said in the post, western sydney has a lot going for it, including the infrastructure investment indicated my the property twins, and the badgerys creek airport longer term, which will likely have a nice domino effect.

While I don't know your personal situation, I would hold the investment long term.

 

Thanks all, much appreciated. I've decided to hold on to the property. Here's a question, the agents I signed up with ended up leaving the agency a few weeks after the property was listed.

I was then assigned a new agent who lowered the listed price quite a bit from our agreement and they're now wanting me to pay for the marketing fees if I pull out of the selling contract. Do I have any grounds to dispute these charges?

 

Is it with ResponseRE by any chance? Do you currently have it rented out? If so is it with the same agency that is selling the property.

 

It's actually with Harcourts. The property is vacant at the moment but is going to be leased out through the same agency.

 

Ok. It's very rare but some agencies will discount the marketing fee if you retain them to do property management of the premises. Give it a shot but I wouldn't get your hopes up.

 

if there was any it would be found in the selling agreement you signed.

Unless you changed it, it probably states you have to pay marketing if you pull out or it doesnt sell.

 

As @Trainee said, check your selling agreement.