Parramatta VS Castle Hill

[tonyc00]

Hi Paul

I was curious about your comment that "The plans there (North Parra) are huge".

Can you elaborate with brief details. I know that eventually something will be done with the prison, and the NSW Health complex, but is there anything specific on the horizon.

Not that I would be buying anywhere in Sydney at the moment but just curious.

Thanks

Tony

 

[JohnHenry]

How do unskilled people afford 750k+ 2br apartmt
skilled workers can barely afford that

Easy, from their parents overseas.

After that overcrowd rental like in Sydney CBD for cashflow if the rent is too expensive. Migrants can afford to share like that to survive the high cost of living.

 

[sumterrence]

Easy, from their parents overseas.

After that overcrowd rental like in Sydney CBD for cashflow if the rent is too expensive. Migrants can afford to share like that to survive the high cost of living.

The rich 2nd generations are so wealthy that blow your mind, I went to a track day few weeks ago, and there were a group of 20s kids driving:

McLaren
Ferrari 458 Special - brand new 1 week old car
Audi R8
GTR35
Brand new BMW M3
Benz AMG (S63 custom painted in glossy/mirror steel colour that I almost blind my eyes from the sun reflection from the paint)

The Ferrari also managed to run off the track and got stuck in the sand because the car was too low it was really hard to pull it back out....wasted about 30mins of my track time.....

And I don't even want to mention their nationality............

 

[windyzz]

The rich 2nd generations are so wealthy that blow your mind, I went to a track day few weeks ago, and there were a group of 20s kids driving:

McLaren
Ferrari 458 Special - brand new 1 week old car
Audi R8
GTR35
Brand new BMW M3
Benz AMG (S63 custom painted in glossy/mirror steel colour that I almost blind my eyes from the sun reflection from the paint)

The Ferrari also managed to run off the track and got stuck in the sand because the car was too low it was really hard to pull it back out....wasted about 30mins of my track time.....

And I don't even want to mention their nationality............

Lol didn't know there are car enthusiasts here in the forum too
Awesome

 

[kamchatsky]

Hi Paul

I was curious about your comment that "The plans there (North Parra) are huge".

Can you elaborate with brief details. I know that eventually something will be done with the prison, and the NSW Health complex, but is there anything specific on the horizon.

Not that I would be buying anywhere in Sydney at the moment but just curious.

Thanks

Tony

I think Paul is talking about this:

http://www.urbangrowthnsw.com.au/wo...ts/parramatta-north-urban-transformation.aspx

 

[JohnHenry]

The rich 2nd generations are so wealthy that blow your mind, I went to a track day few weeks ago, and there were a group of 20s kids driving:

McLaren
Ferrari 458 Special - brand new 1 week old car
Audi R8
GTR35
Brand new BMW M3
Benz AMG (S63 custom painted in glossy/mirror steel colour that I almost blind my eyes from the sun reflection from the paint)

The Ferrari also managed to run off the track and got stuck in the sand because the car was too low it was really hard to pull it back out....wasted about 30mins of my track time.....

And I don't even want to mention their nationality............

I know how does that feels mate and I can guess it.
But for the sake of multicultural reason it shouldn't be discussed here I guess.

 

[Tash_85]

How can there be so many rich chinese investors... seriously?

Call me naive, but what are they doing to be so rich?? It's not like just a handful of wealthy businessmen... its so many that prices are being driven to ridiculous prices in Sydney.

Please can anyone enlighten me and let me know what these overseas chinese people are doing to become so rich that they can afford million dollar houses for their kids? I'm clearly in the wrong job or doing something wrong.

I want a piece of the pie haha.

It cant all be drug money... can it?

 

[sumterrence]

How can there be so many rich chinese investors... seriously?

Call me naive, but what are they doing to be so rich?? It's not like just a handful of wealthy businessmen... its so many that prices are being driven to ridiculous prices in Sydney.

Please can anyone enlighten me and let me know what these overseas chinese people are doing to become so rich that they can afford million dollar houses for their kids? I'm clearly in the wrong job or doing something wrong.

