Old Vs new Side Glenfield

[tang]

hi guys

i recently put a deposit down for a new land+house package in glenfield estate as an investment for 575k. i saw some older, similar style but smaller new single storey houses in ingleburn for 630k so this seemed pretty reasonable.

i was wondering what your thoughts were on this area and suburb in general?
i think the new woolies they will build 5 mins drive away and train lines will add value in the long term however, i would love to hear other peoples experiences with investing in glenfield.

how do u guys feel about buying in the older side of glenfield as well? i see a few townhouses which look extremely affordable at 350k. do you think this side will eventually clean up?

thanks in advance guys!

 

[tang]

Hi all
Further to the above, I feel like I am confident in terms of cash glow and renting this out , having looked at the market , however cap gains im unsure about. The property is small and there will be even more releases in Glenfield estate next year. Any thoughts or advice would be appreciated

 

[qonyx_sydney]

Hi Tang,

I'm a little biased as i live in the Vista estate but here are my thoughts.

- The old part of Glenfield has larger blocks and if you drive around you will see alot of Knockdown Rebuild which is an indicator that demographic is changing to a more affluent as these houses must be circa 350k+ for building alone
- The old part of Glenfield has pockets of government housing which subsequently has a lower socio economic demographic as a result
- The new part of Glenfield is noticeably different and I have noticed that properties for sale here don't last long on the market
- The new part of Glenfield will take quite a while to finish (as there are undeveloped properties in the middle) so subsequently it will feel like a 1/2 finished estate until Atlantic Boulveard connect in the middle
- One of the main unfinished areas will be a community park, playground, basketball court and BBQ areas which is planned to be in the area where Atlantic Bvd is still unconnected
- Generally the Glenfield estates are highly sought after (ie. take a loooik look at realestate - supply/demand metric)
- Once the estate is completely finished i expect that the estate will come much closer to median values in Holsworthy/Wattle Grove
- Another indicator of growth is the number of retail outlets that are popping up in the close vicinity (Aldi, Woolworths, El Modo Chicken)

From an investment perspective i think generally the whole of Sydney has reached it's peak and think that Glenfield whilst not right at the peak, is very close to it so think that you may be paying a premium right now but provided your gross yield is good and you plan in hanging onto this, you should do well in the long run.

Regards,
Q

 

[qonyx_sydney]

how do u guys feel about buying in the older side of glenfield as well? i see a few townhouses which look extremely affordable at 350k. do you think this side will eventually clean up?

In this part of Sydney i think you should focus more on house w/land. The median price of the townhouse has probably only moved $50k since we first moved into the area circa 2010

 

[SWS]

I have a townhome in Vista too ... 3, 2, 1 on 299sqm purchased July 2012 $399K; a local real estate agent is selling these rapidly in the $530-$550K price bracket. In fact had an out of the blue offer to sell at $550K if contract agreed to within 24 hours of phone call. Definitely more than a $50K gain ... I have no issues at all with mine and am very happy I made the decision to buy there. I think it has now peaked but I will keep through another cycle before deciding what to do from there.

 

[Redom]

I have a townhome in Vista too ... 3, 2, 1 on 299sqm purchased July 2012 $399K; a local real estate agent is selling these rapidly in the $530-$550K price bracket. In fact had an out of the blue offer to sell at $550K if contract agreed to within 24 hours of phone call. Definitely more than a $50K gain ... I have no issues at all with mine and am very happy I made the decision to buy there. I think it has now peaked but I will keep through another cycle before deciding what to do from there.

Congrats - amazing results!

Hmm i'm not so sure about whether new is better though - the other 'older side' has some large blocks that can become a lot more 'premium' once all the new 'shinny' stock comes online and begins to age.

 

[SWS]

Thanks Redom.

That was my very first IP purchase and was purchased with all the funds I had (small amount) from my divorce. At the time I was just plain scared of making a mistake and really just wanted to buy something with the money that wasn't going to cost me a bundle to maintain and was going to be easy to rent - which it was - I had someone in there within 2 days of listing. Same people still there going into their third year.

I have since gone on to buy an older home on a bigger parcel of land which I've reno'd with the view to releasing equity in the new year. With the way Glenfield has performed I am in a good position to add at least 1-2 more properties next year.

I have learnt alot from that first purchase and also from reading the forum.

 

[Redom]

Well played SWS. Definitely - love hearing others experiences (especially the positive!) through the forums.

 

[qonyx_sydney]

I have a townhome in Vista too ... 3, 2, 1 on 299sqm purchased July 2012 $399K; a local real estate agent is selling these rapidly in the $530-$550K price bracket. In fact had an out of the blue offer to sell at $550K if contract agreed to within 24 hours of phone call. Definitely more than a $50K gain ... I have no issues at all with mine and am very happy I made the decision to buy there. I think it has now peaked but I will keep through another cycle before deciding what to do from there.

When i quoted the 50k movement it was in relation to the old side of glenfield.. older 2br townhouses used to sell for ~$290k and now sell for ~$350k

I would also be a little conservative with the current market price vs. bank valuations..

My PPOR(Vista) in the current market would probably sell for circa $730k+ 4br, 3bath, study, 2 living, 1 rumpus, alfresco (above average finish). Subsequently I was expecting a bank valuation in the order of this and was disapointed when it came in at $680k. (bear in mind this cost about $580k in 2010 - [ex stamp duty] to build)

This can make it difficult to set expectations on how much equity you can draw down to purchase that next property.

You may not have a problem but just keep that in mind.