澳洲Australia property My newest purchase numbers. | Sydney


在澳大利亚 The pool at of an IP needs to be resurfaced (or so the pool doctor says), the cost was estimated to be $10K ($10,000), after recoverying from my impresssion of a cat coughing up a fur ball, it just seems far too much. Its just a standard poo I need some advice regarding a property purchase. Property - semi-detached house Bedrooms - 2 Condition - average needs internal reno to modernise Street - one of the best in suburb Location - excellent Close to schools - yes Transport - 50m


Purchase price $205,000
Rent $330pw (approx)
Reno - Nil at present (may replace bathroom later along with paint, carpet and gutters)

Comparables $260-280k.
Property next door is bigger has extension of DLUG and 2 x more beds for sale @ $349,000.

This one does have its warts having powerlines behind it etc, however this private area does have powerlines near most of the houses which are for sale on the net.

Asking price was initially $245,000.

http://www.realestate.com.au/property-house-nsw-shalvey-106867165

over 8% pa return on purchase price.  

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Nathan said: ↑
Comparables $260-280k.Click to expand...
Hiya Nathan,

Good to see you still chipping away. You certainly have tenacity.

However, doesn't seem to be up there with your normal spectacular purchases.

Know nothing about the area or the market....but it looked like 5 Freya Crescent was under offer also.

It also was a 3x1, on a slightly bigger block than yours in what looks like better condition and also under offer for 195K.

I don't quite understand your comparable range given that one appears better and cheaper.  

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Dazz said: ↑
I don't quite understand your comparable range given that one appears better and cheaper.Click to expand...

OH SNAP!!

Nah, just pulling. I am actually surprised that you can get houses in Sydney's suburbs for such a low amount... I have obviously never looked around, but I would have thought all of Sydney was over 3 hundgy by now...

Little ol' Adelaide's outer suburbs seem much pricier by comparison.  

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Next weekend I will put up a burnt out house I am going to buy! :)

Those comparables you find I actually know those houses very well. The departmet of housing have clauss on the saying one must live there for 7 years and are in a rougher area.

The 5 Freya is a bargain, and I know who bought this also, however it had every wall kicked in.

This is just a solid straight up and down modern home, I actually think its around 1990 build so depreciation would be a bonus :)

These properties are out there still but very hard to come across.  

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Nathan said: ↑
Purchase price $205,000
Rent $330pw (approx)
Reno - Nil at present (may replace bathroom later along with paint, carpet and gutters)

Comparables $260-280k.
Property next door is bigger has extension of DLUG and 2 x more beds for sale @ $349,000.

This one does have its warts having powerlines behind it etc, however this private area does have powerlines near most of the houses which are for sale on the net.

Asking price was initially $245,000.

http://www.realestate.com.au/property-house-nsw-shalvey-106867165

over 8% pa return on purchase price.Click to expand...
That's still a very solid yield and in a growth area. Not as super fantastic as your usuals, but still nothing wrong with that deal at all, most people would be wrapped with the returns considering the buy in price is quite low still.  

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I actually like these more then the regional ones.

This doesnt need anything major and is purchased below market value.

The rent is consistant, and covers expenses. It has almost gauranteed growth due to the area and its furture.

Lets look @ it this way, the banks desktop val shows $290,000 (too high) so lets assume a $205k purchase price, if I wal this place back up in 3 months time at $250,000 I will get all my capital back and the property is self sufficient based on 80% LVR.

This gives the ability to keep purchasing.  

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Nice one Nathan
Where do you find all the cash?
I should be talking to your broker...
Cheers  

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Piston Broke said: ↑
Lol, do they buy nice places in Shalvey & Bidwill?
Or are those reserved for your clients?Click to expand...
Nathan said: ↑
HAHAHAHA, Funny funny Piston....
-Do not even purchase in these areas. Unless there is a bargain, however do not see value there these days. @ $150-180k I see value.Click to expand...
Yeah, sure ...I know

Nathan said: ↑
The rent is consistant, and covers expenses. It has almost gauranteed growth due to the area and its furture.Click to expand...
Oh what a great future Shalvey has....  

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Piston Broke said: ↑
Yeah, sure ...I know


Oh what a great future Shalvey has....Click to expand...


