Long story short.. I want to buy an investment property in Sydney.. my Budegt is around $800K.
Since the rental yield will be low in Sydney, I am planning to buy a property with a land size of 550sqm.. so that I can build a granny flat and get rent for it.
Any suggestions for the location which meets the above requirements
Thanks Mate, I heard Lalor park is bit dangours
im not far from Lalor pk and I would say maybe 15- 20yrs ago. Theres a few pockets of housing commision still but most of its gone.
550sqm land for $800k in Sydney? Dreaming. You'll need to look beyond Liverpool.
https://www.domain.com.au/sale/?ptype=house&price=0-800000&e…
Sure, just expand your definition of 'Sydney.'
Can't believe granny flats were seen as a preferable solution to rental crisis by politicians instead of just building new homes. House values and immigration rates have been jacked for many years now, surely you just incentivise new workers, source materials from over the world, zone land, give it public transport. We did it once when we first built all these cities what's so hard about doing it now, other than increasing supply and ending rent crisis hurting property investors?
I would not want to have an immigrant living in my backyard. End of story.
What about a couple of Aussie born and bred junkies?
Neither LOL
I would be ok with 2 female exchange students from Sweden or Netherlands.
@cameldownunder: You could give them free rent in exchange for ahem services. I'm sure that kind of arrangement exists around here.
You want to buy in an older area where they had grid style streets. Many houses built around 1950-1960 had big blocks and a rear service lane to collect the toilet pan, pre sewer connection. The rear lane is excellent for a granny flat as you can face it that way and it can be fenced off completely from front house. Be aware though that adding a granny flat doesn’t necessarily add value. You might spent $150 on the flat but you may take 150k off the value of the property as it now doesn’t have a back yard.
The value comes from a higher rental yield. It's just changes the appeal from owner occupiers to investors.
Exactly
Whist narrowing the field of prospective purchasers, which decreases the sale price. Especially in further out areas.
Do some research on sale prices and see how wrong you are.
Any of those areas likely to be very pricey because they’re closer to the CBD.
hard to find for 800
if you lucky you might find a house on a main busy rd, as they are 20% less in value,
compared to quiet streets around the corner (excluding main rd that allow high rise units as they more expensive)
you be looking at least 25 plus kms from the city, and most likely find a home that needs renovation, ie kitchen bathroom floor coverings painting etc
wish
good luck
Yeah true. As long its having connectivity to cbd .. we should be ok.. Rent around 550 for main house and 400 for granny flat
why not buy a block of land, and build 20 tiny houses to maximise your income?
my Budegt is around $800K.
with a land size of 550sqm
LOL
Maybe OP meant "NSW" instead of "Sydney"
Few blocks around Sofala going for sub 800k
Rofl
Where abouts has your research found a suitable property in your budget?
Doonside
Then that’s where you should buy.
Thanks mate, but the suburb doesn't have a good reputation
I spent my early years in Cabramatta, moved away in the 70s. We had a block which to me as a child was huge, and our parents ended up subdividing and selling a portion to the neighbours. All of the houses were built on those large blocks. You'll need to look for the older established suburbs further out to find what you're looking for.
Or consider a different city? I'm in Brisbane now, 25km from CBD and on 800 sqm block, likewise my entire neighbourhood. There are a few people doing what you want to do, putting in granny flats. Or in the high set homes, building in underneath to provide separate accommodation.
Would you even be able to build a house and granny flat on 550sqm? Surely that would be too small to accomodate both buildings.
Wouldn’t building 2 duplexes and selling/renting one be a better option?
When I checked over a year ago even out as far as Edmonson Park townhouses cost $900k.
I would say your best bet is Campbelltown. Or Wollongong or Newcastle.
You won't really increase your yield that much.
Granny will cost you the better part of $150k to $200k.
Repayments on this around $1100
Rental around $1600
But then you have to cover rates, extra insurance etc, vacant property.
You won't get an increase in value.
Seems like alot of hassle to be almost back where you started.
Blacktown, Lalor Pk