2560 Postcode & Surrounds

[Piston Broke]

Not all that much movement in prices, but a few interesting convos with some people "in the know".

- Sales in the area generally slow
- Oran park considerably below expectations of sales
- Lots of new developments still waiting
- A few new developments in the 5km radius of the cbd are planned for 2011

Rental demand has been quite good, but there is a downside: it housing commission.
That's right, the HC is slowly bulldozing those stupid 70's ghettos and not building or buying.
Instead it's giving out rental subsidies. Now you know why you are getting crappy tenants who have no regard for your property.
And the market is flooded with them atm. So the increase of the rental market gave the false illusion that rents were going up because people can afford to pay more, instead it's because the gov is paying it for them.
And LLs have no clue who it is because it's the tenant's name on the paperwork.
So if your a slumlord anywhere around Sydney's outskirts, there's a good chance your properties will be the future housing commission.
And of course also trashed, inhabited by crims etc.

Welcome to the new private housing commission!

 

[evand]

This is an interesting counterpoint to Skaters assumptions (crystal ball) re outer Sydney.

There will be no growth in 2011 and little rent increases driving growth. Thats a prediction. No, it's almost a certainty.

The thing is we have a commodity boom and China will start exporting inflation. They are trying to keep it in check in their own country by recently increasing rates.

Anyway, this will cause the RBA/govt to keep upward pressure on interest rates. And when thats happening there will be no cap growth and most likely decreases in price.

Can someone (especially Skater) who believes that prices will rise in 2011/12 please state what they think will drive this growth.

Not all that much movement in prices, but a few interesting convos with some people "in the know".

- Sales in the area generally slow
- Oran park considerably below expectations of sales
- Lots of new developments still waiting
- A few new developments in the 5km radius of the cbd are planned for 2011

Rental demand has been quite good, but there is a downside: it housing commission.
That's right, the HC is slowly bulldozing those stupid 70's ghettos and not building or buying.
Instead it's giving out rental subsidies. Now you know why you are getting crappy tenants who have no regard for your property.
And the market is flooded with them atm. So the increase of the rental market gave the false illusion that rents were going up because people can afford to pay more, instead it's because the gov is paying it for them.
And LLs have no clue who it is because it's the tenant's name on the paperwork.
So if your a slumlord anywhere around Sydney's outskirts, there's a good chance your properties will be the future housing commission.
And of course also trashed, inhabited by crims etc.

Welcome to the new private housing commission!

 

[Ridin-High]

Enjoy hearing your comments PB and evand. As im debating at the moment to purchase again in C'town vs Inner north brisbane.

C'Town has higher yield and some cost synergies

Brisbane aviods adding on to my land tax bill and diverisfy, but crap yield.

Ill add more when @ home

Regards,

RH

 

[BV]

So if your a slumlord anywhere around Sydney's outskirts, there's a good chance your properties will be the future housing commission.
And of course also trashed, inhabited by crims etc

There is no chance of this happening because as a landlord these days you have a big choice of tenants and employment and reference checks are done.

In fact if you're maintaining your properties well and are asking above average rent for the suburb you generally attract better tenants

 

[evand]

Some areas (most on the out skirts of major cities) this is all pretty much all your rental applications.

This is where they reside and they have to live somewhere.

There is no chance of this happening because as a landlord these days you have a big choice of tenants and employment and reference checks are done.

In fact if you're maintaining your properties well and are asking above average rent for the suburb you generally attract better tenants

 

[Piston Broke]

There is no chance of this happening because as a landlord these days you have a big choice of tenants and employment and reference checks are done.
In fact if you're maintaining your properties well and are asking above average rent for the suburb you generally attract better tenants

It has already happened, it has already pushed prices up, it has already caused LL's and PMs much grief and the HC will pay market+ prices.
They are currently a large % of house hunters and there is no HC on their references and many have PT jobs, some will state disability pension + carer.
Quiet a few will be happy to pay more as there will be 2 families living in the house and one in the garage.
Most have no intention of owning or buying as yours is given to them for free.
How the property is maintained is of no issue, and if the rents are too high real renters will look to a better suburb or buy their own.

 

[Ridin-High]

Not all that much movement in prices, but a few interesting convos with some people "in the know".

- Sales in the area generally slow
- Oran park considerably below expectations of sales
- Lots of new developments still waiting
- A few new developments in the 5km radius of the cbd are planned for 2011

Rental demand has been quite good, but there is a downside: it housing commission.
That's right, the HC is slowly bulldozing those stupid 70's ghettos and not building or buying.
Instead it's giving out rental subsidies. Now you know why you are getting crappy tenants who have no regard for your property.
And the market is flooded with them atm. So the increase of the rental market gave the false illusion that rents were going up because people can afford to pay more, instead it's because the gov is paying it for them.
And LLs have no clue who it is because it's the tenant's name on the paperwork.
So if your a slumlord anywhere around Sydney's outskirts, there's a good chance your properties will be the future housing commission.
And of course also trashed, inhabited by crims etc.

