NSW Warwick Farm or Liverpool

I guess my biggest concern is the number of new apartment buildings being built in Liverpool. There is a LOT of new apartments and a lot currently under construction.

Given all the new stock available, won't this put downward pressure on rents in the area, especially on older units... ie. If u had a choice, wouldn't u prefer to rent a new or near new apartment for slightly more rent than a unit in a 30 - 40 yr old rundown building.

If u have to drop your rent significantly to attract a tenant, wouldn't this affect your yield and make the investment more neg geared...

Thoughts??

 

For people with a budget limit of $350K and if they want to stay in Sydney, is there somewhere better?

I doubt the new supply could be sold at <$350K??

 

Unless they planned to move into it I can't see why it would be a good idea Sydney or not. Units are easy to buy, plenty of opportunity in other cities for that kind of money.

Here, make a weekend of it and go and buy this for under 340k: http://www.realestate.com.au/property-unit-qld-new+farm-119850141

 

I do like Art Deco and the prices in Brissy are cheaper than Sydney for sure. But there's a reason Sydney has the most expensive real estate in the nation

 

Are we here to naval gaze at the price of property though or go out and make money?

Would you be able to make money in Liverpool at the tail end of a boom? Or will you make money in the center of Brisbane over the next couple of years? The former I would say you have about a 5-10% chance the later about 50% chance. Play the odds.

 

The entry price, location and amenities are ideal for future potential.

But there is about 2x the amount of units for rent than for sale. Could be that lots of investors have been buying there recently.

 

There is definitely a shortage of quality stock on the market at present. I'm sure Nick you will find tenants.

 

there is no doubt the Warwick farm rental market has softened as i have witnessed it first hand...

up until 6 months ago you could still secure something under 300k

 

what make u think that's a good investment. 1 bed and no car space. Im almost certain Sydney 2 bed unit in Liverpool for 350 will double in 10 years where that one wont

 

Wasn't even trying... Thats was just the first thing i bumped into. 1 bed/car space is no problem for inner city units.

Lets see, character art deco building, heart of the brisbane cbd, cafe culture, brisbane poised for growth in the short to medium.

Vs

Old ugly 70's unit, in a low socio economic area over supplied with newer nicer stock in a city that has done its dash in the short to medium term.

 

will look back in 10 years and tell you both

 

Yeah but number of things will impact the growth. 1 bed and without car space.

 

Too long, come back and tell me in 2 years.

 

I've got an old 2 1 1 in Warwick Farm. About 150K capital growth thanks to the current property boom.

Prior to that the capital growth stunk.

The houso areas should be bulldozed and then I feel prices will really grow in Warwick Farm). There are street walking hookers, junkies etc that hang around and ****** the place.

You could try Cabramatta but you're lucky to find a unit under 400K now. Then there's Carramar (you'll need swimming togs when it floods!).

Might be better to go to Mt Druitt where you can still get a house under 500K oooh yeah.......

 

Campbelltown 2 bedders 300k. Rent $300/week. New 2 bedders at the 500k mark. New price point in suburb. Gives it some room to move..

In saying that, I went to New Farm 2 weeks ago and I thought it was absolutely beautiful and the prices are fantastic for the location. I reckon your dollar would go further there than Livo where they plan to build 50 towers in the next 20 yrs.

 

And New Farm is so quiet you wouldnt have issues with not having a car spot.

 

Supply will have an impact on rents but the difference between old and new would be relative. There will always be people that want to pay the lower rent instead of the higher rent for a newer one.

However the rents vary for different sections in Liverpool. The desirable sections will maintain their prices, the only thing is to get past that initial stage where there are lots of units available.

With attracting a tenant, this is where top marketing and fast response time make a big difference in securing a good tenant in a short amount of time.

I found a good tenant within a week for a 40 year old 1 bedroom, ground floor unit facing a main road at $300/week. Where as there are many 2 bedroom units around Speet St at a similar price range that are on the market much longer.

 

I will look at Newfarm, am familiar with that area as family used to live there. But I doubt it will have much choice.

 

Well I am not sure what you did, but that is a pretty good result, I noticed 1 bedders are not dis similar price wise for purchase and rent, but 300 is pretty good IMO

 

Oh sorry, Nick, I remember your doing a PM role ? Are you casting for our business ? All good, as overall, in all places and all things RE related, timely and proper response is sensible business.