The Ponds

I

itxrd

Hey guys

What are your thoughts on the Ponds? Just spent the last 2 days in the area talking to people. Seems like a great area with good infrastructure and the train line coming in 10 years. Maybe good CG.

However it is very far away especially as I work in the CBD.

We are close to getting the last block of land currently available there - 480sqm for $370k. Then build on it for $250k.

Can stay there or rent it out after a while. Think rental might be good but while there is no more land there now would be another release in a year or so.

Good idea or not?
 
train line maybe in 10 years time?

last block available? thats very likely to be marketing spin. land developers stage their releases to keep a lid on supply and inflate prices. there will be another 'last one' as soon as this ones purchased.

Id investigage areas about 2 or 3 suburbs closer to town. The asking price will be less, and you wont get the same stamp duty FHOG etc, but you wont be stuck paying progress payments and renting for 6 months and then live in a place cut off from transport links for up to 10 years.
 
So let me get this straight. You are going to build a McMansion in an estate on a 480 sqm block of land. Your total costsis $620,000. How are you going to get that money back? Think about it......480sqm is tiny, especially in those areas. Who the hell is going to pay you anywhere near $620,000 for that? Especially when it is no longer new in a few years time?
 
Doesn't stack up to me.

$600k+ to live at the ponds and commute to the CBD?

I've done the long commute thing in the past and it gets old pretty soon!

I reckon a house < 10 years old in a different area would be a much better lifestyle. Each to their own of course.
 
You wouldn't get much house for 250k. That would only be an entry level house in The Ponds.
There was a good article in the Telegraph a few months back about someone commuting to the city via bus from The Ponds. Took him 90mins on a good day.
If u want new and shiny go to Edmondson Park that had its first release on Saturday. Definite immediate plans for a train station there.
To be honest you're on the wrong forum if your posts are all about building new. I'd recommend you go to honeone.com.au.
New doesn't generally make money unless you buy a tricky block and are creative or get a very good deal for the land.
 
Thanks a lot for your responses guys. Its unanimous

We're going to buy to invest and rent where we want to live.

Going to look at 1/2 bed units for the former. You guys are showing me the ropes but I see I still have a lot to learn so the first investment will probably be a 2 bed unit somewhere like Dee Why with low strata. Not new. Going to ditch the idea of the new grants altogether.

Thanks to you all for pointing us in the right direction
 
Big, grand multi room mcmansions probably dont make a lot of sense as investment vehicles in locations such as The Ponds. But occasionally within these new estates, smaller and less expensive opportunities for townhouses will pop up, and those can be more worthwhile as investment vehicles. Sometimes dual occupancy opportunities come along also. i.e A house on the front of the lot and a studio at the rear ( similar to a granny flat) and those can be extremely effective investment vehicles because the cash flow can be very strong from being able to rent two dwellings.

As for the train line- the north west train line has been announced and then cancelled more than a dozen times in the last 15 years. While I believe that it may finally actually happen this time around, it's not going to happen quickly, so the area will continue to be bound by 2 lane motorway access until then. With an anticipated further 250,000 population in the North West of Sydney by 2030, and one of the worlds largest business Parks continuing to grow ( NORWEST) there's certainly no shortage of potential for growth in the area over time, but I dont think the demand will be for massive mcmansions. I think you'll see a real shift in demand towards more medium density townhome/villa type of accommodation, and the new planning minister Brad Hazzard is pushing /lobbying pretty hard in that direction already. Sydney just has to move away from giant homes on smallish blocks. It needs more density, not more sprawl. It's geography is unique because it is split by water and the city is not centrally located.... so more sprawl just represents the need for moe and more motorways and rail, which the Govt ( liberal or labor) clearly hasnt been capable of delivering for over 2 decades.

So all things considered, the area isnt the problem. The mcmansions are the problem. So unless you can buy something smaller or dual occupancy, with superior cash flow, it's probably not a great place to be looking.
 
itxrd said:
Thanks a lot for your responses guys. Its unanimous

We're going to buy to invest and rent where we want to live.

Going to look at 1/2 bed units for the former. You guys are showing me the ropes but I see I still have a lot to learn so the first investment will probably be a 2 bed unit somewhere like Dee Why with low strata. Not new. Going to ditch the idea of the new grants altogether.

Thanks to you all for pointing us in the right direction
Click to expand...

Best of luck with it all ITX- any reason you chose Dee Why, just out of curiosity?
 
Thanks Euro - great analysis!

Hey Jacque

Well we haven't chosen anywhere yet because every bloody 5 mins I am changing my mind.

We're looking at Dee Why because its not too far from the city. Can get a 2 bed for our budget of around $450ish. Its close the beach, lots of growth planned in terms of that being a 'new CBD'. Lots of demand on the northern beaches

Other options are:

Cremorne
Collaroy
Maybe Wollstonecraft
Freshwater

If those aren't a go I'm thinking 2 beds near train lines so:

Gordon
Pymble

I know most people have recommended getting a 3 bed on a big block say around Toongabbie/Seven hills for the same price. That would have more potential for subdivision later. Right now i am not sure i know enough about that. For the 1st IP maybe a unit is easier and the way to go

Hope it makes sense?
 
itxrd said:
Thanks Euro - great analysis!