I want a piece of the pie haha.

It cant all be drug money... can it?

They were all the capitalist back in the 70s 80s when China's labour value starting to get recognized by the globe and realize that they are so under valued. Hence anyone that run a business no matter how big or small or what type, they all become multi billionaire by providing their labour power to the world hence everything now a days are made in China.

Same as China shares too, back in the 80s you can pretty much close your eyes and pick your lucky number and it will return massively for you. not too sure if that's the case anymore...

 

[JohnHenry]

How can there be so many rich chinese investors... seriously?

Call me naive, but what are they doing to be so rich?? It's not like just a handful of wealthy businessmen... its so many that prices are being driven to ridiculous prices in Sydney.

Please can anyone enlighten me and let me know what these overseas chinese people are doing to become so rich that they can afford million dollar houses for their kids? I'm clearly in the wrong job or doing something wrong.

I want a piece of the pie haha.

It cant all be drug money... can it?

Or it could be that they've pooled all their family money in, so that the children can have a roof on their study time here in Australia.

A drug money cannot go into Australia easily since most of the drug money is cash in hand ;-)

 

[Paul@PFI]

How can there be so many rich chinese investors... seriously?

Call me naive, but what are they doing to be so rich?? It's not like just a handful of wealthy businessmen... its so many that prices are being driven to ridiculous prices in Sydney.

Please can anyone enlighten me and let me know what these overseas chinese people are doing to become so rich that they can afford million dollar houses for their kids? I'm clearly in the wrong job or doing something wrong.

I want a piece of the pie haha.

It cant all be drug money... can it?

You need to understand Chinese families. Kids support their parents - No such thing as chinese aged care !!

When a parent owns a property its not "theirs" in our western sense. Its the family home. Their kids home is the future home too. Parents often sell down and live with kids. If they do this the Australian Govt allows them to live here....They don't draw a pension and avoid aged care.

Much / most of the $ flowing to kids is the parents $. The name on title means nothing at all. Out of the almost 2B chinese there are plenty of multi millionaires. Own a HK apartment and you may be a millionaire. If you think Sydney is overpriced sit in the shoes of a chinse person who has seen prices quadruple in five years in some regions. Growth is driving value up fast.

For wealthy Chinese from HK, Macau and mainland etc the idea of having a western country to live in if it all goes pear shaped is gold. Mainland parents experienced poverty, starvation and persecution in the 1960-80;s. HK and Macau are still unknowns. Communism today is way different to what it was. The parents are terrified of the old days returning. They want their kids to prosper and get great education and build a lifeboat.

 

[JohnHenry]

You need to understand Chinese families. Kids support their parents - No such thing as chinese aged care !!

When a parent owns a property its not "theirs" in our western sense. Its the family home. Their kids home is the future home too. Parents often sell down and live with kids. If they do this the Australian Govt allows them to live here....They don't draw a pension and avoid aged care.

Much / most of the $ flowing to kids is the parents $. The name on title means nothing at all. Out of the almost 2B chinese there are plenty of multi millionaires. Own a HK apartment and you may be a millionaire. If you think Sydney is overpriced sit in the shoes of a chinse person who has seen prices quadruple in five years in some regions. Growth is driving value up fast.

For wealthy Chinese from HK, Macau and mainland etc the idea of having a western country to live in if it all goes pear shaped is gold. Mainland parents experienced poverty, starvation and persecution in the 1960-80;s. HK and Macau are still unknowns. Communism today is way different to what it was. The parents are terrified of the old days returning. They want their kids to prosper and get great education and build a lifeboat.

+1 for that

Yes, that's true. Hence, some suburbs in Sydney is always overflowing with those people. like in Hurstville, Chatswood, Eastwood, Burwood, Ashfield and Sydney CBD chinatown.

and in Wollongong as well since they have University of Wollongong and also the largest Buddhist temple in the Southern Hemisphere (Nan Tien temple).