Hi Piston,

This isnt the standard DOH stock. I do own personal properties here and feel the area has got good upside. I feel what I said in an older post is being twisted and used against me here from a different angle.

I dont think anyone will disagree this is bad buying?

I always state I will buy whatever is good value with good upside.

I see upside in shalvey over my lifetime as it has infrastructure and is getting new infrastructure.

Maybe I should just flip the property and make a tidy $40k nett?

Either way its just a good little buy/hold which is all I was stating with this thread.

Hope your well, and I was thinking of you today due to a Kudos you gave me and said as if anyone would belive your nice - Just making it public piston gives kudos at times :)  

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BV said: ↑
Nice one Nathan
Where do you find all the cash?
I should be talking to your broker...
CheersClick to expand...
Remember I was telling you a little while ago about getting finance sorted, finally got the avenues working again.  

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Nathan said: ↑
Remember I was telling you a little while ago about getting finance sorted.Click to expand...
Nathan

yes I remember and I'm sorry.
The broker told me the figures were working but the 2 lenders I tried didn't think so. I would have gone with your lender but I was trying to put the IP in my SF.

In hindsight I should have asked for more time.
Anyway, it doesn't matter now its all good experience.  

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BV said: ↑
Nathan

yes I remember and I'm sorry.
The broker told me the figures were working but the 2 lenders I tried didn't think so. I would have gone with your lender but I was trying to put the IP in my SF.

In hindsight I should have asked for more time.
Anyway, it doesn't matter now its all good experience.Click to expand...
Never too late Bill :)

If you think theres a way for finance, good chance you can still get "that" property. I have been keeping it warm, actually went through it the other day its not as bad as I thought.

Finance seems to be getting a little easier at present.

Let me know and we have a chat,
Nath.  

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Nathan said: ↑
I do own personal properties here and feel the area has got good upside.Click to expand...
Nathan, there is no reason for anybody not to look everywhere.
People i know in that area asked if I knew who you were, at the time I replied "I have no clue".
They assume that because i know many ppl i know who the "young dude from c'town with that group" was.
Why do you think they asked me? Cause I'm everywhere lol.

Nathan said: ↑
I see upside in shalvey over my lifetime as it has infrastructure and is getting new infrastructure.Click to expand...
I reckon it's going to be a long time, sure the return is ok and it will end up being CF neutral, but i think there's much better CG gold to be sifted for in good ole c'town atm where there have been changes already underway, not some day who knows when.


Nathan said: ↑
I was thinking of you today due to a Kudos you gave me...Just making it public piston gives kudos at times :)Click to expand...
lol as if anyone would believe I did that.:rolleyes:
Though I do give thanx to anyone who posts details & nitty gritties regardless of divergence, or direct opposite opinion.
And i have to spread them before i give Rixter some more.  

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I kinow that Nath is a big boy and he certainly doesn't need me to back him up, but I will give my two cents worth anyway.

The new purchase is in a private area and is hands down a better quality place than the comparable in Freya Pl which is an ex-commission place. The agency that sold the Freya Pl one has a contract with housing Dept and many of theirs are for owner/occupiers only, although not sure if that applies to the property in question.

There are many knockers that like to pull this area of Sydney down, but like Nathan I see great value. The yeild is high, which makes them easy to hold, and even though there are a few dodgy tenants around, so long as you have a good manager, there are few major issues. These properties are cash cows (yes Dazz, I know they are Resi, and they don't compare to your HUGE returns, but they are the best return you can get in resi and still be in a capital city).

I also agree that there is good value in Campbelltown as well. Likewise I hold property there and have had very good results over the years. If I could, I'd buy much more in both areas. :D  

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Nathan said: ↑
Next weekend I will put up a burnt out house I am going to buy! :)

Those comparables you find I actually know those houses very well. The departmet of housing have clauss on the saying one must live there for 7 years and are in a rougher area.

The 5 Freya is a bargain, and I know who bought this also, however it had every wall kicked in.
This is just a solid straight up and down modern home, I actually think its around 1990 build so depreciation would be a bonus :)

These properties are out there still but very hard to come across.Click to expand...
The photos on the site misrepresent the property then :eek:

PS: Thanks for posting the numbers Nathan, always an interesting read...great work  

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hey Nath / Skater

Is it generally quite easy to rent out properties of average to above average calibre in those areas?  

