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On Friday the 16th of August, four members of the Positive Real Estate team camped out overnight in a Penrith estate to secure the last available land releases in Western Sydney.
Land releases in Western Sydney are becoming increasingly rare, as current housing can’t sustain the growing population. RP Data released figures today that revealed Sydney’s property prices have grown 5.4 per cent in the last quarter, making Sydney Australia’s top performing suburb in terms of dwelling values. This is excellent for property investors as tenants are willing to pay a lot more to secure a rental home. Real estate investment company, Positive Real Estate (PRE), works closely with RP Data, ** and ** to find out which areas are outperforming their peers. The company spends hundreds of thousands of dollars each year to gain insight into what markets are booming, so their clients can get the maximum results from their property purchases.
Two members of PRE’s acquisitions team, Damien Lee and Paul-David Oosthuizen, have been watching the Western Sydney market for a while. After watching property values rise exponentially over the past few months due to limited supply, they decided it was time for clients to jump in.
Oosthuizen comments on the demand, “Plenty of ‘existing’ properties are being sold at open homes over weekends, with people signing contracts on the spot, and some people even paying over listing price in the more desirable suburbs.”
According to RP Data, 80% of auctioned properties were sold over the weekend.
Melody Haines, Mentoring and Events Co-ordinator at PRE, and Damien Lee arrived at 9am on Friday morning to secure the first two lots.
“There were already seven lots taken [out of 35] with about ten people waiting around.” Haines said. “Some had been camping out for five days!”
Once the team had put their names down to secure the lots, they weren’t allowed to leave the premises or they’d lose their priority. “Regulations are very strict and you are not permitted to leave the site – there was a Security Guard to ensure your presence at all times!” Haines stated. “They did a role call every hour to make sure you were still in line.”
“At the last land release, people camped at the sales office for two days to secure land. We had to be onsite by 5am on the Saturday, so we chose to camp out for one night.” Lee explains.
Positive Real Estate sent down another two employees to secure lots for their clients, who’s EOIs had come in last minute.
“At 5pm on Friday afternoon we had another EOI come in for another lot!” Haines explains. “The contract management team had organised a Statutory Declarations form and another person arrived to secure the land by 6pm.”
The excursion for the team had been successful. By 12pm on Saturday the 17th of August, the Positive Real Estate team had secured four of the 35 registered lots in Caddens Estate.
“By 10am, names were called down the list with ‘Sold’ stickers handed out like hotcakes and smiling faces everywhere.” Melody beamed. “Almost all 35 lots went on the day – so the camp out was well worth it!
“They are 357.5m2 lots that are priced at $245,000. The build we’re going to do on this is a 205m2 home, which will consist of 4 bedrooms, 2 bathrooms, 2 living areas and a double lock-up garage. The builder is Murphy Homes. There will be a high level of finishes, everything from Caesarstone bench tops, stainless steel appliances.
It’s a full turnkey fixed price package, ready to rent.
“If all goes to plan, the packages will come in at sub-$500,000.” Damien explains. “It’s heading towards a $600,000 market out here in the Western suburbs at the moment. There’s great opportunity to get some great capital growth and great equity gains to move on forward.”
Rents for similar properties are renting for $530, according to the current rentals on www.realestate.com.au, which puts the rental yield at 6% – a great cashflow property for investors.
RP Data recorded capital growth of 7 per cent in Sydney’s properties and project stunning growth of 10 per cent per annum.
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