Lidcombe NSW = Bubble Suburb

As I look at a few development sites around Sydney I do come across the one or two houses that have the potential for subdivision or putting a granny flat down. I trawl through almost every add on realestate.com.au and feel that after looking at what the property is selling for and what they can rent for there is definitely a bubble in some of these suburbs.


The subject property is 42 Swete Street, Lidcombe.

I like the property due to its location in reltation to the train station and the flat square sized block.

I originally looked at this property in April 2013. It was in terrible condition, it was pretty much a knock down. The downpipes didn't go anywhere and water ran under the house and into the yard, the garage was asbestos and needed replacing, the toilet was outside, mould stains from leaks, the back of the house look liked it had been retro fitted and structurally it probably needed to be re-stumped. See the below link to original photo's.

http://www.homehound.com.au/42+swete+street+lidcombe+nsw+2141/

The property went to auction and went for $650,000. A ridiculous price considering it was not liveable.

Anyways, it is now available for rent. See the transformation in the below link.

http://www.waterscarpenter.com.au/r...ouse-42-swete-street-lidcombe-nsw-21421120681

The owners have done a fair bit of work to it and it doesn't seem quiet finished however they have not had any rent for 5-6 months so they are probably rushing to get a tenant in ASAP.

Looking at what the property was and what it is now the owners would have had to spend at least $50,000 - $100,000 to fix the cosmetic issues let alone the structural ones.


Summary

Purchased $650,000
Renovation $100,000 at least
Rent asking $650 - $670.

Remember there are structural issues that will mean ongoing issues as well as original stamp duty and management fee's since they are using an agent.

Looking at the rent achievable and the cost of purchasing a liveable house I feel Lidcombe is way over priced for what you get. Many of the houses are not in walking distance to the station and the condition of them is very poor.

Lidcombe will be one of the first suburbs to fall when interest rates rise because at these prices and the returns from rent there is no way little landlords can afford the mounting costs.

Note: how bad is the agents ad and use of photos
 
Lidcombe should be bracing for an oversupply as there are about 6-7 new developments coming up over the next few years each averaging 50-100 new units. There have already been some newer completed units which are putting pressure on existing demand and I predict over the next few years will be a big rush to sell.
 
A new house (350k) on that land would go for more than a million. So, that price seems reasonable in that respect.
 
I dont see 100k+ reno at that place.. more like 25k. Nothing is more than basic quality.

Well I guess you didnt get the chance to see it before. It was shocking.

New floor boards throughout
New kitchen
New Bathroom
Installing of new toilet in laundry as the toilet was outside
House painted
Internally painted
New electricals
Atleast some new plumming as nothing worked when I was in there

That would have to be more than $25k.
 
A million bucks to live in Lidcombe? No wonder there is a housing crisis in Sydney.
Not all... but new houses are beginning to go at that rate now.

Last sat auction results:
Lidcombe 5 Platform St 4 br h $1,050,000 S
Lidcombe 46 Swete St 4 br h $1,000,000 S
 
Last edited:
Not all... but new houses are beginning to go at that rate now.

Last sat auction results:
Lidcombe 5 Platform St 4 br h $1,050,000 S
Lidcombe 46 Swete St 4 br h $1,000,000 S

LIDCOMBE will be the new strathfield. i am not kidding!!!!!!!!
 
Lidcombe should be bracing for an oversupply as there are about 6-7 new developments coming up over the next few years each averaging 50-100 new units. There have already been some newer completed units which are putting pressure on existing demand and I predict over the next few years will be a big rush to sell.

Hm.. so how does it affects House ?
The oversupply negative effect is only applicable for apartment unit not a house.
 
Lidcombe have a major train station. And proximity to cbd. 1 mill sounds reasonable. 1 mill in backtown or mount druitt that's wrong

Note 2 bed units is already selling for 650 in Lidcombe. So this house I say is a good buy
 
Ease up on the Druitt Windy. :)

Now, I wouldn't go too hard on Lidcombe. Strategically good position. Strong Asian influx. Plenty of development coz this place could boom even further (IMO).

Sure, it's expensive. But there are cheaper plots of land in the neighbouring suburb of Rookwood if interested lol.
 
Agree with windy and datto
Lidcome is v convenient, close to everything
20min train to city
10min to parramatta
DFO . Olympic Park, Costco, Bicentennial Park closeby
Not too far a drive from airport
a viable alternative to Auburn
it's not that unreasonable esp for a house

LOL re Datto's Rockwood comment
 
Lidcombe have a major train station. And proximity to cbd. 1 mill sounds reasonable. 1 mill in backtown or mount druitt that's wrong

Note 2 bed units is already selling for 650 in Lidcombe. So this house I say is a good buy

The original post was from 2013. Anything purchased in Sydney metro in 2013 is a good buy :)
 
Yes, that does make sense 2013.

So if parramatta business park is completed, I guess the area around 10-15 km will also be growing profitable as well.
 
Datto, I think you may be emotionally attached to the druitt as an investment suburb.
Are you sure it doesn't cloud your judgement?;)

I just took a quick stroll down Luxford Rd to reflect on this question. I took notice of the houses I pass, a few domestics going on , a couple of vicious staffies roaming loosely in the front yard, the aroma of skunk in the breeze.

Bobby, I...I don"t think so.
 
I dont see 100k+ reno at that place.. more like 25k. Nothing is more than basic quality.
I agree!
Well I guess you didnt get the chance to see it before. It was shocking.

New floor boards throughout
New kitchen
New Bathroom
Installing of new toilet in laundry as the toilet was outside
House painted
Internally painted
New electricals
Atleast some new plumming as nothing worked when I was in there

That would have to be more than $25k.
I still agree with DaveM! Kitchen, $5k, Bathroom $5k, Paint, cheap as chips. If you are willing to get your hands dirty, the cost isn't that much at all, really.

Datto, I think you may be emotionally attached to the druitt as an investment suburb.
Are you sure it doesn't cloud your judgement?;)

Nothing wrong with the Druitt!
 
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