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jigglypuff said: ↑
hey Nath / Skater

Is it generally quite easy to rent out properties of average to above average calibre in those areas?Click to expand...
What do you mean by "those" areas? Who/what do you consider average to above average calibre?

I presume you are referring to the Mt Druitt area rather than the Campbelltown area.

Mt Druitt has several suburbs that were once the exclusive domain for Housing Department. Over the years they have sold off a lot of stock and at the moment they sell a couple each month that are exclusively for owner occupiers. They must sign a clause on their contract confirming they will be residing at the address for seven years.

Many people put down the entire area and assume that anyone who lives within the postcode 2770 is a layabout, good for nothing, trouble making dole bludger. This is not the case.

Yes, there is still a lot of Housing Department stock. Yes, there are some trouble makers, but you get them anywhere you care to look, don't you? There are some of the original single parents from around when the estate was first opened up, still living in their homes.

As for the calibre of the tenants, are you of the opinion that welfare recipents are low calibre, while those working are high calibre, because if you are, you might well have a shock comming.

Welfare recipients do not mean bad tenants. Some are, some aren't. Welfare recipients might have a little more financial stress at times. I have a long term tenant on some kind of benefit who I have never had a serious problem with. He does get a little behind from time to time, but he always catches up again. He has been in one of my IPs for around six years now, and I don't see him going anywhere anytime soon. Some of my best tenants have been welfare recipients. Paying their rent on time and looking after their homes. Some of my worst tenants have been in full time employment earning above average incomes.

So....the calibre of the tenant should be gleened by careful screening of references, not just income alone. Of course you do need to see if they can afford to pay the rent on a property, that does go without saying. I mean, you would not accept an applicant on welfare to rent something that is going to cost $1000pw, but you might if it was $300.

If you are going to play in this market, it is important to have a really good PM. Someone who is aware of what to look for and will be tough on tenants if they do the wrong thing. Landlords Insurance is a must as well. Even good tenants can sometimes go off the rails at times too, and not just in this area, it happens everywhere. You know, a couple living together with a couple of kids and the male ups & leaves. The female is left holding the baby (literally in this case) and can't make ends meet. It happens!  

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'Those areas' - I was referring to SHalvey and surrounding suburbs eg: Willmot, Hassal Grove etc.

Assume price correlates with calibre of property (location, size, quality of inside, etc), I was referring to properties that seek rent above the average/median rent for the area

Not sure where you got the impression that I feel welfare tenants are low calibre. My question was more about how tight is the rental market in the area for properties that seek rent above the area's average/median. Personally, I'm happy to take any tentant that can pay rent on time, and there are probably less risks taking on a welfare tenant coz they have a steady source of income from the government.

I have been investing in properties with low yield and as many people on the forum has pointed out you get to a point where the banks won't lend you more. So I'm looking into buying properties with higher yield and the west is an option. Obviously, in considering whether to buy an IP,one of the key considerations is how easily you could rent it out. I wanted to hear from someone who knows the area well.  

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jigglypuff said: ↑
'Those areas' - I was referring to SHalvey and surrounding suburbs eg: Willmot, Hassal Grove etc..Click to expand...
OK, Willmot is generally the place with the worst reputation, however I have a property there that has never had a problem at all. Shalvey, Lethbridge Park, Tregear, etc, are all roughly the same. I would rate them slightly higher than Willmot. Hassel Grove is better. Mostly private homes.


I was referring to properties that seek rent above the average/median rent for the areaClick to expand...
Not really sure what you mean by this. You don't get above the average or median for the area. The area as a whole commands a higher yield than properties closer to the city. Of course you can increase this with clever buying, reno's etc.

Not sure where you got the impression that I feel welfare tenants are low calibre. My question was more about how tight is the rental market in the area for properties that seek rent above the area's average/median. .Click to expand...
Ah, you missunderstand. It is a common misconception that many people have that welfare tenants are low calibre. I was just making a point, as I was unsure of your beliefs in this regards.

The market is quite tight. My rents are increasing nicely every six months. Most of the ones I have out this way have increased over $100pw in the last 3-4 years.  

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Thanks for the info, I'll take it all on board!  

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