Looking for First Property Investment in Thornton Penrith

W0rldtraveller on 17/06/2016 - 08:54
Last edited 17/06/2016 - 10:13

Hi

Im looking to purchase First Property Investment in Thornton Penrith (off the Plan) - Split level Penthouse, Level 9 and 10

2 Beds Apartment
2 Baths
1 Car Space
1 Storage

Area
Internal 98 M2
external 14 M2

Strata = $640 / qtr

Price 660,000.00

They mentioned that rental estimates will be $600-650 for 2 beds

THORNTON LIFESTYLE:
Located in the heart of Penrith.
• “Thornton delivers a new level of residential living for young buyers in Sydney’s west who are looking for quality, well-priced homes close to amenity in a great location.”
• Includes 26 one, two and three bedroom loft penthouses.
• 250 m to Penrith Train Station: 52 min trip to Central; 30 min trip to Parramatta
• Walking distance to Westfield Penrith (7 largest Westfield in Australia)
• 5 mins to Penrith High School – one of NSW’s top performing selective schools
• 6 mins to Nepean Hospital
• 9 mins to University of Western Sydney
• Surrounded by parks & recreational sporting facilities
• Penrith is 80% green space: the Blue Mountains and Nepean River are on your doorstep.

THORNTON INVESTMENT:
A strong investment opportunity.
• Penrith shows growing demand for residential apartments living close to transport, infrastructure, jobs and amenity.
• Median apartment prices in Penrith increased by 17% in 2015
• Strong rental growth of 5.5% since 2007
• 5% rental yield currently
• 15 km from four major employment centres with 100,000+ jobs
• Health and education hub = $1.5 billion investment and 13,000 new jobs
• Infrastructure investment including Badgerys Creek airport, $15 billion WestConnex
• Thornton is located 250 m from Penrith Train Station
• Walking distance to Australia's 7th largest Westfield

What you guys think, is this a good investment?

Financial

Comments

  • Ash-Say on 17/06/2016 - 10:10
    +5

    666k for 2 bedroom apartment? Is it Joke?

    I might be unaware but who would pay $650 rent for 2 bedroom apartment in Penrith?

    A 4 bedroom house with 1 bathroom and 1 garage sitting on 730m2 land just sold for $610k in St Marys so not sure why you are paying northern sydney price for Penrith.

    • W0rldtraveller on 17/06/2016 - 10:12

      The property is off the plan it will be completed June 2018 and located next to the train station (5 mins walk)

      Did you try to look in their website? The place it self located in the complex

  • [Deactivated] on 17/06/2016 - 10:32
    +1

    What is your investment strategy?
    Will you have enough cash flow to maintain: repayments/bills/unexpected events/etc.?

    The quoted rental return seems a bit high, try contacting local rental managers (real estate agents) for their opinion on rental returns.

    Have you looked at other desirable areas such as:
    http://www.realestate.com.au/property-apartment-nsw-abbotsfo…

    At the end of the day, it's your decision that you have to live with.

    Most importantly: Build and surround yourself with a good team that will support you with your investments. I have a great mortgage broker (ex accountant), solicitor, accountant and rental property managers. Rental property managers are the most important to get right or your investment may turn into a nightmare.

    Good luck.

    • W0rldtraveller on 17/06/2016 - 10:34

      after all we are looking another 2 years in the future, also all know that rental price will go up and most people start getting push to outer suburb.

      as government invest heaps of money in this suburb. maybe rental income 600 to high maybe 500 - 550

      • [Deactivated] on 17/06/2016 - 10:41
        +2

        I have investment properties so I am talking about what actually happens, NOT WHAT MAY HAPPEN IN TWO YEARS TIME. Capital gains are nice but cash flow is what will get you there.

        My advice is do your research. You will be spending a lot of your own money subsidising accommodation for somebody else. There are many risks.

        It's your money - I'm not telling you what to do with it, but in future, if you ask for advice, you should be prepared to listen even if the answer is not what you want to hear.

        • one man clan on 17/06/2016 - 10:43
          +2

          Sounds to me like the OP has already made up his mind and just wants confirmation.

          DEFINITELY DO IT YOU WILL BE A MILLIONAIRE!

        • W0rldtraveller on 17/06/2016 - 10:44

          Ok Thank you

        • W0rldtraveller on 17/06/2016 - 10:45

          @one man clan:

          I just quite confident, just wanna get second opinion,

          I have not make my mind yet

        • ykwon10 on 17/06/2016 - 10:51

          @W0rldtraveller: But you sounded like you HAVE made up your mind, just seeking for confirmation/justification to your actions.