Once their kid is eligible to sponsor their parent to come here, it is going to cost AUD $ 50k per person or wait for 10 years for the non paying visa.

 

[XMW]

You need to understand Chinese families. Kids support their parents - No such thing as chinese aged care !!

When a parent owns a property its not "theirs" in our western sense. Its the family home. Their kids home is the future home too. Parents often sell down and live with kids. If they do this the Australian Govt allows them to live here....They don't draw a pension and avoid aged care.

Much / most of the $ flowing to kids is the parents $. The name on title means nothing at all. Out of the almost 2B chinese there are plenty of multi millionaires. Own a HK apartment and you may be a millionaire. If you think Sydney is overpriced sit in the shoes of a chinse person who has seen prices quadruple in five years in some regions. Growth is driving value up fast.

For wealthy Chinese from HK, Macau and mainland etc the idea of having a western country to live in if it all goes pear shaped is gold. Mainland parents experienced poverty, starvation and persecution in the 1960-80;s. HK and Macau are still unknowns. Communism today is way different to what it was. The parents are terrified of the old days returning. They want their kids to prosper and get great education and build a lifeboat.

Quite good observation.

Also property boom in the last few years made an average home owner (2 - 3 bed room unit to be precise) in large city eg Beijing, Shanghai a property millionaire. Brother in law bought a 2 br unit in Beijing for $200k in Beijing in 2005, then sold it for over $ 1 Mil last year. That's how much property have appreciated in a short time period.

Some middle class families may have 2 or more unit. For them it's a matter of selling one and that's enough to buy property in cash in Sydney.

 

[ccw]

Warning: this is a bit long. Warning 2: I could be wrong but this is just my observation.

In China those who previously lived in the city and considered by others as 'previdged' wealth wise haven't change much. The people who became rich and very rich are actually the rural Chinese. When China opened its trade policies to allow foreign development import export etc demand for cheap labour sky rocketed causing many from remote villages moved to cities to work as cheap labour - these are considered 'foreign workers' by the local city folks but to their village they are the 'rich' people.

To accommodate the massive spending and living demand of these rural workers the people in city fidge villeges convert/build and rent out rooms. To put this in prospective you have to know that a lot of village family homes are 6-8 stories high with each level being separate dwelling preparing for sons and family to stay together even after marriage. So effectively these families could sit on their hands and still be receiving a great income more than required for their living standards.
Another thing about rural families is their right to land ownership from their farming days. Govt / big corp needed the land for infrasture and factories - they bought the land off the village folks and paid big bucks... Land that the folks didn't pay a cent to own to begin with.
You will find the rich Chinese or the rich kids buying up are mostly (not all) are manderain speakers and speakers with a village dialect. I suspect they have/had land in China. Why did I mention the language? Because traditionally the 'city' folks are the Cantonese speakers- HK, Canton etc.

I know someone who haven't worked at all in the last 7ys....his annual rental income is more than $140,000AUD net..... And he's the insignificant one in comparison to others.

 

[JohnHenry]

Warning: this is a bit long. ............

I know someone who haven't worked at all in the last 7ys....his annual rental income is more than $140,000AUD net..... And he's the insignificant one in comparison to others.

Wow, that's sounds like a very successful CF+ land lord or.. Boarding house owner

 

[esh]

1 bedder + study in Castle hill

Hey guys,

Thought I would share this as Castle Hill is relevant for this thread. A 1 bedroom +study on ground level in Castle Hill sold on Saturday for $750,000!

I understand the market is crazy but that is just too ridiculous!!! I could not stop talking about this all day. Looks like an elderly lady bought it too.

 

[Jacque]

Hey guys,

Thought I would share this as Castle Hill is relevant for this thread. A 1 bedroom +study on ground level in Castle Hill sold on Saturday for $750,000!

I understand the market is crazy but that is just too ridiculous!!! I could not stop talking about this all day. Looks like an elderly lady bought it too.

Hi Esh

We know this market very well and this price certainly wasn't unanticipated in this complex. Benaara Gardens is a lovely building, nicely located and with very spacious floorplans compared to others in this section of Castle Hill.

