NSW Watching the Druie Drop in Slow Motion (2018)

I noticed that too.

 

Ok look I was complimenting and I'm sorry if you took offense at it. Regardless you have probably been most successful in that area against what a lot of experts would recommend and even timed it perfectly for your situation. I was really only thinking of the price rather your situation. This is why I asked for your advice on the next Mt Druitt, to me I found it in Corio so let's see how it goes.

 

Frankston gone now. All the best with Corio.

 

My thoughts as well, I thought it was a perfect location, more so than Mt Druitt. It's between Geelong and Melbourne and close to Werribee and second airport. It's growth was higher than Hobart in the last 12 months as well. Its doing alright so far and no issues with tenants on 6% gross yield...

 

Look, I'm not offended by it at all & I know you didn't mean any harm. What I'm saying is that sometimes if you don't know all the facts, it's best not to comment.

 

An unlooked at side to property in Mt Druitt and the surrounding area is the commercial and industrial side (although it may belong in the commercial section of the forum). That has also done very well. The industrial areas just to the west of the shops along the railway as well as the St Marys industrial area (I think Glendenning as well but I know that area less well) have all had strong returns in terms of yield (and therefore also capital gain).

 

Be very wary about commercial / industrial in Mt Druitt area . In a down turn it gets hammered with high vacancies .

There was one complex of 20 units I know which had 19... vacant during the GFC and I saw one high yielding unit sell a couple of years prior to the GFC while the tenant ( my patient ) was in serious financial difficulties and ended up walking away ( maybe runnin*...) from the property leaving the new owner with no tenant . Very dependant on a healthy economy

Cliff

 

Yep, you do have to be very careful on who you select as a tenant. However there are businesses who have been in the area for many years (my folks ran one of them) and some places have had little in the way of vacancies (for example the property that my folks originally rented in St Marys until the early 2000s was then occupied by a garbage company and then by a chemical company - it has had minimal vacancy for 20 years - they moved to a property they developed next door and could see who moved in and out and if it was vacant over that whole period).

 

If you’ve got local knowledge fair enough .

Clif

 

Just some very positive charts, Mt Druitt houses last 10 years. From RP Data (paid subscription).

Mt Druitt area is one of the few affordable places for houses in Sydney, has transport. However if you think about what 700k could buy you 10 years ago... yes this has been a huge boom.

Re: social problems, there's many people with jobs and there's some people who are struggling in life. But if you have your 700k budget and looking to buy a house on a full block of land in Sydney, there really aren't many choices now.

700k doesn't buy a duplex in many areas so it's a strata property or a house in the Druitt area. Or commute from the Central Coast or Wollongong. I have a colleague though who just bought in the Central Coast and he has ended up working from home quite a bit - if he misses his bus and he won't be able to make his train. For example, he was supposed to be in the office at 8am for a meeting but he missed his bus. There is no option to take an alternative service that would get him to the office in a nearly comparable time, so he ended up working from home the whole day instead. But if he lived in say Mt Druitt, i'm sure he could have taken another service that could have gotten him there say perhaps 10 minutes late, which would not really be an issue.

I did ask him about cycling to the station rather than having to rely on the bus, but he says the whole bus trip is on a hill and it's freeway. No fun to ride and there's no other pathway.

 

The only posts I’ve seen suggesting / supporting logical reasons for buying in MT Druitt as a sensible place to buy relate to its affordability as the cheapest place to buy a house in Sydney as a PPOR .

As far as I was aware this was on property investment forum .

Given the massive growth over the last ten years and the perception that Sydney has peaked , AS AN INVESTMENT , I haven’t seen anything from any experienced investor on the forum who has longer term exposure to Mt Druit recommending buying there at the current time .

Cliff

 

I have to agree with you Seech.

There has been some small pull back on the cheap stuff, with some below $500k. It's not a lot of a reduction, but it's a small start. Rents haven't moved much at all, so yield isn't great on new purchases. Remember, I'm talking about the bottom end.

Like all areas, it will have it's day in the sun once again.....but I don't believe it is now.

 

I am about to sell a prop in 2770 if anyone wants a renovator

 

Yep, goes for anywhere in Sydney imo as far as buy and hold investment goes. Minimum 5 years before I would start looking again unless it is a development or value add deal, even then have to be very careful. Unless you love the thought of subsiding your tenants lifestyle...

 

Yeah but the thread is about The Druie dropping sooner and heavier and staying down longer than anywhere else, not about whether it's a good time to buy there.
If everyone's trying to get their timing right on Mt Druitt, then the focus has changed and I'd say the area will not do worse than elsewhere, certainly not worse than 'bluechip'.

 

Beejesus I am starting to agree...with ya a lot.

My accountant bought 2 houses on 250 sqm blocks in Scofields...they are 4x2x1 T/H syle properties...I believe she bought off the plan and paid about 675k each...she listed for 850k...not one taker over the last 3 weeks. I reckon...725 to 760k is the mark..so very little profit in it.

 

Few of the townhouses are quoting more than 800K in Schofields ( Altrove).

 

@sash you used to be so wise and positive in the somersoft days, talking good things about the Duie, considering Elizabeth SA as the benchmark. What went wrong?

 

Interesting.... sash at one point typed very eloquently. When did the evolution to rastafarian happen! Does having millions in equity and lots of property make that happen...

 

LMFAO - I guess thats why Sash down ramps the west so much. I can see that post is dated 23rd 2008.

Farrrkk mate - If you had bought only 3 houses in the Druitt back then for like $200k each or less you'd be up easily 2 million+ now.

Big regrets me thinks.