Liverpool NSW?

Hi guys,

New to the forum, just wanted to see if my thoughts about Liverpool right now are in line with other investors.

I see huge potential for growth even though many Sydney-siders seem to dismiss liverpool due to its demographic and reports of bad tenants. While I do not fully disagree with this, (Liverpool has had its bad moments), I feel that the development of South West Sydney will send Liverpool down the path that Parramatta will take. With the completion of the South West Rail Link + airport development at Badgerys, Liverpool will be the heart of the South West.

I am currently in the market for an oldish 2 bedroom apartment for under 450k with rental returns at about 350 to 450.

Do people of the forum agree with my views? I am eager to hear what other people think.

I have already backed out of two OTP apartments in the area as I felt they are currently a bit overpriced..
 
Hi guys,

New to the forum, just wanted to see if my thoughts about Liverpool right now are in line with other investors.

I see huge potential for growth even though many Sydney-siders seem to dismiss liverpool due to its demographic and reports of bad tenants. While I do not fully disagree with this, (Liverpool has had its bad moments), I feel that the development of South West Sydney will send Liverpool down the path that Parramatta will take. With the completion of the South West Rail Link + airport development at Badgerys, Liverpool will be the heart of the South West.

I am currently in the market for an oldish 2 bedroom apartment for under 450k with rental returns at about 350 to 450.

Do people of the forum agree with my views? I am eager to hear what other people think.

I have already backed out of two OTP apartments in the area as I felt they are currently a bit overpriced..

Hi Hibbie,

Sounds like you know the drivers of the area pretty well. My folks live out that way and i'm there most weekends - IMO there's a lot of construction going on and it'll continue for the next few years. It may keep a lid on price growth over the medium term.

You should be able to find that type of property quite easily at that budget.

In terms of growth drivers - it is quite well positioned with lots going around it. The new airport, motorways extensions and proximity to key amenities are definitely plus points.

You may be buying near the top of the price cycle though, so there may be a 'cyclical' effect working against you in the medium term. It has grown in price quite significantly over the past 24 months. I haven't lived through many cycles, but I'd guess that lower demographic areas would be the first to feel the pinch of cycle effects.

Are you comparing Liverpool with other markets? Is this for a PPOR or Investment?

Goodluck!

Cheers,
Redom
 
Hibbs, I've got an IP there, same tenant 10 years, never a prob.

Plenty of doctors n nurses wanting to rent out there as you know there's that humungous hospital. So, there's good tenants out there. Go to the hospital and ask one of the staff to put a rental notice on their notice board. Then go visit me in the loony section lol.
 
Cheers guys for the feedback.

I am looking for an IP there. datto, theres an absurd amount of apartments going up near the hospital so I am looking somewhere near the south of liverpool.

The new OTP apartments 'The Paper Mill' caught my eye, but it is quite close to the rail line. In your experiences, is such a close distance (150m around) a big problem for IPs??
 
I was in an apartment that would have been 30 metres from the rail line ( at Croyden). People get used to it.
 
...it is quite close to the rail line. In your experiences, is such a close distance (150m around) a big problem for IPs??

Providing you are not near a bend on the line or near the station (brakes/accelaration/horns) shouldn't be a problem. Most tenants wouldn't notice.
 
Cheers guys for the feedback.

I am looking for an IP there. datto, theres an absurd amount of apartments going up near the hospital so I am looking somewhere near the south of liverpool.

The new OTP apartments 'The Paper Mill' caught my eye, but it is quite close to the rail line. In your experiences, is such a close distance (150m around) a big problem for IPs??

150 metres isn't that bad - could even be attractive for renters being close to railway. That tower looks like it'll hold a whole lot of apartments.

Going by general views on previous threads - be cautious when purchasing 50 unit +, OTP stock, after a price boom.

Perhaps worth exploring something that's slightly older - could probably save 50k and avoid paying for the glamour marketing.

Cheers,
Redom
 
I work and also live in liverpool area and noticed a quite a large increase in prices over the last year and a bit. You could technically split liverpool into 2 sections the good side and the lesser of a good side. Towards nagle st , charles and speed street are probably less desirable then say Castlereagh and in Northumberland but in saying that if you got a bargain buy in the nagle street side I wouldnt let that stop you from purchasing
 
I think it was Nagle St, a few months ago, I visited an absolute cracker of a unit. Small block of about 10, less than 15 yrs old, wrap balcony, 2 bedda 1 bath, gas appliances, sold low 3s. There are some gems on that side.
 
Providing you are not near a bend on the line or near the station (brakes/accelaration/horns)

Or near where 2 lines cross in an 'X' fashion.
A friend lived near a train station and he said where the lines cross at the X it was noisy enough to push him out of his comfort zone, but the straight(ish) sections are not that noisy.

BTW, you may wish to check if the building reverberates when the trains pass.
1. This may irritate your tenants.
2. It causes more wear and tear on the buildings.

