Looking to add to his self-managed super fund, Eric Brown needed a low-maintenance property in an area which was going to have strong yields and experience capital growth.
“I chose to buy in Minto because it was trending upwards. At the time (in August 2013), it was still affordable for working class families but I suspected the pressure on affordable housing would soon push values up.
"My price range was below $220,000, so I was focusing on the Liverpool or Mount Druitt areas. I missed the boat with Mount Druitt and Liverpool was a bit out of my budget, so we expanded the search to surrounding suburbs.
"This unit popped up in Derby Street, Minto for under $200,000. Even the sales agent commented that few two-bedroom units were being sold at that price, so I considered myself very lucky. Because I purchased through my self-managed super fund, I was looking for a unit that needed very little money spent on renovation.
"Overall, it has been a great investment. I have not had any vacancies and it brings in $290 per week. I pay the bank $170 per week, so it generates a great little cash flow.
"I suspect the outlook for the suburb is fantastic. Families will always want to live in affordably priced dwellings close to town centres with good access to public transport, schools and employment. I think Minto will continue to grow – I can only see my investment continuing to outperform for years to come.”
Purchased: August 2013
Purchase price: $195,100
Current value: Over $230,000
Loan repayments: $170p/w