Does high density living gentrify a suburb?
- Thread starter qonyx_sydney
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Hahahaha, I may need to rethink Moorooka then.
The main drag has the usual - banks, woolworths, subway/nandos/dominos, a post office and a convenience store. Across the road we have politicians offices, a TAB, cash converters and a $2 shop plus an unemployment office and what has to qualify as one of the worst local pubs you could ask for.
There is a bit of redevelopment going on in there at least. Maybe new fitouts and some nicer more modern townhouses and apartments going up nearby will attract some higher income residents and better shops.
I really don't know if it's a terrible or a perfect example of a suburb when we're talking about gentrification of an area.
It depends, if it is Owner Occupier sububrs, mostly people have their own car so it is not a problem. But for a Renter or Investor Owened property, it needs to have that amenities to attract renters who usually live nearby public transport.
Wow, cool. Thanks for the tips and comments Rich.
I'm using this one: https://www.planningalerts.org.au/ is that the same to look for gentrification sign ?
Hi JohnHenry,
Quite a few of our properties have doubled/tripled in value over the course of the last decade.. Rents on those have also doubled & some close to tripled.
I believe we have attained that growth because early on in our investment journey we decided to target / purchase in areas that had recently been approved for or were in the planning stages for gentrification.
We looked for the following 4 flag sectors injecting money. -
Government, Commercial, Retail, Private
We discovered this ultimately uplifted & beautified the area resulting in people's attraction to it thus moving in - creating demand.
We have found this to work very well if you are looking for short to medium term capital growth so as to leverage against and build your portfolio faster.
Typically these are some of the signs we looked for where sectors were injecting money -
A/ Local/State/Federal Government. ie Major arterial roads, Govt Depts locating to area, Street Scrapping, New Public Transport, Recreational facilities, Hospitals/Medical facilities, 'Suburb Redevelopment Authorities' being formed. etc
B/ Big Multi National Retail & Commercial type companies. ie Major Shopping Centres, McDonalds Hungry Jacks, KFC, Bunnings, Harvey Normans, Good Guys, etc. These companies spend $Millions on market research before going into and setting up shop in an area. If there was no current or immediate future demand for their products and services they would not be moving in, so leverage off the back of their research.
Sources for information as part of your due diligence - You can check out all the federal/state/local government planning & development websites at this one convenient link http://www.oultwood.com/localgov/countries/australia.php
Other sources I use to gather info are from all the various big multi-national company websites, local newspapers, community news, local businesses, and people in the area.....general networking etc.
C/ Private People/Investors. ie Owner occupiers and Investors bowling over old houses then rebuilding new modern homes and redeveloping town houses / villas.
Get out and about. Jump in your car and drive around the area. Better still is once you're in your prospective area hit the streets by foot. You will see so much more on foot than by driving.
I hope this helps.
Quite a few of our properties have doubled/tripled in value over the course of the last decade.. Rents on those have also doubled & some close to tripled.
I believe we have attained that growth because early on in our investment journey we decided to target / purchase in areas that had recently been approved for or were in the planning stages for gentrification.
We looked for the following 4 flag sectors injecting money. -
Government, Commercial, Retail, Private
We discovered this ultimately uplifted & beautified the area resulting in people's attraction to it thus moving in - creating demand.
We have found this to work very well if you are looking for short to medium term capital growth so as to leverage against and build your portfolio faster.
Typically these are some of the signs we looked for where sectors were injecting money -
A/ Local/State/Federal Government. ie Major arterial roads, Govt Depts locating to area, Street Scrapping, New Public Transport, Recreational facilities, Hospitals/Medical facilities, 'Suburb Redevelopment Authorities' being formed. etc
B/ Big Multi National Retail & Commercial type companies. ie Major Shopping Centres, McDonalds Hungry Jacks, KFC, Bunnings, Harvey Normans, Good Guys, etc. These companies spend $Millions on market research before going into and setting up shop in an area. If there was no current or immediate future demand for their products and services they would not be moving in, so leverage off the back of their research.
Sources for information as part of your due diligence - You can check out all the federal/state/local government planning & development websites at this one convenient link http://www.oultwood.com/localgov/countries/australia.php
Other sources I use to gather info are from all the various big multi-national company websites, local newspapers, community news, local businesses, and people in the area.....general networking etc.
C/ Private People/Investors. ie Owner occupiers and Investors bowling over old houses then rebuilding new modern homes and redeveloping town houses / villas.
Get out and about. Jump in your car and drive around the area. Better still is once you're in your prospective area hit the streets by foot. You will see so much more on foot than by driving.
I hope this helps.
Many thanks Rixter for your suggestion and sharing your tips for investing. you've raised a truly great points that I've never thought before.
I've been looking around this website http://www.urbangrowthnsw.com.au/ so far. If it is already on the process of Gentrification, then it will be lsited on the website above.
However, sadly from the news last night, our PM doesn't plan for enahncing the road between the suburbs and the CBD anymore. I guess it will be a gloomy years ahead of us :-/
Source: http://www.smh.com.au/business/fede...iveminute-budget-summary-20150512-1mzhu0.html
Anyone can correct me if I'm wrong.
Here is a hipster cafe in the heart of liverpool http://www.urbanspoon.com/r/70/1772613/restaurant/Sydney/Ristretto-Co-Cafe-Liverpool
The plaza area has recently been improved and the council is also doing some work on bigge park. The prospect of the papermill development has also spurred some interest for cafes to copy the "grounds of alexandria" fad but it's still early days.
I see a lot of potential for the area but simply building high density won't do much. Some of the blocks which are only 5-7 years old are already starting to look a bit ghetto (between westfield and the hume highway).
In regards to employment, the old council site is being turned into an ambulance station along with training facilities.
"The new hub station at Penrith will accommodate 30 ambulances, and Liverpool, the the largest station, will house about 40 vehicles."
http://www.smh.com.au/nsw/new-super-ambulance-stations-for-western-sydney-20140617-zsa9j.html
Ok, if you've got the chance to get the Papermill factory unit OTP, would you take it or pass it mate ?
I've been approached by my Real Estate agent who told me similar supporting points to buy for long term CG in Liverpool.
lol, except buyers agent ;-) because they are working with us. Is that correct ?
Passed. there are simply to many units in the building for papermill. Look for something under 30 will be better investment
Glad to help.....additional to what I've mentioned, check out suburbs in or adjacent to Satellite CBD's spread around the Brisbane metropolitan are...
Those are high employment area's with main arterial roads in/out of the suburb, public transport hubs, major shopping precincts, good educational, medical & recreational facilities..
All the things people want to be located close by to and/or within easy commute.
I hope this helps.
I'd pass, i don't really like OTP, especially stuff in high volume.
Yes, I thought so, even if it was in highly rated area. So in this case if you were the Owner Occupier or stay in the unit itself, that doesn't really matter does it ?
Thanks once again Rixter, you're a great man, your succesful tips or story shows that with proper due diligence, investing in proerty is not a gambling but a long term game to play.
Cool, that's what I thought so.
Perhaps if you're owner occupier, it doesn't really matter. But for investment, I want the best possible asset class as possible (i.e. location, scarcity factor, rental yeild, etc)
Having few hundred apartment in the block, when it come to settlement imagine how hard is it to find tenant when 50-60% of the whole building is also advertising for rent. And in term of capital gain, what makes your unit special if there're another 100 room with similar layout in the same building.
