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Discussion in 'Where to Buy' started by Jeah_, 2nd Aug, 2015.

  1. Jeah_

    Jeah_ Well-Known Member

    Joined:
    30th Jul, 2015
    Posts:
    185
    Location:
    Newcastle
    I've been looking into a mixed kind of strategy of decent rental yield, mixed with capital growth. n my research of suburbs, I've been looking at suburbs that have good ratio of rental return vs median property price with good CG forecasts (according to myrpdata).

    Surprisingly (to me anyway), the suburbs that keep popping up are Willmot, Tregear, Lethbridge Park, Hebersham, Emerton, Dharruk, Shalvey etc.

    Maybe it's my history with the area, or me just being a snob, but I would have never dreamed of looking in those areas. Has anyone else looked into these areas? Does anyone have properties in these areas? If yes, how do you find the tenants? Issues?

    Thanks in advance.
     
  2. datto

    datto Well-Known Member

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    23rd Jun, 2015
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    1,391
    Location:
    Mt Druuiitt
    Jeah. Jeah, Jeah. Those suburbs you mentioned are like sweet music to my ears. Like words to a poem I once wrote to my sweetheart as a ten year old.

    Yes, yes and yes. I do own property there in that glorious land of the west. I don't like to brag but 500 % cg with 20% yield is what some people who invested at the right time are achieving.

    Choose your tenants wisely for there are wolves in sheep clothing out there. Avoid anyone in uggboots and flanno shirt claiming to be an engineer for they are surely trying to pull the wool over.

    Good luck in your quest.
     
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  3. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    14th Jun, 2015
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    Location:
    Sydney & Adelaide
    Hi Jeah. Those suburbs are good for capital growth, if you had bought there 3-4 years ago. Now its at the top of the price cycle.
     
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  4. York

    York Finance Broker Business Member

    Joined:
    24th Jun, 2015
    Posts:
    1,620
    Location:
    Sydney
    Agree with @DaveM. A few years ago they were great buys. A few years before that (6-8 years) the prices there were hard to believe they were part of Sydney. Today, they barely trail surrounding areas because as they prices of better suburbs rose buyers were priced out and then flooded those areas pushing the prices past what I think they're actually worth. I think these areas will be ones that might feel the heat when the market slows.
    From an investor point of view as @datto said be very careful with tenants. If you must invest there get the best possible PM and scrutinise the soul out of any tenant application triple checking job backgrounds and previous rental history. A friend of mine had 3 in Willmot. An experienced investor. He had a very hard time with tenants. With one actually burning the house down after receiving an eviction notice.
     
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  5. skater

    skater Capitalist Premium Member

    Joined:
    18th Jun, 2015
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    1,408
    Location:
    Sydney
    I love, love, love the West! Three recent sales, but still holding others. As with all area's, make sure you've got a good PM. It's not just the West that has sheep in wolves' clothing.:D
     
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  6. Jeah_

    Jeah_ Well-Known Member

    Joined:
    30th Jul, 2015
    Posts:
    185
    Location:
    Newcastle
    Thanks for the feedback, guys. I'm just researching at the moment, and learning. The advice I've gleaned just in the past week from this site has been invaluable, but has highlighted to me how much I don't know and how much more work I have to do.. :/
     
  7. skater

    skater Capitalist Premium Member

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    18th Jun, 2015
    Posts:
    1,408
    Location:
    Sydney
    If you're new, and looking to buy into the area, I'd suggest to wait a few years, when property is on the nose.