Strike gold in Sydney's Western Suburbs

Strike gold in Sydney's Western Suburbs

By Phillip Tarrant | 11 July 2012

tarrant tnI received a press release a few days back from Raine & Horne which confirmed something we spotted some time ago.

Blogger: Phillip Tarrant, editor, Smart Property Investment 

According to the agency, in the wake of the May and June 2012 interest rate cuts, Raine & Horne St MarysSt Marys, NSW St Marys, TAS is reporting that close to 90 per cent of homes in the Nepean region, in Sydney’s west, are being secured by astute investors.

We picked up a 2 bedroom ex council housing property on a corner block in St Marys in August last year for $215,000. After a reno of $17.5k agent valuations indicated a sales price of $280k. We decided to sit on the property and have now had stable tenants in paying $320 per week since October, giving us a yield of 7.15 per cent – not bad.

According to Peter Diamantidis, sales consultant at Raine & Horne St Marys, while rate cuts are helping to drive up demand for local homes and investment yields, investors are also recognising the region’s affordability and low vacancy rates.

Mr Diamantidis believes that tenant demand is a critical factor contributing to the Nepean region’s low vacancy rates, which I’d certainly agree with. More importantly, however, and the release addresses this, is that property is affordable out in the Nepean if you find the right place, and this is attracting investors from near and far.

With good yields, a low buy in price and the opportunity for capital growth considering development, population shifts and government investment, Sydney’s West is a pretty good bet right now.

It’s well represented in our portfolio – ie St Marys, Mount Druitt and Cambridge Park – and worth taking a look at if you’re seeking a good cash flow play, with view towards long term growth.


About Phillip Tarrant
PhillipTarrant webPhillip is a media professional as well as an active property investor. He has over 10 years’ experience reporting on the mortgage and property markets and has worked extensively with Australia’s leading mortgage lenders and brokers as a corporate communications and public relations consultant. As a property investor Phillip advocates the principals of research, due diligence and surrounding yourself with the right team to make informed and educated property investment decisions. As well as being editor of Smart Property Investment, Phillip sits on the Board of the Property Investment Professionals of Australia (PIPA), the peak industry body for the property investment industry. He also sits on the Board of Publishers Australia, which represents best practice, innovation and professionalism in publishing.  These two positions offer Phillip insights and awareness to the latest issues, activities, techniques and best practice principals across both industry sectors and ensure Smart Property Investment remains focused on delivering quality content to its readers.

About the author

Phillip Tarrant

Phillip Tarrant

Phillip Tarrant is executive editor – Real Estate at Momentum Media. He is also an investor with a large property portfolio.

He leads the content strategy and corporate growth for a range of market and business intelligence platforms at Momentum Media, including Smart Property Investment – the authoritative voice for Australia’s property investment community.

As head of the Smart Property Investment Podcast Network, he also steers the largest network of property podcasts in Australia, which collectively generates nearly 2 million downloads every year.

There are over 2.6 million investment properties in Australia, with over 2.1 million Australians (or around 8 per cent of all Australians) owning one or more investment properties. A vibrant and critical sector for... Read more

Strike gold in Sydney's Western Suburbs
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