NSW Watching the Druie Drop in Slow Motion (2020)

{Note from mods - this thread continues from here: Watching the Druie Drop in Slow Motion (2019) [NSW]}



@mickyyyy and I have been having a debate on doing a subdivision....Sydney vs thr Druie....

But also looked at this for my Maitland property but numbers are not that attractive. My personal opinion is that Druie might be hitting prices which may not be sustainable...as what happened in 2018-2019...were it did hit low 4s.

What I have seen is some areas of Sydney where there are large ethnic enclaves...it makes sense. I can't post the area for obvious reasons...but I know in some areas you can pick up a crappy house for high 6s as there is less FHB competition and and less investor competition (not enough return). Knock down and rebuild for around 550k. I have seen these multi-gen properties getting up to high mils if finished off correctly. This because 2-3 families (brothers/sisters, mother/fathers) will pool their money together to buy.

Downside is you need to put in 1.2-1.3m...for 400-500 returns...this will take about 18 months to complete.

 

I have done heaps of builds...there is no money in NSW because of the build costs.

For example...in Melbourne I can get a 4x2x2 house product about 22.5sq turnkey... on a 400 sqm for 250k. In Sydney on existing land you are looking north of 400k! On fresh land from a developer you can get it done for about 350-370k turnkey.

Surprisingly...Brisbane is quite cheap for building a product on a existing block so long as the block is relatively flat and minimal retaining. The people building on sloping blocks are spending a lot of money....you need to make a minimum if a 30% gross margin otherwise you utilize the funds elsewhere.

Skater...have you even done a feasibility? I think you should do this....I have already done this many times. Yet you make these comments...have you calculated the following: holding costs, sub-division costs, town planner costs, contingency for delays, GST on sale and structuring of sales. Get the last bit wrong..and they will withhold up to 7% of he total price of product...sure you can some of input credits back..but don't put margin scheme on the contract and you have done yourself out of 3-4% of the total value of the home!

By the way a lot of project builders won't do what you are looking to do.......in most instances these will be custom jobies...... .

The areas where it does work is in places like the Northern beaches or some of the ethnic enclaves but you better have deep pockets.

 

OMG @sash! You have a one track mind. Why dredge this up again? You are like an ever-ready bunny, relentless in your hatred of Mt Druitt.

Yes, there are project builders that will build in the area on small blocks. Yes, I did the feasibility, but it was many years ago, when I HAD a subdividable corner block, but I ended up just selling the property as it was in a trust & I didn't feel like the hassle of getting more finance through the trust, as I was in the process of trying to wind up the property part of the trust.

Obviously there will be more profit in areas like the Northern Beaches, but other areas have a much larger buy in price to go with it. Once again, you are comparing apples to oranges.

 

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No - that won't work either because you will make large profits.

According to @sash large profits are bad because you have to pay tax on them.

From what I can detect there is only one way to get ahead - buy for $150K and sell for $400K. Just keep naming suburbs where you've done this and it all works out.

 

Subscribed for the emotional ride by @sash post and his followers.

 

This looks like a fun thread......

 

All just good banter - I know @sash can take it and will dish it back out ..... and then we move to another thread !

 

OMG habibi...ya hamdilah....whats up?

Remember homework makes you a better investor....nutin to do with the Druie...

OK since you have done your home work..please let me know how the numbers stack up?

I would rather to some ethnic suburbs which are about 120k more than the Druie not just the Northern beaches. Thats all I will tell youse....

 

Mount Druitt is number oneeeeeeeeeeeeeeeeeeeeeeeeeeee!

P.s wrong title as The Druie has been growing from a few months ago...

In regards to sub division at today's prices not worth it for satellite druie suburbs but if you bought before 2013 there's good profits

 

Never said that...see people misinterpret stuff...there are places where I have over 400k in profit.

No point discussing..... too busy listing things for sale.

 

I luv it...... the thrill...almost like being shot at....

 

Yep great fun.... but some do throw their toys and have a cry...in the corner... ..... I have to bite my finger from laughing.

Just got back from Newcastle..and catching on the daily palava...almost like a soap opera around here.

 

sash i feel you worry too much mate..when are you going to say enough is enough and sail off into the sunset

 

That is the plan.... bloody hard work...selling ...buying is breeze!

Those gullible err....correction cashed up FHB will only be around for a few months...till they purchase..

Good news is it will repeat again July 1st 2020.....giddy-up!

 

May be a bit off here and definitely not wishing to add fuel.

Spent the first 26 years of my life in sydney and can tell you Mount Druggit.. whoops has to be the biggest hole known to this world.

Crime rates are insane and thanks to those rappers onefour Mt druitt is now known around the world for shootings, stabbings and well anything else you can think of.

Sure people have made money there and may make some money, but to ever think this living representation of satans armpit is ever going to gentrify then you must have been dropped on your head or better yet must be part of one of the gangs of wannabe americans roaming the streets.

Quite frankly I think the gangs are the only ones making any money out of ole Mt Drugit.

Steer clear.

 

Prices in the Druitt suburbs are edging to the $1m mark. Won't be long. Subdivisions will become more attractive. Gangs will have to move on lol.

https://www.realestate.com.au/sold/property-house-nsw-lethbridge+park-132717450

Sold for $600K!

And this property backs onto a reserve. That ain't an approved granny flat just a garage convert. The place is nicely renovated though.

 

Wonder if they used the new home owner scheme to get this..

 

@sash What's the latest habib

 

‘Couldn’t believe her eyes’: seller’s shock after her Mount Druitt property sells for $2m - realestate.com.au

Ooof!

 

All I want to say about the Druitt is : Yeee Ha! Giddy Up!