Critique my thoughts on a suburb

[bthk123]

Hi, new member, however have been lurking for a while.

I'm looking at a few areas to invest in my first IP, one of which is Arncliffe.

Prices here are relatively cheap, and I believe there may be opportunities to buy into an area that is somewhat overlooked.

What are you thoughts on these points i.e. are they valid/significant?

Am I overlooking anything? This is really a discussion about the area's prospects for CG generally and not any specific property.

For:
1) Close to the city and on a train line (significant)
2) Many new modern apartment developments from Wolli Creek moving into the east side of arncliffe will bring in relatively affluent students and young professionals seeking access to the city.
3) Although it is close the airport, has relatively little aircraft noise compared to more expensive areas under the north-south runway.

Against:
1) Not all trains stop at Arncliffe as it is a minor station (not that significant)
2) Probably not going to develop the 'village' atmosphere any time soon. Commercial area around the station is pretty small and has not developed.
3) Local IGA near the station is terrible, and Rockdale plaza is too far to walk.

 

[depreciator]

I reckon it's a good area with decent prospects for growth. A young bloke here at work bought a nice apartment in a 1970s 3 storey walk-up building in a quiet street close to the station.

2) Many new modern apartment developments from Wolli Creek moving into the east side of arncliffe will bring in relatively affluent students and young professionals seeking access to the city.

Not sure about this. That's Woolli Creek apartment zone has the feel of a windswept apartment ghetto. I'd say some some of the early buyers in the precinct might have lost a bit of money.

Somebody else will know the CG history of the area, median prices etc.

Scott

 

[jjestate]

I am pretty confident that there is decent growth potential in Arncliffe, esp the area thats closer around Wolli Creek/east arncliffe.

In terms of the train lines, although arncliffe is a smaller stop you also have the alternative of to use the wolli creek station which shouldn't be too far to get to if your in the borderline arncliffe/wolli creek region.

Places such as the Airport, new IKEA in tempe and the new shopping centre development (over 21000m2 of retail floorspace) and also cooks cove trade and technology park planned next to the kogarah golf course in wolli creek is going to create alot of additional job opportunities over the next few years which means more and more residential requirements. This will have a big impact on the demand and value in wolli creek and is likely to siginficantly the surrounding suburbs esp around the borderline wolli creek/east arncliffe.

the current market rent for 2 bed with parking apartments in wolli creek/east arncliffe is about $570 to $650 pw and new arncliffe developments is about $50k/$60k cheaper than wolli creek developments but it would achieve similar rental yield (5.2% or better for newish apartments).

2) Many new modern apartment developments from Wolli Creek moving into the east side of arncliffe will bring in relatively affluent students and young professionals seeking access to the city.exactly, vacancy would be quite low here, it is 10kms to CBD and wolli creek/and eastern arncliffe is already is occupied by many student and professional who studies and works in the city because it is cheaper than CBD prices, alot more residential demand will be required over the next few years throughout the development phases.

I've done significant research around the wolli creek region and it is worth looking into as a short/mid term investment opportunity if you ask me.

Jay

 

[Propertunity]

Somebody else will know the CG history of the area, median prices etc. Scott

I'm someone else!

 

[bthk123]

Thanks for the input guys, esp. the CG graph.

Had a drive through this morning and revisiting some of my thoughts.

I agree with the 'windswept ghetto' aspect of WC.The problem as I see it is the lack of commercial ammenities for Arncliffe/WC in walking distance.

I saw some references online to proposals for a shopping precint in the area but is there a definate date for that?

I don't think the airport or the new IKEA add too much TBH. Being close to an IKEA not really a drawcard. Retail employees are low income and the head office managers/professionals looking to live nearby are probably negligible in number.

There's no community atmosphere to the area, as the parklands and existing shops in both arncliffe and WC aren't that nice. Doubt it is going to change in the near future organically unless there is a big commercial development like a Rockdale Plaza.

 

[depreciator]

I had to go to Arncliffe on the weekend and went through the Woolli Creek unit zone out of curiosity. It's still pretty awful. There were amazingly few people on the street, too.

That shopping precinct has been promised for a long time - so long it almost seems like a state governement type promise. That guy I mentioned who had bought a unit in Arncliffe (away from the Wolli Creek stuff) does his food shopping in Marrickville.

I'm not sure about the 'affluent student' thing, either. Seems a bit of a contadiction.

 

[bthk123]

I guess what I mean by that is an injection of young people.

I would prefer nominally poor university students from middle class and relatively privileged international backgrounds than working class, centrelink dependent, poor migrant families, etc.

But yeah, the streets of WC are always deserted. The kebab shop opposite Arncliffe station seems to do really well, but not really a promising sign

 

[depreciator]

Yes, it's probably something that should go in property books: 'If the only sign of life in an area is the kebab shop, it should give you pause for thought.'

Eden Street is the one that bloke at work lives in. It seems pleasant - close to the station, one street back from the highway, lots of trees, low rise 70s blocks.

There are some good pockets in Arncliffe and Turrella.