Outer inner west of Sydney

[neK]

LOL, i was editing my post to include stats.... and included the same stats you have.

Except i got mine from http://localstats.qpzm.com.au/stats/nsw/sydney/canterbury-bankstown/strathfield

 

[neK]

The median rent in Wiley Park is $295 per week

If you are successful in collecting the rent

 

[belvoir]

All good, sounds like you want the price of strathfield/croydon park/ burwood etc to fall so you can buy in.

These people buying houses in strathfield for $1m+, say interest rates increase by 5%, that's an extra $50,000. People here still aren't worried because they have that much disposal income.

There's a reason why when Today Tonight / A Crappy Affair run stories about "mortgage stress" suburbs you listed don't make it into the show.

Keep waiting

Here are some more stats seeing you love quant

• 62% of the people living in Blacktown are employed full time, 24.3% are working on a part time basis. Blacktown has an unemployment rate of 7.8%.
• The main occupations of people from Blacktown are Clerical and Administrative Workers 17.7%, Professionals 15.8%, Technicians and Trades Workers 14%, Labourers 11.9%, Machinery Operators And Drivers 11.7%, Sales Workers 9.3%, Community and Personal Service Workers 9.3%, Managers 7.6%.
• The median individual income is $507.00 per week and the median household income is $1174.00 per week.
• 26.6% of homes are fully owned, and 35.3% are in the process of being purchased by home loan mortgage. 34.5% of homes are rented.
• The median rent in Blacktown is $320 per week and the median mortgage repayment is $1907 per month.

• 56.9% of the people living in Strathfield are employed full time, 32.1% are working on a part time basis. Strathfield has an unemployment rate of 6.1%.
• The main occupations of people from Strathfield are Professionals 33%, Clerical and Administrative Workers 14.8%, Managers 12.3%, Technicians and Trades Workers 10%, Sales Workers 9.6%, Community and Personal Service Workers 7.8%, Labourers 7.3%, Machinery Operators And Drivers 2.5%.
• The median individual income is $548.00 per week and the median household income is $1470.00 per week.
• 33% of homes are fully owned, and 26.1% are in the process of being purchased by home loan mortgage. 36.7% of homes are rented.
• The median rent in Strathfield is $420 per week and the median mortgage repayment is $2500 per month.

brisbanebud can you afford an additional 5% basis points on top of your interest repayments, by my calculations that's an additional $500 a week out of your pocket of just interest if you used a 20% deposit.

Also I don't want to buy in those outer inner western suburbs, why spend $1,300,000 there when I can buy this:

http://www.realestate.com.au/property-house-nsw-brighton+le+sands-116575883

or

http://www.realestate.com.au/property-house-nsw-gladesville-117426307

or

http://www.realestate.com.au/property-house-nsw-balgowlah-116441107

 

[Scott No Mates]

If you are successful in collecting the rent

Not as difficult as the adjoining suburbs of Lakemba, Roselands or Punchbowl.

 

[Scott No Mates]

If you are successful in collecting the rent

Not as difficult as the adjoining suburbs of Lakemba, Roselands or Punchbowl.

There must be a lot of porkies included in those stats otherwise there would be a large number of well below market rents out in most suburbs. Seriously, in Haberfield with a median repayment of $2,600/mth and rent at <$1,600/mth owners would be going backwards at $12,000/yr on rent alone (VG land values in the suburb are over $1m, so you can add a hefty land tax bill and another $2k for rates).

 

[devank]

Also I don't want to buy in those outer inner western suburbs, why spend $1,300,000 there when I can buy this:

http://www.realestate.com.au/property-house-nsw-brighton+le+sands-116575883
or
http://www.realestate.com.au/property-house-nsw-gladesville-117426307
or
http://www.realestate.com.au/property-house-nsw-balgowlah-116441107

Eg: 21 Archbald Avenue, BRIGHTON-LE-SANDS NSW 2216
Land Size: 474 sqm
To Sydney - Car 16min (no traffic) - Public 47min
To Parra - Car 40 min (no traffic), Public 1:30
To Liverpool - Car 30 min (no traffic), Public 1:46
To North Ryde - Car 30 min (no traffic), public 1:30

Generally floor area alone is about 474 sqm in Strathfield
Travel time to any major employment center is about 30-40 mins from Strathfield.