Welcome to the new private housing commission!

Just to address some of the points you made.

- Sales Generally slow in area

* I was reading in API or YPI a recent issue that one of the larger rea agents in the area (your starr partners or dougmals) said they had record listings for the month, so your right with more listings coming on it will probably take longer to sell stock.

- Oran park sales slow.

* I haven't really investigated this myself, i have spoken to a few work mates who live in the area and they said that the prices are to high


With the new developments you speak of can you elaborate, are these just residential or some new commercial type dev's?

In regards to the rental sub's, from the agents that i have spoken to in the area they are saying its like 6-7 privatly owned homes and 1 H/C place. Which i personally feel is alot better solution, if the H/C people see the other people next to them taking abit of pride in the place they live in might rub off on them. Keeping up with the jones.

I'm currently in the process of taking a tenant to tribunial to get them booted for not paying rent, that should be done shortly and have the insurance sharks onto them.

I'm just amazed you can still buy property in the C'town area for 270k 750sqm block decent house after 5k reno and get 350pw rent
Just the land tax is T_T

Regards,

RH

 

[Piston Broke]

* I haven't really investigated this myself, i have spoken to a few work mates who live in the area and they said that the prices are to high

When people have no money the price is always too high.
When money is easily available there's plenty who will justify it to themselves.

With the new developments you speak of can you elaborate, are these just residential or some new commercial type dev's?

Residential. A few 100+ ones and many small ones <20.

In regards to the rental sub's, from the agents that i have spoken to in the area they are saying its like 6-7 privatly owned homes and 1 H/C place.

The issue is how many rentals are paid by the HC, but is not in their name.

if the H/C people see the other people next to them taking abit of pride in the place they live in might rub off on them. Keeping up with the jones.

Wishful thinking, if not delirious fantasy. These people have no intention of ever buying a home, it's given to them for free. Amongst many other benefits.
Maybe in the next generation a few may think about it.

 

[Ridin-High]

Wishful thinking, if not delirious fantasy. These people have no intention of ever buying a home, it's given to them for free. Amongst many other benefits.
Maybe in the next generation a few may think about it.

Funny you mention this, i was at a BBQ today and talking to a chap who lives in H/C because he had to give up his job/sell house to look after son with a disability. His passion is land scaping and he was telling me what he has done @ his H/C place and that the H/C people that come and do inspections every 3 months are amazed (he has done the place up).

But yeah i wouldn't hold my breathe for this happening on a large scale lol.

Probably important to remember not all people in H/C are air stealing scum buckets

Regards,

RH

 

[Piston Broke]

* I was reading in API or YPI a recent issue that one of the larger rea agents in the area (your starr partners or dougmals) said they had record listings for the month, so your right with more listings coming on it will probably take longer to sell stock.

lol Just media BS as the local paper RE section has been the thinnest in many years for a few months now.

- Oran park sales slow.
* I haven't really investigated this myself, i have spoken to a few work mates who live in the area and they said that the prices are to high

There is no infrastructure, and what's to be built is subsidized from sales making prices more expensive.
Some places also have yearly fees (just like a body corp) for "facilities".
The buyers as usual get screwed on the transaction.

With the new developments you speak of can you elaborate, are these just residential or some new commercial type dev's?

With all due respect, if there's any chance of me profiting from them no chance of me posting details.
But the info is all there for those who want to dig.

----

Commercial activity is very quiet, stores are not busy, BOS is still having trouble main st is worse, that huge building (Panjo) has been in administration for a while (more delusions of grandeur), so not much happening and a decrease in the situation.
Rents may be going up, but its because expenses are going up and tenants are subprime.

 

[Piston Broke]

Like most places, retail is very quiet.
Although there will be an Aldi soon be next to Brands on sale.

And of course still plenty of developments brewing.

 

[Piston Broke]

Sales (resi) seem to be picking up after a few dead months.
Rents are still slowly increasing in line with expenses and HC handouts.
Oran Park is below expectations, ie slow sales and price below expected.
Infrastructure works are continuously delayed.
Council is asleep at the wheel in terms of developments: all is normal lol.
Many projects only a few commenced.
ParkCentral is still a messy throufare on the way to & from the pub.
And of course the worst part of the development being multistory units is left till everything else is sold.

 

[Ridin-High]

Cheers for the local update PB.

Is their some other railway extensions planned for those parts?