        • one man clan on 17/06/2016 - 11:32
          +1

          @W0rldtraveller:

          IMO off the plan is a bad investment idea - you pay overs for sparkly new and then in a couple years there'll be another sparkly new place and yours won't be worth as much. Why off the plan and not an existing unit?

          Also factor in the fact that the time limit on defects is now 2 years (previously 7). You could be up for a huge special levy if there's any problems (which there will be).

          Have you thought about what happens if there's a delay and the contractor decides to use the sunset clause?

          Do people want to live in apartments in Penrith?

          Are there going to be a lot of developments that finish before yours? What about after?

        • MrBear on 18/06/2016 - 12:09
          +1

          @one man clan:
          Wow, when did it change to 2 years. That is ridiculous.

        • Deridas on 18/06/2016 - 19:31

          @one man clan:

          I agree, so many pitfalls with of the plan, especially if there are building defects and you cannot chase up developer/expensive legal bills and on the end the body corporate (ie you) have to fit the bill. I have heard of some people buying of the plan with such stories.

  • tomleonhart on 17/06/2016 - 11:12
    +3

    Would you pay $650 a week to live in a 2 bedroom in Penrith ?

    A quick search on realestate.com.au and i found many 3 bedders for rent at $350 - $500. All around 7 -8 minutes walk to the station.

    On the other hands, for $550 - $650 a week, I can rent a 2 beds in Wolli creek which is around 15 minutes into the city.

  • W0rldtraveller on 17/06/2016 - 11:36

    Thank u all for you great input

  • Mistymoo on 17/06/2016 - 12:23
    +1

    I live in Penrith and there's no way I'd pay $600-$650 for a two bedroom apartment, new or not. Honestly, I think you'd be pushing it to get $500. Seriously pushing it.

    • tomorrows_angel on 17/06/2016 - 13:33
      +1

      Completely agree with this. I have a completely renovated older style 3 bed house, 15 mins walk to the station, parks across the road, 10 min walk to the hospital or uni, very close to shops etc which is rented for $420/week.

      You can still buy 3 bed houses for around that price range, no strata, immediately available and land value. I'd be pursuing that avenue… Or even a house/land package at Jordan Springs?

    • tomorrows_angel on 17/06/2016 - 14:29

      Just had a look again. Currently the highest advertised rental in Penrith is $415, that's for a newer 3 bed apartment. The next is $400 for a new 3 bed townhouse. It's worth doing your own research.

  • Euphemistic on 17/06/2016 - 13:25

    And when they get to completion and the value of the apartment has gone up by 20% they'll stiff you and sell it to someone else while having tied up your money for all that time.

    • W0rldtraveller on 17/06/2016 - 14:03

      Yes 2 lifts

        • W0rldtraveller on 17/06/2016 - 14:24

          Thank you

          I will discuss this further with my partner

  • rigby75 on 18/06/2016 - 07:25

    Have you checked out the 2 builds happening in union road? That would be a good place to compare it to.

  • W0rldtraveller on 18/07/2016 - 16:49

    Penrith Fast Facts:

    17% price growth in Penrith in 2015
    5% rental yield
    5.5% rental growth
    Large rental market (46% of residents are renters)

    Expansion of South West Rail Link connecting to Badgerys Creek airport
    Sydney's second airport Badgerys Creek just 13km south of Penrith. Penrith is NOT in the noise zone !

    100,000+ newly created jobs within 15-20 kms

    Can anyone confirm this above?

  • Apothecary on 19/07/2016 - 21:49

    We just settled off the plan, and previously rented a brand new apartment.

    Most importantly, check the quality of the builders and their reputation. The rented property in Wentworth Point 2 bedroom with 5 minute walk to ferry and 15 walk to Rhodes station was $550 per week. This property was poorly constructed. Defects everywhere and poor quality materials. Sewage problems happened day one and poor building management. The place we just settled has similar pricing and design but quality was much more superior. Better carpet, soft close everything, double glazed windows and etc.

    • W0rldtraveller on 20/07/2016 - 09:08

      thank you for your reply

      the team as below, it seems quite experience.

      http://thorntoncentral.com.au/team/

      • Apothecary on 20/07/2016 - 09:47

        If you haven't already, I encourage you visit the other properties that they have completed. When we were making our choices, preferred the location in Meadowbank but the quality was too poor. The quality in Putney Hill was amazing but prices were too high.

        • W0rldtraveller on 20/07/2016 - 09:58

          Looking at the price surrounding, it cost around 450-500 k for 2 beds
          This guy selling for 660k, went to other properties that build by this dev, quite good.

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