Kellville Ridge + Area

Hi All was wanting to know what you think about the growth prospects of outer Western Sydney ie - kellyville, rouse hill, beaumont hills etc. . .

I have recently purchased a 4 bedroom + study off the plan for $535,500. Although the block of land is quite small the area has a good vibe to it with nice pool and shared entertaining area. They are also building a stack of ovals, tennis courts, netball courts and fields just 200m away from me.

I have been looking around Baulkham Hills, Castle hill and sorounding areas for awhile now however decided to stick with something off the plan in kellyville ridge. Even for $550k there isnt much out there besides from places that need alot of work, time and effort.

I was reading the paper the other week and they predict growth of 7% per anum for the next 8 years for kellyville ridge as well as Rouse Hill. Makes sense with the amount of money going into the area. Over $1bn spent on Rouse hill shopping centre. Just wondering what your thoughts are on this area. I am not a huge fan of these types of places where the houses are just "rolled out" however after awhile of looking and getting pushed out of the market by "emotional" home buyers this seemed like a good fit.

The area reminds me of suburbs like Cherrybrook 25 years ago where there was nothing there and it seem to be out in the middle of nowhere. In the short term capital growth probably wont be to crash hot because there is still a little bit of land release however hopefully once the land starts to relinquish prices will start to head up.

What are your thoughts? The median price in kellyville ridge is $500k and the rentral yield is about 5.4%
 
Not long ago Kellyville, Rouse Hill etc where seen to be in the middle of nowhere yet they have recorded strong growth. Just because there is land there doesnt mean there will be a cap on growth.
 
Not long ago Kellyville, Rouse Hill etc where seen to be in the middle of nowhere yet they have recorded strong growth. Just because there is land there doesnt mean there will be a cap on growth.

No, Sydney as a whole, generally, recorded strong growth after many years of very little gain.

:rolleyes:
 
Hi Young Gun and congrats on your purchase :)

I know Kellyville and surrounds very well- lots of new housing and with the Schofields to Rouse Hill corridor opening up with anticipated rezoning (any day now) there's certainly a plethora of building going on.
Kellyville has suffered from a lack of growth since the last 03-04 boom, as well as some bad press (poor resales, the whole McMansion suburbia vs inner city issues) but a lot of families still want to live there, don't they?!

So why is that? Despite the sporadic bad press and mocking articles that appear from time to time, with the rest of "Sydneysiders" thumbing their collective noses at people who want to live in such huge houses on tiny blocks in the middle of "nowhere" (though most of them haven't driven past Lane Cove and probably consider Castle Hill farmland!) there is a clear demand. I believe there's a few reasons:

1. The new Rouse Hill shopping centre and surrounding village has added positively to the area, as has the nearby Stanhope Gardens shopping and leisure centre etc. I've been a local and watched the area expand so rapidly, it makes my eyes hurt ;)
Such new infrastructure makes the area far more attractive (this includes schools, community centres, parklands, sporting facilities, upgrades to existing rail and bus ways) to home buyers and tenants.

2. Affordability for families to achieve comfort in lifestyle and have space for their kids to play without having to eat baked beans 5/7 nights of the week to pay for it (the Great Aussie Dream of the house and backyard is still alive and well in KVille- though the yard sizes have shrunk somewhat!)

3. So many buyers prefer NEW. Yes, after a few years they lose their "shiny-ness" but at the time, there's just something so appealing to some buyers about a brand spanking new house- where they can pick the fittings, colours etc the way they want them

4. Demographics of this area. Generally, the majority of home owners in this part of Sydney are middle income earners and feel relatively safe in the neighbourhoods. Not all of them work in the Sydney CBD either- but in nearby business centres like Norwest and Parramatta.

None of these reasons necessarily mean I believe that the area is going to boom or even achieve consistently good cap growth over the next decade (if anyone can guarantee you this, though, please get them to give me a call and I'll give them a job :D) My observations are purely anecdotal, based on my knowledge and experience in the area.
What I can tell you is that the rental demand is pretty consistent, especially for newer housing. Though my personal preference may be for more established property (preferably closer to transport links) there are lots of buyers and tenants who hate living in second hand housing. Personal choice.

Best of luck with your investment and I hope it performs admirably for you :)
 
Hi,
To add to Jacque's post, there is alot of employment opportunities out this way. Norwest Business Park is huge, and continuing to grow... there are 1000's of workers just in that little stretch of road. Also Seven Hills business park, and others in the area.
So, many people who live in Kellyville and surrounds are not going to the city to work.. they are just going down the road.
Pen
 
i still wouldnt live there :), the land of the new australians as they say.

these are the areas that will feel a crash the most if ever one was to happen. over supply of housing, poor transport links and nothing out there. this is where you have an average of 2 people in a 5 bedroom house, where you can jump from one persons roof to another, why people desire these houses is beyond me.

i would stick to more established suburbs, where the standard of housing is much better compared to the things they are building these days.
 
i still wouldnt live there :), the land of the new australians as they say.

these are the areas that will feel a crash the most if ever one was to happen. over supply of housing, poor transport links and nothing out there. this is where you have an average of 2 people in a 5 bedroom house, where you can jump from one persons roof to another, why people desire these houses is beyond me.

i would stick to more established suburbs, where the standard of housing is much better compared to the things they are building these days.