This is what I wrote in another post when somebody asked why pay so much for this area.

Few more +ve points.. Only few mins away from
- cycle ways - I generally cycle to Olympic park with my kids
- good Tennis courts (Cintra park, Strathfield RSL, Greenlease & Dean street)
- Flemington market
- good swimming pools (Enfield, Olympic Park & Ashfield)
- Good Library (Homebush)
- many childcare centres
- Very good primary schools - Homebush West Public, Homebush public & South Strathfield public
- Private schools : Meriden, Trinity, Santa Sabina, MLC (Burwood), St Patrick's College
- Average (may be better than avg) secondary schools - Homebush boys, Strathfield girls
- Australian Catholic University
- 20 mins train to all employments centres (Parramatta, City, Livepool or North Ryde ) - Changing jobs isn't a problem for both of us.
- 1 Buddhist temple, 1 Hindu temple and many churches
- Good food (Strathfield- Korean, Homebush - Indian, Homebush West - Chinese)
- Hospital and other medical facilities
- Retirement villages
- Golf course
- Awesome Christmas light set ups

-Ve point:
Away from water.

Disclaimer:
1. I live in this area

 

[brisbanebud]

Thanks devank.

Exactly my points, I work for Roads & Maritime, I have to go to North Sydney, Paramatta & Burwood locations, all of them in less than 35 mins. I could see some of my colleagues struggling for hours in Sydney traffic.
I have two kids who go for art class & chess (in Burwood), Tennis(Strathfield RSL), Soccer in Homebush , swimming in olympic park and tution, all of them in 5 to 10 mins drive.

 

[Scott No Mates]

-Ve point:
Away from water.

Wrong side of the harbour

Disclaimer:
1. I (don't) live in this area
2. I grew up in the area

 

[knightm]

Good stats scottnm

The one that matters for mine is the percentage of homes fully owned vs being purchase.

All those that fully own are blissfully unaware of problems with interest rates.

20-35% purchasing in inner west with mortgages

Compare this to say kellyville with 57% purchasing. Mortgages might be a bit smaller but compare this with incomes and you reach mortgage stress on a suburban level.

The Last nasty hit was worst in the outer new estates where mum and dad are both working to pump into the big new mortgage. One just needs to loose a job for a month or 3 and they are into forfeit.

I see no reason to think that formula has changed.

 

[see_change]

Good stats scottnm



The Last nasty hit was worst in the outer new estates where mum and dad are both working to pump into the big new mortgage. One just needs to loose a job for a month or 3 and they are into forfeit.

I see no reason to think that formula has changed.

Actually the place that got the most front page coverage in the Sydney GCF coverage crash was Mosman . Significant drops in Price, Multiple multimillion dollar mansions on the market at the same time with only a handfull of bargain hunters around . There were numerous jobs lost in the upper end of town . I was at a parents dinner at knox about a week after it hit and everyone was talking about who had lost their job and people were swapping " war stories " of how much they'de lost in the market . Palm beach is only just recovering and much of the upper northern beaches has only just started to recovery .

Not sure who had the biggest percentage drop , but the upper end of town was badly hit in the GFC.

Cliff

 

[knightm]

Actually the place that got the most front page coverage in the Sydney GCF coverage crash was Mosman . Significant drops in Price, Multiple multimillion dollar mansions on the market at the same time with only a handfull of bargain hunters around . There were numerous jobs lost in the upper end of town . I was at a parents dinner at knox about a week after it hit and everyone was talking about who had lost their job and people were swapping " war stories " of how much they'de lost in the market . Palm beach is only just recovering and much of the upper northern beaches has only just started to recovery .

Not sure who had the biggest percentage drop , but the upper end of town was badly hit in the GFC.

Cliff

Fair call. I guess those whose money is closely tied to the stock exchange can also be in distress pretty quickly.

