Parramatta Blog

Why is Parramatta Still a Favourite for Property Investors?

If you’ve been keeping an eye on Sydney’s property market, you’ve probably noticed that Parramatta consistently stands out as a hotspot for investors. But what makes it so appealing—and why does it continue to draw attention?

Let’s break it down with some numbers that show the relationship between rental income and ownership costs. It’s actually quite straightforward once you look at the balance sheet.

One-Bedroom Unit

• Price: $350,000

• Loan (80% LVR): $280,000 @ 6.99%

• Monthly Repayments: ~$1,760 = $410/week

Other Expenses (per quarter):

• Strata: $800

• Council: $340

• Water: $180
  Total: $1,320 / 13 weeks = $101/week

✅ Total Weekly Cost: $410 + $101 = $511/week
✅ Rental Income: $450/week
✅ Rental Return (Gearing): (450 ÷ 511) × 100 = 88.06%

Two-Bedroom Unit

• Price: $550,000

• Loan (80% LVR): $440,000 @ 6.99%

• Monthly Repayments: ~$2,765 = $645/week

Other Expenses (per quarter):

• Strata: $800

• Council: $340

• Water: $180
  Total: $1,320 / 13 weeks = $101/week

✅ Total Weekly Cost: $645 + $101 = $746/week
✅ Rental Income: $650/week
✅ Rental Return (Gearing): (650 ÷ 746) × 100 = 87.13%

Three-Bedroom Unit

• Price: $700,000

• Loan (80% LVR): $560,000 @ 6.99%

• Monthly Repayments: ~$3,519 = $821/week

Other Expenses (per quarter):

• Strata: $990

• Council: $340

• Water: $180
  Total: $1,510 / 13 weeks = $116/week

✅ Total Weekly Cost: $821 + $116 = $937/week
✅ Rental Income: $850/week
✅ Rental Return (Gearing): (850 ÷ 937) × 100 = 90.71%

The Bottom Line

While the rental income doesn’t always completely cover the ownership costs, the high gearing percentages—especially in the 85–90% range—highlight how close you can get to a neutral or positively geared investment in Parramatta. That’s a strong draw for many investors looking for long-term growth in a booming hub.

Written by Tommy Ha