I don't see an oversupply at this stage. I'm a little further in than Kellyville, but I was looking at realestate.com.au, and every house in my suburb less than $680 000 was under contract, and it was several pages of them.

I would say there are very few homes where there are only 2 people are living. This is a family area, and there are many many activities for kids to do... everything is geared around them. So, its funny that you think there is nothing out here!!

I wonder if you've actually made the trek out to the area, or are just basing your opinions on newspaper articles. Alot of inner city dwellers make judgement on the area based on some newspaper report, or just seeing the houses from the side of the major roads.....

I was visiting a friend of mine who lives round the inner harbour, and she said something like "oh it must be nice for you to be able to see nature here"..... I have an enormous reserve/ bush land that goes for kms, right down the end of my street. Native birds and possums in the backyard.. etc etc

The thing that makes me laugh is hearing people who live in tiny terrace houses in the inner west make these comments about the houses being so close together out here. I hate the inner west suburbs.. they feel so boxed in. So, all these things are based on personal taste.

But I do agree that public transport out here is appalling. and its p**ses me off no end that successive govts fail to provide adequately for that. But the plus side is that many people work locally, so not such a big issue. The bus services are improving.

I don't see a housing crash coming any time soon in this area. There is strong growth in employment, migration, and I'm seeing some significant growth in pricing since the First home buyer rebate finished. I think alot of 2nd home buyers are now in the market, looking for houses over $500K.

Not sure why you think its the land of the new australian..... its only as multicultural as any other area in Sydney.

Pen
 
i still wouldnt live there :), the land of the new australians as they say.

these are the areas that will feel a crash the most if ever one was to happen. over supply of housing, poor transport links and nothing out there. this is where you have an average of 2 people in a 5 bedroom house, where you can jump from one persons roof to another, why people desire these houses is beyond me.

i would stick to more established suburbs, where the standard of housing is much better compared to the things they are building these days.

I live in the area and I love it! All of us work 15-20 minutes from home. If I may ask chase, whereabouts do you live?
 
I don't see an oversupply at this stage. I'm a little further in than Kellyville, but I was looking at realestate.com.au, and every house in my suburb less than $680 000 was under contract, and it was several pages of them.

I would say there are very few homes where there are only 2 people are living. This is a family area, and there are many many activities for kids to do... everything is geared around them. So, its funny that you think there is nothing out here!!

I wonder if you've actually made the trek out to the area, or are just basing your opinions on newspaper articles. Alot of inner city dwellers make judgement on the area based on some newspaper report, or just seeing the houses from the side of the major roads.....

I was visiting a friend of mine who lives round the inner harbour, and she said something like "oh it must be nice for you to be able to see nature here"..... I have an enormous reserve/ bush land that goes for kms, right down the end of my street. Native birds and possums in the backyard.. etc etc

The thing that makes me laugh is hearing people who live in tiny terrace houses in the inner west make these comments about the houses being so close together out here. I hate the inner west suburbs.. they feel so boxed in. So, all these things are based on personal taste.

But I do agree that public transport out here is appalling. and its p**ses me off no end that successive govts fail to provide adequately for that. But the plus side is that many people work locally, so not such a big issue. The bus services are improving.

I don't see a housing crash coming any time soon in this area. There is strong growth in employment, migration, and I'm seeing some significant growth in pricing since the First home buyer rebate finished. I think alot of 2nd home buyers are now in the market, looking for houses over $500K.

Not sure why you think its the land of the new australian..... its only as multicultural as any other area in Sydney.

Pen

good argument and points there. i have been there, i wouldnt make a comment otherwise, that would be ignorant.
 
st george area. now you can have your turn :)

I won't have a go at you but I'm assuming you have a lovely house with all the amenities within short distance and your work is just a few minutes away? Same here! If I work in the west, I wouldn't want to live in your area too, you know? So please keep in mind that every person has his own logical reason on why he chooses a certain area to live in. Not everyone works in the city? Not everyone wants to live in an old, dilapidated house? Not everyone can afford a house beside the beach! Ok? To each his own, I say... ;)
 
I live in the area too, we can afford to live almost anywhere really, but we've chosen this part of the Hills District as we have many friends here, our children's school is fantastic and walking distance, the streets are attractive, we live opposite a park with old trees and resident wildlife, our neighbours are mostly families of 4 or more, and we don't have a massive mortgage weighing us down.:D
We can't "walk rooftop to rooftop", our block is 580sqm and is plenty big enough, and certainly bigger than the vast majority in the inner suburbs. We are English/Australian and we choose to live in a suburb with people of many different cultures so our children grow up knowing that this is normal and they will be familiar with people with different skin or customs. Sydney in general is very multi-cultural and we embrace this. We choose to live in a suburb which has a mix of housing affordability so our children don't grow up as snobs and look down on people who are less well-off. Although it's a new area, there is a great community feel with sporting clubs, choice of pubs, good shopping centres, leisure centre, excellent schools and affordable child care. Public transport is lacking but as we work locally it's not an issue. It's a short hop to open countryside, 35-40 minutes to the city on weekends. When I visit friends in the inner suburbs I feel a bit closed-in, we don't have that feeling here.

We had to rent for a year before our home was finished, and we found that the rental market is extremely tight around here, although the yields are not as high as some places due to the high purchase values of the homes. Values seem to be on the rise again, with a block of land around the corner from us asking $410k (750 sqm) - if they achieve this price, this would be a rise of about 25% in 18 months (land only).
 
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