Campsie gentrification?

[Williamyuan]

G'day, everybody!
What do people think about campsie's potential for gentrification? It's borderline inner-west, decent shopping street currently full of too many bargain fashion sort of places but with some trendier looking restaurants etc starting, demographics here are low socio-economic, apparantly used to be mostly Korean and Lebanese but wealthier chinese moving into the area apparantly, buildings here are ugly Greek-style looking houses, but many being rendered to look nice, and quite a few off the plan developments starting to be sold around here, which are the first new buildings to be built in the area. Maybe the council has improved their development stance? Canturbury is pretty slow for developments I've heard. Being close to lakemba etc, the train lines always have dangerous looking people on them, proximity to lakemba could be a problem? The yields here seem to be all negative, so wondering about cap growth potential?

 

[NPS13]

Either no-one agrees with you or they're trying to keep it a secret.

 

[aroe]

I think it is well on the way to gentrification.

Maybe a few years away yet, but I think it is a very good bet. It's ~ 15km to the CBD, on an excellent train line, close to the M5, and close to amenities like hospitals and shopping centres. Trendier places are starting to pop up, and there is an increasing amount of cafes - always a good sign.

I like this area for medium to long term, Campsie, Wiley Park, and even Punchy.

My next IP will be somewhere in this region.

Cheers.

PS: As for yield, it seems to be better west of Campsie. Wiley Park etc, properties are much cheaper, but the rents are excellent.

 

[depreciator]

Yep, Campsie will do well. There are some ugly pockets of units you want to avoid. But there are some solid, original houses there. Of course, they're not cheap and as you say the yields aren't great - so they're a cap growth punt.

the train lines always have dangerous looking people on them,

I catch that same train from the city, but get off at Marrickville. The dangerous people must all get on the train after I get off.

 

[aroe]

Yeah, I don't really agree that the Bankstown line is 'scary'.

Every line has its undesirables, but the times I have been on the Bansktown line to the city, it has just been city workers silent relaxing prior to / after work.

 

[sash]

I have a unit in Campsie (2 brm)....bought it for 163k in 2002....now it is over 350k....it is under rented at about 330pw. Have had the same tenant for now 10 years.

Plan to increase the rent to $350 soon.

I think Campsie has excellent potential.....

 

[Williamyuan]

As for the ugly units mentioned, it seems like some people have taken some render to an old ugly unit and made it look quite decent, have to track down the owners and ask them about it. Must be quite hard to organize that with other unit owners..

 

[Elstupido]

Why would you think Lakemba is dangerous? In fact, the area has had a good cg and rental yield.

 

[Williamyuan]

I don't personally think it's dangerous, but most people I have spoke to seem to think it is, which gives me the feeling that capital gain in lakemba would have to be linked to increasing yields, less likely to be pushed into negative geared territory through emotional ppor purchasers? I'm not sure. One one hand,the predominantly Islamic population deters people from other cultures from living here, (which is also true in other places such as hurstville but rich Chinese immigrants and less well to do Islamic immigrants seem to have very different effects.. There don't seem to be wealthy Islamic business people pushing prices up) but on the other hand, perhaps Islamic business people in Australia are attracted by the convenience of mosques etc and are likely to remain here after becoming more successful, improving status of lakemba? Interested to hear from people who have done more due diligence in lakemba area about whether there is good cap growth potential there too or more of a yield play. I have seen more construction and renovation projects around west area of lakemba so maybe good renovation area?

 

[Elstupido]

I know someone who bought a 3 bedrooms townhouse in lakemba around 2008 for early 300k, it was recently sold for 440k.

most 2 bedrooms units priced below 200k about 4 years ago. Now, you hardly find anything below 250k.

Lakemba is the most desirable suburb amongts certain ethnic group. This has driven the price up. Even if you compare with a nicer looking suburb such as bankstown, the rental demand and price are higher.

 

[Elstupido]

Anyway, why do you think that all muslims are poor? There are some that very successful as builders or traders.

 

[Williamyuan]

I don't think all Muslims are poor, one just gets that impression walking around in some areas. But certainly in business many do well. 'An honest and trustworthy merchant will be raised with the prophets, the truthful and the martyrs'.- Koran
One just doesn't see the number or Mercedes driving around that one sees in areas with different demographics.
Although that could well be because of this one 'do not squander one another's wealth in vanities...'

Anyway, I was asking about lakemba, not trying to argue a specific point. As you've done we'll and are optimistic about the area, I should probably look into the area further.

 

[aroe]

South Western Sydney, specifically Bankstown, Lakemba and surrounding areas, is pretty much a Mercedes Benz mecca.

There is money in the area, although I know a lot of people wonder if it is always legitimately obtained.

 

[Williamyuan]

Hmm. Is there a north sydney equivalent for those moving on up, or do they hang around and buy/ build a better house in the same area?
Eg hurstville is for young Chinese couples, then once their careers take off they move on up to chatswood or north sydney?
Actually, elstupido has already answered that question, sorry.
With lakemba looking quite dodgy compared to it's popularity, does this make it a good place for cosmetic renos?..