Baulkham hills capital growth ???

[getrich]

Hi,

Recently I have been looking closely to hills suburbs especially baulkham hills. Market is really moving fast there. There is lots of competition because of first home buyers I guess.

Looking at the history of the suburb it doesn't gave much of capital growth in last 5 years. Just wondering why suddenly there are many buyers/sellers in market. May be because baulkham hills is one of the most affordable area ATM. 550k can buy you decent property and any property near junction would be convenient for transportation. Its nice family oriented suburb. But despite many positives it didn't gain much of CG. Why?

Your feedback would be greatly appreciated.

Thanks

 

[Propertunity]

Looking at the history of the suburb it doesn't gave much of capital growth in last 5 years.

5 years is way way too short to be looking at growth over a full cycle. A full cycle usually takes between 7 - 12 years in Australia. If you look at most suburbs in and around SYD you'll find it peaked in 2003/4 then has been flat (or slightly neg or slightly positive) until 2008. Then you'll see (unless you are the ABS) some gains in 2009. This is fairly typical of most cycles. CG is steep in the last couple of years of a full cycle.

Just wondering why suddenly there are many buyers/sellers in market.

Mmmm a small $14K cash giveaway thing called the FHOG perhaps?

But despite many positives it didn't gain much of CG. Why?

Lots of positives does not equal CG. CG does not move in a linear fashion (mostly).