NSW Alexandria/Mascot as Investment?

We are considering buying a 2 bed unit as an investment property near Gardener road in Alexandria. This is not the most hip end of town and is more Mascot than Alexandria. Has anyone experience in this area either living, renting or investing? Do you think the area will give good long term return or will it stay as industrial as it is now?

 

I work there and I’ve been watching area growing since pre Olympics development of Rail network. I am not against the idea but before you make decision ask yourself:
1) Is area overdeveloped? (too many units)
2) How many units are vacant at this point of renting cycle? (Sydney has very low vacancy rates, things can turn around in the future)
3) Would YOU live in your unit and commute to the city?
You can let 2bd unit to single person or professional couple. If this is your preferred demographics that’s fine but would family with small kid/s find themselves around the place, school, shopping and all other essentials? Most importantly how do you see area in 10-20 years? Do you see any potential in capital gains in the future given the scale of development in the area?
Supply/demand.

 

Alexandria has been on Residex's Best Rent Report in recent times and is also well placed to Sydney's CBD to benefit from further growth, if purchasing the right property. Try to stick to smaller blocks or, if wanting newer in a highrise, one of the units with a point of difference ie: extra bedroom, outdoor space, more storage, courtyard on title etc. From what I've heard, rents are strong and with consistent demand so 5% yields shouldn't be a problem. Historical growth has also been good, at 6%+ and with a unit median of under $400K it's still affordable for most investors and first home buyers.

 

I live in one of the new units in Mascot. I like the convenience it gives me, but I don't know how much potential it has in terms of investment.

The units are being built on former industrial part of the town. So if you want to buy older units or houses it will be far from Mascot Station but close to buses on Botany Road.

There is a future plan of the area by City of Botany Bay Council. According to that document, it plans to develop Bourke Street, where Mascot Station is, as major road rather than Botany Road.

In Gardners Road, there is a development by Meriton called Aero. It's been there for a while.

In Mascot there are couple of employment centres: Electrolus, TNT etc.