Does it still make sense to buy in Western Sydney?

[see_change]

http://www.realestate.com.au/property-house-nsw-tregear-114426259

"Owner occupier only".. is this a restriction set in place by council to help gentrify the area?

Not sure if this is the case here , but at one stage the housing commission in logan tried to stop investors buying their stock as they wanted owner occupiers in the area . I think they gave up when they found the REA's weren't very good at screening people and some people started buying IP's in their kids name.

Cliff

 

[skater]

No, it's not the Council that does it. It's the vendor (Department of Housing).

 

[see_change]

No, it's not the Council that does it. It's the vendor (Department of Housing).

Skater

How do they police it ? What if they buy , live in it then move out ?

Cliff

 

[skater]

Skater

How do they police it ? What if they buy , live in it then move out ?

Cliff

I have no idea.

 

[starter]

It may have more to go but too hot for me now. I've got 2 in GWS and wanted to add a few more but timing wasn't great, think I'm going to start looking elsewhere now.

 

[DaveM]

Skater

How do they police it ? What if they buy , live in it then move out ?

Cliff

There is a caveat on the title, if any rental activity is logged against the property eg registration of bond, data matching at the various departments will pick it up.

 

[travelbug]

There's a lot to spend on that place.

Did you look at it? Good cashflow even if you spent $200,000.

Owner Occupier is to give those people in housing Comm/low income etc a chance to get into the property market. About 18 months ago many were being passed in at auction. They were then listed for sale at around $180-190K. Many weren't sold then were offered to investors (for more money of course). Dept housing usually picks ones with no damage and sometimes they tidy them up first. Some they even put in new (cheap) kitchens.

You are supposed to live in them for 7 years. There's no way around the contract (some tried- not mentioning any names). Not sure how they check though. If you listed it for rent it would raise flags. Not worth it to save a few $1,000's. They could check your living address through electoral rolls etc.

 

[nhg]

You are supposed to live in them for 7 years. There's no way around the contract (some tried- not mentioning any names). Not sure how they check though. If you listed it for rent it would raise flags. Not worth it to save a few $1,000's. They could check your living address through electoral rolls etc.

I tried after (from memory) a prominent person claimed they had gotten around it. Was shot down pretty quickly.

Lesson learnt. They wouldn't give me the list of properties up for sale in the near future either, other than a blanket area. I get that from my RE contacts.

FYI, DaveM, I sent you a PM the other day.

 

[Jo1984]

pattern?

Hi,
I dont want to speculate about where to buy because I think all places in Sydney, north, south,east, west have potential but I have been noticing a pattern with house prices when I look at www.realestate.com.au (suburb profiles). Do me a favour, see if you notice this pattern to, Look up 5 suburbs from the upper north shore, ryde, eastern suburbs etc (well to do ones)and look up 5 western sydney suburbs. Compare the house prices in 2004 (lower interest rates) and 2008 (higher interest rates). Tell me when you think the best time is to invest in the western sydney suburbs? And remember its been predicted that interest rates with rise again in a couple of years.

 

[devank]

but I have been noticing a pattern with house prices when I look at www.realestate.com.au (suburb profiles). Do me a favour, see if you notice this pattern to, Look up 5 suburbs from the upper north shore, ryde, eastern suburbs etc (well to do ones)and look up 5 western sydney suburbs. Compare the house prices in 2004 (lower interest rates) and 2008 (higher interest rates). Tell me when you think the best time is to invest in the western sydney suburbs?

It would be lot easier if you can tell the answer too

 

[MsAli]

It would lot easier if you can tell the answer too

Fair question Devan!

 

[DaveM]

It would be lot easier if you can tell the answer too

The answer is maybe

 

[Edmond Dantes]

Just tell us the answer to the question, Jo!

 

[Jo1984]

Hello,
Well the pattern I see (I might be wrong) is that interest rates are more correlated with growth in Western Sydney and the Central Coast. In nearly every western Sydney area if you compare the average home price for 2004 and 2008, prices went backwards, unlike the inner city suburbs that still grew. But western Sydney/ central Coast Out perform the inner city suburbs when rates are lower. From this pattern would it be better to invest inner city suburbs now and invest in Western Sydney suburbs/central coast ones when interest rates are high? Especially since the economy is softening, and they is no real motivators behind higher prices except for interest rates? What you guys think?

 

[saiman]

Hello,
Well the pattern I see (I might be wrong) is that interest rates are more correlated with growth in Western Sydney and the Central Coast. In nearly every western Sydney area if you compare the average home price for 2004 and 2008, prices went backwards, unlike the inner city suburbs that still grew. But western Sydney/ central Coast Out perform the inner city suburbs when rates are lower. From this pattern would it be better to invest inner city suburbs now and invest in Western Sydney suburbs/central coast ones when interest rates are high? Especially since the economy is softening, and they is no real motivators behind higher prices except for interest rates? What you guys think?

analysis paralysis

 

[see_change]

Hello,
Well the pattern I see (I might be wrong) is that interest rates are more correlated with growth in Western Sydney and the Central Coast. In nearly every western Sydney area if you compare the average home price for 2004 and 2008, prices went backwards, unlike the inner city suburbs that still grew. But western Sydney/ central Coast Out perform the inner city suburbs when rates are lower. From this pattern would it be better to invest inner city suburbs now and invest in Western Sydney suburbs/central coast ones when interest rates are high? Especially since the economy is softening, and they is no real motivators behind higher prices except for interest rates? What you guys think?

My take is that the internet has changed the dynamics of the market , so there are more people for many places targeting the cheapest places in Sydney .

Cliff

 

[DennisLeung]

Starting to think that it doesn't really make sense to buy in Sydney at all now...

 

[beachgurl]

There are still some really ugly properties that are sitting unsold in some parts. You may have to think outside the square a little to make them good properties but don't lose hope. Target a few suburbs and watch them closely. You never know what may come up. Examples I've seen in my target suburb are old houses with frontages that were shops but now boarded up. If I had the borrowing capacit left there would be a couple I'd get a builder into.