We've Done it Again!

Nice Rick,

Will be interested in where it is and why you selected that one when you're ready to post it up. Knowing your style, I'm thinking cashflow lower to middle type median price. Around $400K yielding 5% odd.

Cheers,
Michael

Following on from THIS thread.......

Well its taken a few months since my maiden Sydney IP shopping trip, however this afternoon I received a phone call from my solicitor to tell me settlement has now been effected. :)

It's a modern air conditioned 2 Bedroom Brick & Tile Villa with Remote entry Garage, in a complex of 10 other Townhouses/Villas located in South Wentworthville. Purchase price $353k.

Close to all the usual amenities people look to be near, such as Major shopping facilities (4 minutes to Westfields Parramatta), Public Transport, Arterial roads in and out of the area, high employment, education, recreational & medical facilities.

Its located in area where the Govt, Commercial, Retail and private sectors are injecting money, in a pocket under gentrification with old houses on big blocks being bowled over and either new 2 story houses being built or a small complex of villas and townhouses.

Things were delayed due to the vendor being OS on holidays and their REA lost the deposit cheque I sent them :eek: but overall things eventually worked out in the wash. Just had to focus on the big picture and not let frustration take hold.

Also secured a single lady in her mid/late 50's on a 12 month lease who has been there with her 2 cats for the past 8 years..She had found another place to rent because she didnt want to be left to try and find a place at the last minute if the new owner wanted to shift in themselves. I told her she is welcome to stay on however she will have to pay market rent as I will not be subsidising her rent like her previous land lord.

Market rent was approx $370-$380 per week however she's been paying $310 for a few years as she was a friend of the owner. She initially wanted a 5 year lease at $370 for the duration, however she didnt want to sign a lease with a 12 monthly rent review clause. I suggested she sign a 12 month lease which gave her the option to move or stay on and gave me option to still review rents.

Anyway, time for a celebratory drinks. :)

Here's a few photo's....

P.S....Michael nice guess ;)
 

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Photo's ?

You've started derinking

Dont know what happened to the first lot but I've edited them in again. :)

This bottle of bubbly is going down nice. :p

Heres a few extra shots....
 

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Hi Rick, I remember you said all your properties have > 30% land content, is it by area or by value, if the latter how do you work it out, by council rate notice for the land value ?
 
Hi Rick, I remember you said all your properties have > 30% land content, is it by area or by value, if the latter how do you work it out, by council rate notice for the land value ?

Courtyard area to be around 30% of the building foot print including court yard. Its a basic rule of thumb that eliminates multi story units and apartments that only have a balcony.
 
Congrats. I read your strategy and it makes sense to me.

May I ask why Sydney? Is it because in your opinion, it currently represents better value than other cities, or just because of diversification?

Regards,
Roberto.
 
You can't go wrong anywhere between Parramatta and Blacktown (with access to the Railways). 5-15 mins to the 2nd CBD and 45mins to CBD!
 
May I ask why Sydney?

Hi Roberto,

A few reasons in no particular order....

Sydney I believe is poised for very good short to mid term Capital Growth.

Sydney's last real peak was back in 2003/4 so it is well overdue. Prices have basically been going sideways since then. What I just paid is what comparative sales were in 2004.

Part of my portfolio big picture to minimise market over exposure risks.

Portfolio Land tax minimisation.
 
good work, Rick. you seem like you been on a bit of a purchasing hiatus lately, great to see you back in the game.

love your work, mate :)
 
That seems like an acceptable precinct you purchased in Rick

Don't know it that well myself, I hope you have done sufficient DD to ensure you will have enough tenant demand there :p :D

Well done mate. Congrats :)
 
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