Home' API Magazine : November 2014 Contents 74 n APIMAGAZINE.COM.AU n NOVEMBER 2014
DULWICH HILL, NSW
$595,000 - $630,000
Dulwich Hill is located within nine kilometres of Sydney’s CBD
and is known as an inner west hotspot. The suburb offers a rich
combination of cultural diversity and a range of cuisine with good
coffee and gourmet delis on offer. It’s serviced by the new light rail
line, a train station and is in convenient proximity
to the airport.
The property in question is a two-bedroom, one-bathroom, one
garage apartment in an older style block. It offers a small common
grass area that surrounds the building. It’s located on a quiet street
with a leafy outlook and is a short distance to cafés, schools and
nWHAT WOULD BE THE APPROXIMATE RENTAL
RETURN PER WEEK?
NV: Units like this in Dulwich Hill are currently renting for
approximately $450 per week. The purchase price should be around
$600,000. Therefore the gross rental yield is likely to be around 3.9
per cent. This seems low but the reality is that rents haven’t been
increasing over the past 12 months at the same rate as selling prices.
JP: This two-bedroom unit is very well located, in a quiet spot, on the
border of Marrickville and should easily achieve in the high $400s to
$500 a week rental range in the current market.
nWHAT ARE ITS PROS AS AN INVESTMENT PROPERTY?
N V: The main pros are the proximity to shops on Marrickville Road
and the light rail. The lock-up garage; the internal laundry; the
balcony; the reasonably modern kitchen and bathroom and the
built-in wardrobes are all pros. The unit block looks to be a 1970s to
1980s era building. As long as the maintenance hasn’t been neglected
these types of buildings were built to last and have few major issues.
It also appears to be a boutique low-rise block, which is more sought
after than the larger buildings. The street is a quiet residential, lined
mostly with character semis and freestanding houses.
JP: Though older, it appears to be a well-kept good-sized unit (78
square metres) in a smaller secure complex of just eight. With a
northeast-facing balcony and updated kitchen, air con, lock up garage
and built-in robes, it’s appealing to both investors and homeowners.
The lower strata fees, at about $668 per quarter will also assist
in managing cash flow, and the unit certainly doesn’t appear to
need work. Older units in this section of Dulwich Hill are sought
after, often for their quieter location and size, over the shinier new
products in the surrounding areas.
nWHAT ARE ITS CONS AS AN INVESTMENT PROPERTY?
N V: The low rental yield will be disappointing. It’s also unlikely to
suit investors looking for capital depreciation benefits. The outside of
the building is dated and unappealing. The vermiculite ceilings have
been painted white but they’re still exposed.
JP: Less appealing are the vermiculite ceilings and the lack of a
bath, however this wouldn’t stop me from buying here if the price
nWHAT ADDITIONAL QUESTIONS WOULD YOU ASK
N V: I’d ask the agent whether there are any problems with the unit
or the building and why is the owner selling? I’d also ask how much
Achieving that unique mix of finding the right property, in the right location and at the
right price are the keys to investment success. Four buyers’ agents share their criteria for
securing a stellar investment so you can do it too. DINAH LEWIS BOUCHER [@DinahBoucher]
ou usually have to pay these professionals for their time and
knowledge. Good buyers’ agents are the property hunters
who scrutinize countless listings in search of that one great
property on behalf of their clients. As we all know, ‘good
property investing means you make your money when you buy,’ so
it pays to get it right. So what do you look for? What features make
a property a great buy as opposed to a regretful purchase? If you’re
searching for that rare property to be the next successful notch in
your portfolio, then this story is for you. In API’s ongoing series of
Open for Inspection, two agents dissect one property currently on
the market and give us all the juicy details about why they think it’s a
‘walk’ or ‘talk’ investment opportunity.
OPEN FOR INSPECTION n Dulwich Hill, NSW and Northcote, Vic
Links Archive October 2014 December 2014 Navigation Previous Page Next Page