Sydney's Inner West: Inner or Outer suburbs?

[Jaz]

Hi All,

Just looking at parts of Sydney's Inner West. Generally, would you guys say that it is better to buy in the "outer", less developed suburbs? I suppose these areas could be subject to a faster rate of capital growth (providing the drivers are there). However, I do like the some of the inner suburbs (especially along the inner west train line). I expect they will always have huge rental demand.

Cheers,

Jaz

 

[C-mac]

Hi Jazz,

Couldn't agree more!
I may be a little biased though; I'm just two weeks away from settlement on my little Croydon Park gem. It's initally a PPOR but am looking to add my value then move out and pick up the gains.

Croydon Park, Hurlstone Park, Ashfield; these kind of areas have so much potential to them. And let's not forget Dulwich Hill. With the extension of the tram line the place will see solid capital growth. But some have argued that Dulwich Hill's peak has maxed. Jury is out on that though!

My two cents is to look at good old unrenovated 3-floor walk ups. Yep, those old red-bricks with great fundamentals but a dated interior. These ones are ripe with opportunity. Just make sure you get something with parking. Doesn't matter if it's lock up garage, covered carport, or even uncovered carport. Just a space that is YOURS on-title. Why? Think about what happens when Sydney grows bigger. All those wide streets in the 'outer' inner west (so, that 5km-10km radius area), will become metered parking, and councils will be very tight/restrictive on the number of 'parking stickers' they issue per unit. So if you can secure some on-title parking allowance, this will really help.

 

[Jaz]

Hey,

Thanks for your response. So when an area has peaked, like those inner suburbs, does that mean than the gains just won't be there? Or does it depend on your strategy? I'm not looking at doing major renovation work.

Cheers,

Jaz