Sydney - out west - what suburbs

Okay after my Lakemba thread and the many strong opinions against, hehe alot of people mentioned looking out west with my $350-$400k budget.

If the criteria is for something close to train stations for easy city access, prefer a house, but wouldn't say no to a unit, would prefer nothing too old and run down, what suburbs would you say would be worth a look for good steady CG in the medium to long term and good rental returns for now.............

Somewhere around Parramatta maybe?

I would really love to hear some thoughts.

Thanks in advance
 
You want a place with easy public transportation, so you might want to look at the Western Train Line and check where the major stops are.

I think Seven Hills would be alright with your budget.

But if you're looking for high rental yeild, go further west to Mt Druitt area with one of the highest rental growth in the western suburbs and currently yielding around 5 - 6%. Also, the area has been hit pretty bad in the last 24 months, and there's signs of recovery, so capital gain is on the agenda.
 
kweh has some interesting points, though personally I'm not convinced about the Mt Druitt area due to its sheer distance from Sydney - only attracts a limited no. of ppl.

I would suggest looking around parramatta/westmead/wentworthville, bit of a thriving hub with its own CBD and westmead hospital nearby.
 
Personally I would be looking for suburbs giving a 7% yield or better where there are also signs of recovery. Having said that, my picks are Penrith, Mount Druitt, St Marys central and south, Dean Park and Oakhurst area's (anywhere there is a high density of owner occupied properties).
 
This is great everyone, thanks for all of the responses. Mt. Druitt seems to be popping up a bit. Why is everyone so keen on it? I know nothing about Sydney so your thoughts would be really handy. Is it close to rail, how long to get into the city. Is it a family suburb, lots of units???? Would I be better to buy a house or a unit if I looked at Mt. Druitt?

And same questions about Seven Hills?

Is it my budget that is driving you all to mention the two places above or is it that you can see great growth there in the future? and why?

Thanks, sorry for so many questions.
 
Mt. Druitt seems to be popping up a bit. Why is everyone so keen on it? I know nothing about Sydney so your thoughts would be really handy. Is it close to rail, how long to get into the city. Is it a family suburb, lots of units???? Would I be better to buy a house or a unit if I looked at Mt. Druitt?

And same questions about Seven Hills?

Mount Druitt is traditionally a pretty 'scummy' area hence the property prices are significantly below the Sydney average house price. The yield in Mount Druitt is quite high, its not hard to find places returning 6% or more and the capital growth over the last 10 years has averaged around 9%.

As an investment, the numbers stack up. But it does depend on the quality of tenant you get so a good PM (as always) would be very helpful...oh and landlord insurance.

Mount Druitt has a big Westfield smack bang in the middle of the suburb, and hospital, a train station and easy access to the M4 motorway.
Other than the demographic for the area the only negative I can see is the availability of land. There is a huge amount of land earmarked for release so the supply will be abundant for the next 10-20 years, saying that with construction prices the way they are now (and they're only going to get worse) existing housing stock will be dragged up in price.


Seven Hills is 27km from Sydney CBD where as Mount Druitt is 38km, so 7 Hills is much closer in. It also has easy access to Westmead hospital and the Hills Private hospital, has a railway station, very easy access to the M4/M7/M2 motorway's and has a reasonable size shopping centre (guess where my business is located?).
House prices in Seven Hills are dearer than Mount Druitt and so are the rents but without looking into it I'm assuming yield is lower ~5% and CAGR is also ~9%.


Is it my budget that is driving you all to mention the two places above or is it that you can see great growth there in the future? and why?

Yes and No, Mount Druitt does fit nicely within your budget but as I mentioned earlier all the numbers stack up also.
 
If I can add to Shady's post,
even if they do release more land, new properties won't sell for less than $400K and will be on small size blocks.

If the housing market recovers and it will sooner or later,
then the older properties will go up in price and will come closer to the new property prices like they were before.

Cheers
 
Thanks for getting back to me with more info Shady. So how rough is the area? The houses I have had a brief look at on RE.com all look fairly good but obviously without going there it is a bit difficult to really know. Is this area starting to turn around? So many questions, sorry.

As for Seven Hills, what would draw people there? Does it have a better reputation than Mt. Druitt?
 
My pick is Guildford. Just over 30 mins to the city and 10 mins to Paramatta by train, depressed prices, 7%+ yield obtainable and plenty of houses and units within walking distance of the train station. The usual story re vacancy and quality of tenants hasn't been too bad. Also doesn't have the same degree of stigma or dodgy areas as some places out west.
 
As for Seven Hills, what would draw people there? Does it have a better reputation than Mt. Druitt?

Seven Hills area has Norwest Business park closeby and a Business Park along Powers Rd, Mount Druitt also has a business park within its boundaries but is also quite close to the new business park located where Australia's Wonderland used to be.

A suburb having a better reputation doesnt necessarily mean a better investment but saying that there are a less desireable areas (houseing commision ) in Seven Hills and close by Lalor Park.

I'd suggest judge each individual property on its merits as a long term investment.
 
Thanks for getting back to me with more info Shady. So how rough is the area? The houses I have had a brief look at on RE.com all look fairly good but obviously without going there it is a bit difficult to really know. Is this area starting to turn around? So many questions, sorry.

As for Seven Hills, what would draw people there? Does it have a better reputation than Mt. Druitt?


Mount druitt is low socio economic area. Mtdruitt itself is fine, its the surroundiung high density housing commission homes.

i have 80% of my properties in 2770 postcode.

i belive it has lots of potential, and has many strong fundamentals going for it.

DYOR.

Just picked up more there this week :)
 
My pick would be Mt Druitt, St Mary's or Penrith. We live in one of the Mt Druitt suburbs, have done for the last 5 years. St Mary's has ample parking for the trains & you can pick up housing walking distance from the station at a good price. Express trains are quite regular & hubby works in the City, so catches one every day. Yeilds are quite good & the area is slowly improving.
 
You've got good borrowing power. Look at some of these areas

Greystanes (Houses) Nice
Guilford (Houses) Avg
Pemulwuy (Duplex or House if ur lucky) Very nice
Oakhurst (house) avg
Plumpton (house) avg
Glenmore Park (house) Nice
Hinchinbrook (houses) Nice

My best picks of them all would be Oakhurst and Plumpton as they are very close to M7 and the social class of the area is slowly changing for the better. Some of it is still 'hows it goin', but there is some good stuff.

Hinchinbrook also close to M7, look to the newer part, you will tell because most of them look like masterton homes.

Pemulwuy is a new estate about 5 yrs old or so. Be carefull of over pricing there.

Don't buy a unit in Guilford for $250-300k, there's heaps of them. Be creative with the borrowing power you have. You'll find a house in that range for sure.

Greystanes is good, near M4. Takes me max 25-30min in peak hour traffic to Concord West (near homebush / DFO).
 
Back
Top