Go West (Sydney)

I am firm believer in counter cyclical buying and it seems to me that Sydney presents are very good opportunity at the moment especially in the less attractive western suburbs such as Mount Druitt and Penrith. Vacancy rates are almost nil which will mean good rental yield, the best we've seen in years and that will be an incentive for investors which will increase demand which in theory should drive up prices.

There are a few new developments in these areas so I'd be looking at something new close to amenities for less than $270k. Another good sign is that construction of new dwellings is slowing which limits stock which again means good news for investors. Any thoughts welcome

hi doozer
If you want to buy in alot of these areas you need to wait until a development is finished and then see if the prices come off.
yes the demand is there but 270k is alot to be paying in these areas for new.
there is alot of spare property out there and not alot of people chasing it. and it has to come onto the market at some stage.
unless there is a big shift in rates down wards or a very cheap rate given by a lender or government to move this stock the low balling is and will be the way to go.
taking 25 and 30% off is the way to go at this stage
there are alot of very interesting funding packages out there that are being offered to alot of developers and some are taking the offers.
so would I go out into the outer suburbs.
yes
am I going out into these suburbs looking.
again yes
and are there bargains there
again yes
happy hunting

I don't know if I agree with you about $270k as being a lot to be paying for new. Sure you could pay less but you would be getting less, less of everything. I would rather pay that little bit extra for position and finish and experience better rental, tax deductions and growth. Yes there's a lot of unit stock presently but not a lot of quality.

If the last cycle is anything to go buy , the rest of sydney will move a long way before Mt Druitt et al move.

cliff

Grossreal is right. New stock in the western suburbs has been dramatically reduced in price. Developers who have completed need to get the noose from around their neck as the holding costs are high. I would also be offering 25% off the list price. Blacktown valuations are coming in very low for new stock and their is an oversupply. Should be able to pick up stock around Blacktown for between $180 -$200K depending on how desperate the developer is. Plenty of desperates around at present.

hi doozer
have a read of my post on value
once you understand value and quality does form abig part of value then you will understand that its value not price to look for.
and as markets correct you will reduce price and increase value.
look for high quality high value and then go for the lower price if possible.
and you will find it

just bought 12 yr old unit west way, next to major shopping centre, and trainline for 158k will rent for $240pw and potential for moe...

good buying out there.

Nathan said:

just bought 12 yr old unit west way, next to major shopping centre, and trainline for 158k will rent for $240pw and potential for moe...

good buying out there.

Click to expand...

Excellent buy!

Where is the unit?

hi Nathan
well done.
If I was you I would do nothing reval hold and ask next door if they want to sell at the same rates.

i am still hesitant of my purchase because its a unit...

however, in the boom 2003 etc they were selling in the block for like 230k-240k

hi Nathan
I wouldn't be
its about a 7.8% return without taking out the strata fees raw data
and thats a good return
the lower end of the marketwill recover first and you should see some very good growth as long as it near a train a nd shopping and yours is so If I was you I would be very happy with the purchase.
2003 was a super hot market so would take that with a grain of salt look at what others are selling for in the area and work of those numbers not historic.
you can go to domain and chart the suburb and that will give some good ideas on the markets trends.

yeh i got rpdata, and all the data at hand, its good... just still its a unit that only reason why...

LOL