Schofield - Projected growth in the next 5 years?

[JameZ]

As anyone been around the Schofield area in Western Sydney lately? I drove there with a friend to look at a house + land package earlier this week (she is not a resident so can only buy new), and I saw a lot of new developments.
- Newly bricked homes everywhere (all smallish in land size 300-400)
- Lots of empty land circled off, waiting to be developed
- Woollies next to station, with a Mirvac Shopping centre to be built? In the next few years according to the REA
- Gigantic Bunnings opened (makes sense since so many new homes building in the area), with an IKEA that is fully built and looks ready to open in a few months.
- Sydney Business Park hailed as the next CBD of Sydney West.
The packages start at low 600k for a 3/1/1, 380sqm, with rent projected to be around the high 4 -500+ mark.
Question is ? do you guys see any CG potential for the area, I realise it the area is still early in its development life, but maybe a good 5-10 year long term play?
Or has the price already increased to unrealistic levels to make the neg yield investment not worth while?

 

[Danieljk101]

With plenty of growth over the last few years and plenty of land available I doubt you will see much more growth in the short to medium term.

 

[Brian84]

I agree with Daniel. I build new homes in and around schofields and I have seen blocks of land go up in excess of 150k over a year which to me it could be reaching its limit for now. How many blocks of land are going to sell for over 450k for a block that is around 350-400m2. I know in the nearby suburb of the ponds I think all of the land has been sold so if you are thinking of buying I wouldn't leave it to long.

 

[Rolf Latham]

residex suggests approx 4 % as they do for the average of Sydney

ta
rolf

 

[kamchatsky]

I have an IP there (bought new 1 year ago and is currently tenanted) so I can tell you more about it.

Pros:
- There is already existing Schofields train station to city (50 minutes at peak time)
- By 2019 there is another new train station nearby (Cudegong Road for North West Rail Link), so it would be even more convenient. You can practically go to many Sydney areas by trains from Schofields.
- It is cheaper than neighbouring suburb The Ponds (which is REALLY EXPENSIVE), so by ripple wave theory price should go up (or The Ponds goes down ). Now that The Ponds is considered "full" (i.e. all land sold out) more people will be buying Schofields.
- It would be considered as part of The Hills (not council boundaries, but general consensus) as it gets developed.
- Most of the houses will be new and there would be feel good factor for residents.
- New shopping centre to be built next to Schofields station, another feel good factor.
- Sydney Business Park at Marsden Park (next to Schofields) will be a big employment centre. IKEA, Costco, Bunnings, Master already have land and building there. Schofields Road is expanding linking Rouse Hill to Schofields to Marsden Park.
- Possible extension of NWRL to go to Marsden Park via Schofields, making Schofields a transport hub, bringing even more convenience:
http://www.dailytelegraph.com.au/ne...ugh-marsden-park/story-fngr8i1f-1226926622773
- Not many places in Sydney where you can buy new houses near an existing train station.
- Additional tax benefits via depreciation.

Cons:
- Far away from Sydney CBD
- Land is small comparing to other Sydney areas with older houses.
- Possible bad quality of developer for OTP causing additional headaches. So you need to be selective on this (mine is Mirvac which has good reputation in general).
- OTP houses in general doesn't including everything, so you pay extra like grass, nicer lights, etc etc etc, which would push price of house up.
- Possible oversupply if too many investors invests there.
- No manufacturing equity options such as sub-divide, renovation (unless buy older Schofields houses), knock-down and rebuild etc. So it really is only good for buy and hold (for at least 5 years when NWRL is completed which would get more capital gain).
- Delays on building OTP houses as Blacktown council gets a lot of DA applications, weather, etc.

If you are interested in investing in Schofields, I would suggest that whatever you buy must be walkable (15 mins MAX) to Schofields station, or future Cudegong Road train station. It would be easier to rent out. Don't buy near major power lines.

I suggest you look the the Northwest Growth Centre website for the master plan for Schofields and surrounds.

http://growthcentres.planning.nsw.gov.au/TheGrowthCentres/NorthWestGrowthCentre.aspx

 

[ericproperty]

I remember visiting a friend back in 2007, Schofiled was like a farming land, so different now. still seems toooo far from anywhere

 

[ej89]

I have an IP there (bought new 1 year ago and is currently tenanted) so I can tell you more about it.

Pros:
- There is already existing Schofields train station to city (50 minutes at peak time)
- By 2019 there is another new train station nearby (Cudegong Road for North West Rail Link), so it would be even more convenient. You can practically go to many Sydney areas by trains from Schofields.
- It is cheaper than neighbouring suburb The Ponds (which is REALLY EXPENSIVE), so by ripple wave theory price should go up (or The Ponds goes down ). Now that The Ponds is considered "full" (i.e. all land sold out) more people will be buying Schofields.
- It would be considered as part of The Hills (not council boundaries, but general consensus) as it gets developed.
- Most of the houses will be new and there would be feel good factor for residents.
- New shopping centre to be built next to Schofields station, another feel good factor.
- Sydney Business Park at Marsden Park (next to Schofields) will be a big employment centre. IKEA, Costco, Bunnings, Master already have land and building there. Schofields Road is expanding linking Rouse Hill to Schofields to Marsden Park.
- Possible extension of NWRL to go to Marsden Park via Schofields, making Schofields a transport hub, bringing even more convenience:
http://www.dailytelegraph.com.au/ne...ugh-marsden-park/story-fngr8i1f-1226926622773
- Not many places in Sydney where you can buy new houses near an existing train station.
- Additional tax benefits via depreciation.