Hey Jacque

Well we haven't chosen anywhere yet because every bloody 5 mins I am changing my mind.

We're looking at Dee Why because its not too far from the city. Can get a 2 bed for our budget of around $450ish. Its close the beach, lots of growth planned in terms of that being a 'new CBD'. Lots of demand on the northern beaches

Other options are:

Cremorne
Collaroy
Maybe Wollstonecraft
Freshwater

If those aren't a go I'm thinking 2 beds near train lines so:

Gordon
Pymble

I know most people have recommended getting a 3 bed on a big block say around Toongabbie/Seven hills for the same price. That would have more potential for subdivision later. Right now i am not sure i know enough about that. For the 1st IP maybe a unit is easier and the way to go

Hope it makes sense?
Click to expand...

Hi Itx

Best of luck with it all. Sadly, I can't comment on the northern beaches as we only look as far as Killarney Heights/Forestville but I can certainly save you some time in NOT considering Cremorne and Wollstonecraft/Waverton as you will only get 1 beds in this price bracket for your money. A little further afield Lane Cove reaps choice but very limited still.

Same goes for Upper North Shore Gordon/Pymble etc. Most units in the $450K range are either on the Pac H'Way and/or don't have parking. Thinking of other areas, you may want to check out Ryde, Macquarie Park etc as demand is also high here, depending on location. But if you've got your heart set on the Northern Beaches go for it and best of luck :)
 
itxrd said:
Bit far away...from what i've been told commutable distance to sydney CBD is a big positive. For our first IP I think its worth playing a little bit safe
Click to expand...

At 450K, I'd suggest taking a closer look around areas in and around Blacktown LGA. You should be able to secure a new or relatively new townhouse with parking for that sort of budget.

Not fancy areas, but rail infrastructure is already there, meaning a 45 -50 minute city commute or a 10-15 minute Parramatta commute. Express trains on the western line are being introduced, so the commute will soon be even shorter. Hospitals are there. Close to the 2nd CBD of Parramatta. Motorway access is already there, and just like Parramatta was a long way from the city 15 years ago and is now considered not very far away, Blacktown is seen as a long way out but wont be in 10-15 years, as Sydney continues to expand.

More than 60% of Sydney's population lives west of Parramatta, and Blacktown LGA is the largest LGA outside Parramatta. Those numbers will only get larger because Sydney has nowhere to go , East of Parramatta.

Some areas worth looking into; Blacktown. Plumpton. St Mary's. Quakers Hill.

FYI, Dee Why /Northern Beaches are beautiful, but traveling to the CBD takes far longer than from Sydney's west.
 
I had a client come to the agency where I was working last year.

The guy bought one of these new houses in the ponds (4Bed/2 or 3Bath/2car) 2 story - Killari?

$600K purchase - as soon as it was put on it was taken the same day for $650p/w

This was last may 2011 though, not sure about costs, CF +/- tho.

John.
 
Great community, great schools and excellent choice for PPOR in my experience, however working in the CBD would be difficult due to the commute. Most people I know who work in the CBD do so part-time, many people work locally, even commute to Norwest, Parramatta, Prestons, North Ryde/Homebush, and other easily accessible business districts.
I believe the rental market in the area is strong.
Don't believe that there is only one block left, if you like the area look in the estates close by and you'll find some land available, eg Kellyville Ridge.
You won't get much house for $250k, remember to factor in extras like carpet, blinds, fences, driveway, landscaping, etc etc etc.
 
not sure about the rental yield at Dee Why / Northern Beaches, but I go to CBD via military rd everyday for work and I can tell you that the traffic is getting worse and worse every year.... the average time to get to CBD has increased about 10 mins over the past 2 years...

you can expect 10-15 mins more if it is a busy school days + rain.

itxrd said:
will probably be a 2 bed unit somewhere like Dee Why with low strata. Not new.
Click to expand...
 
I never really understand areas like " the Pond" ??

so expensive, so unconvenience to city, at least 10 years to wait for the train coming ....


why not Parramatta, why not Blacktown, why not St Marys, trainline already estabilised, shops, school, everything is old but functional and much much cheaper...


I can only think of one reason people buy in the pond is they want to retire in a nice, new area, and they are wealth don't go to work stuck on the traffic everyday...
 
they want to live in a new property (ignoring the quality/durability), in a place with a nice name, such as

XXXX crossings
XXX springs
XXX ridge
XXXXX gardens
XXXX fair

at a price they can afford, ignoring the fact that they are far far away from the city.

Blacktown, Doonside, Campeltown etc has already being type-casted, like a Datsun.

scha9799 said:
I never really understand areas like " the Pond" ??
...
Click to expand...
 
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