[THE VAULT] HOUSE ON ‘STRUGGLE ST’ DOUBLED FROM $240K TO $440K
This three bedroom villa in Sydney’s Mt Druitt is an opportunity many would have said no to a few years ago. The investor who said yes? Well, they are about $200,000 better off for it.
MT DRUITT – YOU SHOULDN’T HAVE SAID ‘NO’ TO IT
Like so many other Sydney suburbs, Mt Druitt has undergone excellent growth over the past few years. According to Nathan, so many budding investors have chosen to stay away from the far Western Sydney suburb with the false belief that it would never grow in value – that it was doomed to stay in struggle street territory forever. Nathan’s own experience as an investor, however, has proved otherwise. Mt Druitt was where Nathan’s property investing journey began around 13 years ago – without it, he wouldn’t have the 200 plus property portfolio he has today. Capital growth has continued over the past five years, and this example from the Vault is no exception.
PURCHASED FOR $30,000 UNDER MARKET VALUE
A few years ago, this villa was purchased for $230,000 at a time when comparable sales were around $260,000. Rent was coming in at $330 per week.
CAPITAL GROW ACCELERATED OVER THE NEXT COUPLE OF YEARS
By the second half of 2015, this property was worth around $420,000 to $440,000, and rent had risen to $380 per week.
The numbers speak for themselves. This deal was not about how popular the location or about how beautiful the property, it was about how well the numbers would stack up in an area where growth prospects were strong and how much equity this would create for the next lot of purchases.
Before you say no to a location that is deemed unpopular, run down or “struggle street” think of Mt Druitt and whether you should have said yes to it after all.