Cons:
- Far away from Sydney CBD
- Land is small comparing to other Sydney areas with older houses.
- Possible bad quality of developer for OTP causing additional headaches. So you need to be selective on this (mine is Mirvac which has good reputation in general).
- OTP houses in general doesn't including everything, so you pay extra like grass, nicer lights, etc etc etc, which would push price of house up.
- Possible oversupply if too many investors invests there.
- No manufacturing equity options such as sub-divide, renovation (unless buy older Schofields houses), knock-down and rebuild etc. So it really is only good for buy and hold (for at least 5 years when NWRL is completed which would get more capital gain).
- Delays on building OTP houses as Blacktown council gets a lot of DA applications, weather, etc.

If you are interested in investing in Schofields, I would suggest that whatever you buy must be walkable (15 mins MAX) to Schofields station, or future Cudegong Road train station. It would be easier to rent out. Don't buy near major power lines.

I suggest you look the the Northwest Growth Centre website for the master plan for Schofields and surrounds.

http://growthcentres.planning.nsw.gov.au/TheGrowthCentres/NorthWestGrowthCentre.aspx

What do you think of riverstone compared to it? I have an opportunity to grab a deal for a house and land for my parents that fell through from another guy for 584k for 4 beds on 320sqm land (which is small). Comparable sales are 640k minimum for house and land.
8 mins to Rouse hill town centre
9 mins to Ikea

Not sure if it's worth it or not.. We're also looking at Edmonson Park as at the moment we live in Cecil Hills but our house is too big and we want to downsize

 

[kamchatsky]

What do you think of riverstone compared to it? I have an opportunity to grab a deal for a house and land for my parents that fell through from another guy for 584k for 4 beds on 320sqm land (which is small). Comparable sales are 640k minimum for house and land.
8 mins to Rouse hill town centre
9 mins to Ikea

Not sure if it's worth it or not.. We're also looking at Edmonson Park as at the moment we live in Cecil Hills but our house is too big and we want to downsize

Riverstone is a huge suburb, and there is a large section of existing housing (near train station) where there are some roughies living there. Therefore it really depends on where the land of the deal is in Riverstone. If it is at say Grantham Estate (which is getting expensive) which is far away from the existing houses then your parents may be more comfortable. However even Riverstone is shooting up so I guess your parents would need to make decision quick.

Also trains at Riverstone is nowhere as convenient as Schofields as there are 2 train tracks up to Schofields and then it is all single track (with passing loops) from Schofields to Richmond (via Riverstsone). So there are lot of trains starting at Schofields to city, but not from Riverstone. Have a look at Sydney Trains timetable.

But for purely investment purposes Riverstone actually have a lot more older housing which may suit somersofters who wants to do Reno, or knock-down rebuild or sub-divide/townhouse/villa developments. Personally I prefer Schofields only because I am more of buy and hold person, and I don't think I am good at doing/managing renos/developments etc.

 

[JameZ]

I have an IP there (bought new 1 year ago and is currently tenanted) so I can tell you more about it.

Pros:
- There is already existing Schofields train station to city (50 minutes at peak time)
- By 2019 there is another new train station nearby (Cudegong Road for North West Rail Link), so it would be even more convenient. You can practically go to many Sydney areas by trains from Schofields.
- It is cheaper than neighbouring suburb The Ponds (which is REALLY EXPENSIVE), so by ripple wave theory price should go up (or The Ponds goes down ). Now that The Ponds is considered "full" (i.e. all land sold out) more people will be buying Schofields.
- It would be considered as part of The Hills (not council boundaries, but general consensus) as it gets developed.
- Most of the houses will be new and there would be feel good factor for residents.
- New shopping centre to be built next to Schofields station, another feel good factor.
- Sydney Business Park at Marsden Park (next to Schofields) will be a big employment centre. IKEA, Costco, Bunnings, Master already have land and building there. Schofields Road is expanding linking Rouse Hill to Schofields to Marsden Park.
- Possible extension of NWRL to go to Marsden Park via Schofields, making Schofields a transport hub, bringing even more convenience:
http://www.dailytelegraph.com.au/ne...ugh-marsden-park/story-fngr8i1f-1226926622773
- Not many places in Sydney where you can buy new houses near an existing train station.
- Additional tax benefits via depreciation.

