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Parramatta

Discussion in 'Real Estate' started by tony, 27th Jul, 2007.

  1. tony

    tony Well-Known Member

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    For those who might have missed the snippet in today's AFR (and are interested):

    "Parramatta is now well positioned after its recent make-over and much-needed improved facilities to be truly recognised as a major CBD", said CBRE's senior manager for metropolitan investments and services.

    "Civic Place will offer Parramatta the opportunity to house major Australian and international corporations that once overlooked Parramatta as a location".

    He (rightly, IMHO) described "the long languishing regional centre of Parramatta as a "fantastic opportunity".

    Let's see if Council can stuff this up, try as they surely will.

    Tony
     
  2. Leandro

    Leandro Well-Known Member

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    I have been monitoring Parramatta and have been noticing more and more written about it. It was featured in API a couple of issues ago, and has increasingly been mentioned by the NSW premier.

    I have been monitoring it, because i believe residential prices in surrounding suburbs could be set for higher than average returns. What are your thoughts on this?
     
  3. tony

    tony Well-Known Member

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    Hi

    I would like to believe that rents (and property prices) will increase significantly in Parramatta.

    The issue of the Sunday Herald two weeks ago (in Sydney) highlighted the expected growth for all of the suburbs in Metro Sydney. The growth ratings ranged for 1 star (low growth) to 4 stars (high growth).

    Parramatta/ Harris Park/ North Parramatta - all had indicated growth rates of "11.5%+ for each year for the next five years".

    However your question was about rent - I think that rents will also increase because of population growth, transfer/ relocation of businesses to Parramatta, and the current absence of any significant residential development.

    I also maintain that the fact that Parramatta is a marginal federal seat can only be good in that both parties will be energetically competing to win it.

    But then I already own property in Parramatta so I'm biased in my thinking.

    Tony.
     
  4. Leandro

    Leandro Well-Known Member

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    Thanks for the stat from SMH.

    Do you own residential or commercial? If resi units/houses/townhouses? :)
     
  5. tony

    tony Well-Known Member

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    Hi

    Just to clarify the supplement was in one of the Sunday papers (approx 2 weeks ago). Not SMH.

    My properties are a mix of townhouses/ units across all three suburbs. No houses. All residentail. All properties have at least 2 bedrooms.

    Most are pretty old, but I'm happy with them and over 8 years, I've rarely had a vacancy.

    The last one - Parkes Street - top floor, natural sunlight, 2 bedrooms, refurbished, previously sold in 2003 for $226,500. I bought last month for $200,000. Rent $200pw.

    If only I could find more like that.

    Tony
     
  6. Leandro

    Leandro Well-Known Member

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    Thats great to hear.

    You mention that you rarely have vacancies, is this because you charge below market rents, have picked quality tenants, or due to demand?

    How has the growth been over the last 8 years for your properties?

    I am guessing you pick units/townhouses because of the price?

    I ask because the area interests me for my next IP purchase.
     
  7. tony

    tony Well-Known Member

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    Actually not great growth in the past 8 years - 33 Macarthur bought 150k, 59/61 Marsden bought $217k, 29/ Brabyn townhouse bought $260k, etc but as indicated previously (see earlier post about 2 weeks ago re article in the AFR) the growth in general has not been flash.

    I think the API article stated likewise.

    The rents are all market value. The tenants get vetted by PRD as managing agents.

    Tony
     
  8. Jacque

    Jacque Team InvestEd

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    5%+ yields aren't hard to achieve on lower priced properties, especially the ones Tony is talking about.

    I'd be careful about Harris Park however- there are good and bad parts.

    I like Parramatta myself, but would stick to units with some feature such as river views or extra space etc as there is a lot of supply, particularly in the high rise sector near Westfield.
     
  9. Leandro

    Leandro Well-Known Member

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    Thanks for your input Jacque. I have not heard the best things about Harris Park recently, especially in regards to crime.

    Have you bought any units in parramatta for any clients of yours Jacque?
     
  10. Jacque

    Jacque Team InvestEd

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    I haven't yet, Leandro, but am pretty familiar with Parra and regions.
    I believe some parts and some of the surrounding suburbs show promise for future growth.