 

[Propertunity]

...... but the upper end of town was badly hit in the GFC. Cliff

I do recall mid-GFC the top end of town (upper most quartile) copping a 20% hit, while in the same suburb the cheapest properties (lower most quartile), were in some cases going UP by 5%.

There were opportunities that paid off for the brave who were going against trend and buying. I know we had clients buying beach houses for close to land value only as brokers and bankers had to sell to fund margin calls etc.

 

[Scott No Mates]

In many cases the first things to go were the lifestyle investments ie holiday houses at Palm Beach. They rigidly held on to their city assets/ppor.

 

[belvoir]

They rigidly held on to their city assets/ppor

Big assumption there friend. Almost like investors buying on 2% yields hoping for capital growth to save them from bone crushing interest repayments.

 

[see_change]

Big assumption there friend. Almost like investors buying on 2% yields hoping for capital growth to save them from bone crushing interest repayments.

Big assumption there friend .

Interesting reaction by long term members to this thread , by a newbie , who really hasn't shown they have any insight in to the mind and finances of IP investors . Only someone who says their is a better way . Invest in child care centres .

Reminiscent of one ex poster who ridiculed anyone who didn't invest in commercial .

Friend . If you don't understand it , why comment , when your initial comments only portrayed your ignorance about residential investing . Stick to your child care centres . You obviously know SFA about residential property investing .

Are you just here to stir , or here to learn ? Most are here to learn .

Cliff

 

[belvoir]

Big assumption there friend .

Interesting reaction by long term members to this thread , by a newbie , who really hasn't shown they have any insight in to the mind and finances of IP investors . Only someone who says their is a better way . Invest in child care centres .

Reminiscent of one ex poster who ridiculed anyone who didn't invest in commercial .

Friend . If you don't understand it , why comment , when your initial comments only portrayed your ignorance about residential investing . Stick to your child care centres . You obviously know SFA about residential property investing .

Are you just here to stir , or here to learn ? Most are here to learn .

Cliff

I think residential property is a very good play, my concern is just when interest rate rises what will happen to people with high leverage.

I think residential property is a great vehicle to store wealth made from other ventures.

Do you condone the strategy that requires people to go into debt and rely purely on capital gains as the only way to make a return?

 

[Scott No Mates]

Big assumption there friend. Almost like investors buying on 2% yields hoping for capital growth to save them from bone crushing interest repayments.

A few years in sales during the gfc (in my area) saw the numbers of listings drop from 3 year average of 150 sales in the area to《60 per year. Yields were increasing (as value of sales dropped). Investors weren't getting out in these suburbs it was the sell before they were forced, those who were seeing through their strategies and the day to day churn (births, deaths & divorce).

There was downward pressure on interest rates.

Many of those buying were going to demolish (cheap at $1.2-1.4m for a knock down), spending upwards of $600k for a Metricon house and rentals over $2,500/wk. The rental market is slightly softer now at this end of the market.

 

[see_change]

Do you condone the strategy that requires people to go into debt and rely purely on capital gains as the only way to make a return?

It's worked for me . So far , made our money from capital growth . Cash flow has helped up pay the holding costs of the debt but my income has helped cover the difference in two periods , now and in the early 2000's . Now a Nice little nest egg. Once we've made capital growth , we've used that to pay down debt .

I believe timing is critical but many people do things differently .

Cliff

 

[belvoir]

It's worked for me . So far , made our money from capital growth . Cash flow has helped up pay the holding costs of the debt but my income has helped cover the difference in two periods , now and in the early 2000's . Now a Nice little nest egg. Once we've made capital growth , we've used that to pay down debt .

I believe timing is critical but many people do things differently .

Cliff

Pure definition of speculation not investing.

Well done.

 

[Scott No Mates]

.... my concern is just when interest rate rises what will happen to people with high leverage.

Let them learn from their mistakes & don't go for high leverage if you don't want high risk.

Do you condone the strategy that requires people to go into debt and rely purely on capital gains as the only way to make a return?

This is up to the investor to decide upon their strategy. They are the only ones who determine their risk profile, whether they require cashflow or prefer to chase capital gains