Cons:
- Far away from Sydney CBD
- Land is small comparing to other Sydney areas with older houses.
- Possible bad quality of developer for OTP causing additional headaches. So you need to be selective on this (mine is Mirvac which has good reputation in general).
- OTP houses in general doesn't including everything, so you pay extra like grass, nicer lights, etc etc etc, which would push price of house up.
- Possible oversupply if too many investors invests there.
- No manufacturing equity options such as sub-divide, renovation (unless buy older Schofields houses), knock-down and rebuild etc. So it really is only good for buy and hold (for at least 5 years when NWRL is completed which would get more capital gain).
- Delays on building OTP houses as Blacktown council gets a lot of DA applications, weather, etc.

If you are interested in investing in Schofields, I would suggest that whatever you buy must be walkable (15 mins MAX) to Schofields station, or future Cudegong Road train station. It would be easier to rent out. Don't buy near major power lines.

I suggest you look the the Northwest Growth Centre website for the master plan for Schofields and surrounds.

http://growthcentres.planning.nsw.gov.au/TheGrowthCentres/NorthWestGrowthCentre.aspx

Appreciate the input Edison. In the end I decided to look interstate as the Western Sydney prices are just too hot atm.
Best of luck with your IP!

 

[JohnHenry]

What do you think of riverstone compared to it? I have an opportunity to grab a deal for a house and land for my parents that fell through from another guy for 584k for 4 beds on 320sqm land (which is small). Comparable sales are 640k minimum for house and land.
8 mins to Rouse hill town centre
9 mins to Ikea

Not sure if it's worth it or not.. We're also looking at Edmonson Park as at the moment we live in Cecil Hills but our house is too big and we want to downsize

So between Edmonson Park and Schofield, which one that you guys think will be growing better or gentrified more ?

 

[MsAli]

So between Edmonson Park and Schofield, which one that you guys think will be growing better or gentrified more ?

Hi John,

Are you a troll? Or you simply have a mental block? That's a chunky distance you're talking between Edmonsdon Park and Schofields!

I'd strongly suggest you get out of your 'analysis paralysis'. Pick AN area, do the numbers and see how it seems to you. Ask yourself:
- Is it positively geared?
- Is it too negative? but the property has an upside such as development or renovation potential?
- What happens when interest rate goes up by 2%? Do you have buffers in place?
- Is it neutral/slightly negative but the property has an upside such as development or renovation potential?
- Can you improve the rent & value through renovations?
- What sort of investment is happening in the area (look up Rixter's posts that explain this very well)
- What are you trying to achieve? Are you just starting out? Are you just building your basis/base portfolio? If so, can you be single minded about this and just do it?

When a "Region" e.g. Sydney goes up in value, all suburbs do. It's all relative. If you have a 200k property or 400k or 4mill, it will be relative. It's called compounding.

What's your mental block and preventing you from deciding on an area?

 

[ej89]

If you bought in Schofields in January you would've made 50k by now. Land has gone from $1000/sqm to $1350 there. The Ponds gone from 1200 to 1600. The demand has gotten even bigger for both of these suburbs especially the ponds because its built out pretty much.

 

[JohnHenry]

If you bought in Schofields in January you would've made 50k by now. Land has gone from $1000/sqm to $1350 there. The Ponds gone from 1200 to 1600. The demand has gotten even bigger for both of these suburbs especially the ponds because its built out pretty much.

Far out, I've missed the profit wagon....
I'll see if I can get some approval from the bank to buy one lot either in Schofield or Edmonson park.

 

[ej89]

Far out, I've missed the profit wagon....
I'll see if I can get some approval from the bank to buy one lot either in Schofield or Edmonson park.

What's your budget and preference for land?

You don't need an approval to buy land. Pay deposit and get loan when it comes close to registration.

 

[JohnHenry]

What's your budget and preference for land?

You don't need an approval to buy land. Pay deposit and get loan when it comes close to registration.

My budget is $ 600k would that be enough for a house and lan package OTP in the area ?

 

[MsAli]

My budget is $ 600k would that be enough for a house and lan package OTP in the area ?

Hey John, I was trying to help there ^^

 

[monalisa]

If you bought in Schofields in January you would've made 50k by now. Land has gone from $1000/sqm to $1350 there. The Ponds gone from 1200 to 1600. The demand has gotten even bigger for both of these suburbs especially the ponds because its built out pretty much.

....and people have been complaining that parramatta region is over priced

 

[ej89]

....and people have been complaining that parramatta region is over priced

Difference is half the suburbs close to Parra that people are paying 800-900k for are still a hole that I wouldnt live in for more than 500k and ive grown up in Western Sydney my whole life and I know people are paying ridiculous prices to live in crap areas with high crime rates..people tend to pay a premium for new homes in new estates because they get a better home in what is generally a better suburb..The Ponds got named the most advantaged suburb in Australia so that comes at a premium.. (Insert all the negative comments that will come below about the Ponds lol)

 

[ej89]

My budget is $ 600k would that be enough for a house and lan package OTP in the area ?

There's only one estate that those prices may be a possibility.. Private message me

 

[JohnHenry]

Hi John,

What's your mental block and preventing you from deciding on an area?

It's a matter of buying the existing property in a gentrifying suburbs vs. OTP in a developing suburbs for investing.

Given the same amount of budget to invest, which one is suitable for long term CG ?