What's important to remember, however, is that it's actually a 2x2x1 unit, with the "study" (at a very decent 3x3.3m) really being bedroom size, as well as the extra space throughout (study nook can also be fitted into the hallway/void space). Ideally need to compare floorspace here as this unit was approx 150sqm (exc LUG) vs others in this area in other buildings (some older) at 30-40sqm smaller. Also pertinent is the fact that an identical one in this complex (but on a higher floor) sold almost 2 mths ago for $731K (also North facing) The market has been actively rising and a 4% increase in that period is certainly not unrealistic.

It's important to take all relevant factors into pricing and results (whilst surprising on paper) can be explained when these are considered. These include but aren't limited to location, floorspace, block position, scarcity etc. Much like Castle Hill's other already-built desirable blocks (Jessica's Court etc in Cecil) buyers will pay a premium to get into some buildings over others.

Will be interesting to see how much over the $800K's this listing gets too- same block, larger etc (floorplan not as easy to work with but simple enough to fit 3rd bed in "study" area) though the higher fees in this building do tend to put off investors. Lots of home owners downsizing in the Hills here due to demographics of the area so it will sell without issues I'm sure

 

[esh]

Hey Jacque!

Wouldn't it make more sense to advertise as a two bedroom? I think the study had a window

 

[JohnHenry]

Hi Esh

We know this market very well and this price certainly wasn't unanticipated in this complex. Benaara Gardens is a lovely building, nicely located and with very spacious floorplans compared to others in this section of Castle Hill.

What's important to remember, however, is that it's actually a 2x2x1 unit, with the "study" (at a very decent 3x3.3m) really being bedroom size, as well as the extra space throughout (study nook can also be fitted into the hallway/void space). Ideally need to compare floorspace here as this unit was approx 150sqm (exc LUG) vs others in this area in other buildings (some older) at 30-40sqm smaller. Also pertinent is the fact that an identical one in this complex (but on a higher floor) sold almost 2 mths ago for $731K (also North facing) The market has been actively rising and a 4% increase in that period is certainly not unrealistic.

It's important to take all relevant factors into pricing and results (whilst surprising on paper) can be explained when these are considered. These include but aren't limited to location, floorspace, block position, scarcity etc. Much like Castle Hill's other already-built desirable blocks (Jessica's Court etc in Cecil) buyers will pay a premium to get into some buildings over others.

Will be interesting to see how much over the $800K's this listing gets too- same block, larger etc (floorplan not as easy to work with but simple enough to fit 3rd bed in "study" area) though the higher fees in this building do tend to put off investors. Lots of home owners downsizing in the Hills here due to demographics of the area so it will sell without issues I'm sure

Yes, the strata is the major stumble block for me to buy as IP.

anywhere in Australia, new building somehow comes with higher Strata fee which increase yearly more than the CPI :-/

Regis Tower in Sydney CBD Castlereagh St. charge $ 1800 per quarter due to them employing 2x professional security guard to avoid Over crowded apartment building.

 

[esh]

Yes, the strata is the major stumble block for me to buy as IP.

anywhere in Australia, new building somehow comes with higher Strata fee which increase yearly more than the CPI :-/

Regis Tower in Sydney CBD Castlereagh St. charge $ 1800 per quarter due to them employing 2x professional security guard to avoid Over crowded apartment building.

Yeah badly, I sold a two bedroom in Parramatta. Strata was $2013 per quarter . That's the highest I have seen so far

 

[JohnHenry]

Yeah badly, I sold a two bedroom in Parramatta. Strata was $2013 per quarter . That's the highest I have seen so far

Far out !!!

That's way too much mate. for Parramatta apartment. Hopefully you are recovered now with the profits from elsewhere.

On side note: after reading this today http://www.smh.com.au/nsw/parramatt...ter-demolition-approvals-20150518-gh3ydx.html

You can't go wrong investing in Parramata. Any existing apartment non OTP (to avoid high Strata) will be a profitable IP.