Regards,

RH

 

[Bourne126]

First tracks laid for south west raillink

Sales (resi) seem to be picking up after a few dead months.
Rents are still slowly increasing in line with expenses and HC handouts.
Oran Park is below expectations, ie slow sales and price below expected.
Infrastructure works are continuously delayed.
Council is asleep at the wheel in terms of developments: all is normal lol.
Many projects only a few commenced.
ParkCentral is still a messy throufare on the way to & from the pub.
And of course the worst part of the development being multistory units is left till everything else is sold.

http://www.dailytelegraph.com.au/ne...h-west-rail-line/story-e6freuy9-1226056795205

 

[stinadaze]

Curious to see what you think of Spring Farm.... not as expensive as Oran Park that's for sure.

 

[Piston Broke]

"We will not repeat Labor's inept planning which saw families virtually stranded in new suburbs," Mr O'Farrell said.
Of course they will not leave the families holding and developing land stranded with houses to sell and not at least a promise of infrastructure!
The labour party thought they could milk those FRCs for decades, which they did of course, only pandering to the select few. Oh...hang on a sec, it's the same few again who were always capitalists anyway

Well the guy opposing the AGL plant got liberal preselection for the next elections. I guess it's going to be a good year for liberal party donations. And the newspaper no longer has it in Appin, but "south of Rosemeadow".
With this green stuff & climate fufu bandied about AGL is in for a tough battle. What most people also don't know is that the area has a huge load of natural gas underneath it which is why a plant right next to the supply make good economic sense for AGL.
I put my money on private donations to politicians though.

Guess which candidate and party won macarthur? The greenie lib who else.
And yep he won in the seat of working class people, but much stranger things have happened.
And I backed the right horse once again. Reckon I earnt myself another swig.

Curious to see what you think of Spring Farm.... not as expensive as Oran Park that's for sure.

You mean near the industrial swamp, mine and waste facility (formerly known as a tip)?
Don't know much, but sounds like a beaut place in boondockville.

As for good ole Campbelltown... well economic activity was dead before and now worse.
Even Mac Square is quiet, except for kids and parents wanting a supervised playground.
I really hope they introduce paid parking soon as they might get some customers with some money to spend.
many stores closed,BOS in admin and Panjo is dead.
I remember once having a chat to that Panjo dude, was gonna take over the world he was... good luck with that mate hope it goes well.

And Macarthur Gardens is still trying to build a public housing unit block and commuter car parking in the name of "upgrading infrastructure", yep a 400 car park next door should be great.
Also nice to see Landcom promoting putting public housing in all its forms amongst the rest as good "diversity".


PS
Next election lookout for the Piston Broke Party
That's right, vote for the Piston Broke Party for a darn good party and a happy ending!

 

[Piston Broke]

Resale values:

12/08/2011 Residence $220,000 (could be related)
14/06/2008 Residence $320,000

29/07/2011 Residence $260,000
20/05/2008 Residence $260,000

29/07/2011 Residence $320,000 (likely reno)
22/12/2010 Residence $243,000

25/07/2011 Residence $285,000
30/07/2003 Residence $275,000

20/07/2011 Residence $285,000
30/03/2007 Residence $230,000
03/05/2002 Residence $235,500

19/07/2011 Residence $195,000
26/05/2007 Residence $155,000
21/08/2002 Residence $145,000

19/07/2011 Residence $342,000 (remember that PM Rixter )
25/01/2010 Residence $272,000

18/07/2011 Residence $269,000
09/06/2009 Residence $246,000
17/12/2006 Residence $220,000

16/07/2011 Residence $380,000
04/05/2002 Residence $340,000

12/07/2011 Residence $350,000
21/08/2010 Residence $345,000
25/09/2009 Residence $326,000
03/08/2005 Residence $310,000

09/07/2011 Residence $325,000
14/02/2005 Residence $370,000

07/07/2011 Residence $292,500
07/07/2004 Residence $300,000

09/07/2011 Residence $325,000
14/02/2005 Residence $370,000

So any saying 2560 was doing great a few years ago can argue with the numbers.

 

[travelbug]

Yeah and I don't think you'd only pick the ones that supported your view either.

13 sales hardly make a convincing survey.

 

[Piston Broke]

I picked the last 13 from on the house, same story the next few pages.
Those who's research & analysis is inept and opinion based because they are too lazy to do or know better, come back with numbers and figures, not opinion.
Back to school now, trod along.

19/07/2011 Residence $342,000 (remember that PM Rixter )
25/01/2010 Residence $272,000

I did mention opportunities in 2560 in a Pm to Rixter, of the type that most people here would not call "quality real estate".

 

[Piston Broke]

This message has been deleted by keithj. Reason: personal

Maybe you should look at all the personal insults i get from others.
Not that I complain or need my nappy changed.