I don't live near a train line and when I've stayed at places that are, I have been woken up by the trains at night.
I'm not sure if I'd get used to it in the long term.
I'd never get used to church bells or car horns I don't think.
 
Hi

Hi this is a great Post :)

You can have good or bad tenants in both so called good and bad suburbs.

Liverpool is a interesting area.... People tend to follow trends and what I mean by this is once the area becomes the so called area to invest in their already too late.

Most of your capital growth is made when you react before the market does :)
 
Not so keen in Liverpool

I'm more on the conservative side of Liverpool as I'm interested to see how will it impact the rental market when all these buildings completed, use me as an example, me and my gf is currently renting there for $350/wk and it is a 2 bedroom 2 years young apartment/unit (sorry I do not know how to distinguish the differences between units vs apartments :p ) near Westfield, it's about 10 minutes walk to Liverpool station and 5 minutes drive to Warwick Farm station.

The owner of the unit bought it two years ago for I think around the 300k-350k mark, and while I'm un-sure how much strata he is paying, the fact is the lift doesn't work from time to time :mad:, and there are water leaking to the street constantly and gosh the ground floor stink like poo (rubbish collection station is right at the ground level) :(

I've also notice the older 2 bedroom units (red brick ones) are selling at around 300k-350k where as brand new ones are selling at around 400k-500k, I failed to see how is this going to work out to be a decent investment when the holding cost is so high once you calculate the rental income vs the interest repayment and all that strata fees etc. :confused:

We are planning to buy a property mid next year near north west area as I seriously can't stand all these drug/drunk kids/hobos splitting on the train screaming and scaring all the passengers during our night ride from the city back.......
 
I am currently in the market for an oldish 2 bedroom apartment for under 450k with rental returns at about 350 to 450.

Some great points already.

I think Liverpool has potential for the reasons already mentioned but Personally I wouldn't be buying a negatively geared property at the end of a boom. You are not only going backwards with regards to cash out of your pocket but you are unlikely to see much growth for the next 4 years.

Just my opinion.
 
Is there general consensus that the "boom" we are in, is coming to an cyclical end?

While I agree some areas have reached the peak of the current growth, the vacancy rate in Liverpool is lower than the Sydney mean.

This suggests to me that there is still demand, and with that demand the market should still grow. There are however many apartments being built right now..

As with all negative gearing purchases, the investor is banking on the capital growth of the area rather than the rental return. Though I can see why there is a cause for caution when purchasing at the end of this boom.
 
It will be interesting to see what happens to the units/apartments once all of those in currently being built stuff is on the market. Everytime I drive to Krispy Kreme in Orange Grove (prolly once a month to once every 6 weeks) and there's always something else popped up.
 
Is there general consensus that the "boom" we are in, is coming to an cyclical end?

While I agree some areas have reached the peak of the current growth, the vacancy rate in Liverpool is lower than the Sydney mean.

This suggests to me that there is still demand, and with that demand the market should still grow. There are however many apartments being built right now..

As with all negative gearing purchases, the investor is banking on the capital growth of the area rather than the rental return. Though I can see why there is a cause for caution when purchasing at the end of this boom.

Demand is only one side of the qn Hibbie - take a look at the supply side too. Liverpool has an influx of multi unit developments coming online over the next 2 years.

Plus that strength in demand is part of the cyclical growth story - its the driving force. If the market turns, the demand for IP's should slow too.

Just something to think about.
 
Is there general consensus that the "boom" we are in, is coming to an cyclical end?

While I agree some areas have reached the peak of the current growth, the vacancy rate in Liverpool is lower than the Sydney mean.

This suggests to me that there is still demand, and with that demand the market should still grow. There are however many apartments being built right now..

As with all negative gearing purchases, the investor is banking on the capital growth of the area rather than the rental return. Though I can see why there is a cause for caution when purchasing at the end of this boom.


The market is strong , but not as hot as what it has been . Not to many of the long term forum members are buying in Sydney at the moment . Our last Sydney buy was mid last year just as the local market was starting to move , but that was a downsizer . Our last ip in Sydney is over two years ago .

Personally i wouldn't be buying outer Sydney at this stage of the cycle .
I wouldn't buy outer Sydney unless I was getting close to cash flow neutral .

Cliff
 
Hey, was that Edwin St? I lived a few hundred metres further away from the line in a half-house. Great area.

I think it was Grosvenor St? I remember going over the bridge to the north side and swinging left.

It was a ground floor unit. Nice looking apartment, probally built in the late 90's. I think it was a Meriton complex and the train line was next door.

The only other thing I remember was drinking a Resches long neck there.lol.
 
Had to go to Liverpool a couple of weeks ago, plenty of new development to come and parking is a nightmare already. I believe that there are too many apartments and not enough open spaces or attractions. The council has not done enough to beautify the area and make it attractive to walk through at night or visit throughout the day.
 
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