Western Sydney areas ? Which are the best.

Does anyone know why the suburb "Colyton" is so special?

It's not! It just happens to be better quality than Nth St Mary's, but go over the other side of the freeway to St Clair & prices are higher again. This area is a lot more modern and better quality than Colyton.:D
 
I am in a position to invest about 1.1 million (including loan amount) to buy properties. Even though I live in Sydney, my knowledge of this region is limited and I am a bit lost.

Putting down some selection criteria (good schools, trains, shops, access to m2, m7) will help reduce the number of suburbs.

You should then look at sales data and yields.
Sales data will tell you the price properties were selling
in 2009 and if you can score a property at 2009 prices you're ahead.

For development sites there is too much competition and unless you're a builder you could be wasting your time.

IMHO
 
I have to disagree with you on potential cg. Indeed, if you look at the past growth figures for many suburbs of Sydney it simply doesn't support the old outdated argument that the areas closer in benefit from any superior growth to those further out.
Jacque and others,

Thought I'd also post this article by Michael Yardney which pretty well articulates the current argument on affordability and why the affluent suburbs are currently outperforming and are likely to continue to do so.

Just more food for thought...

Will housing affordability stall our property boom?

Michael Yardney said:
As you have heard me say before, there will always be affordable housing...just travel to the outer suburbs or regional or rural Australia. The problem is, that’s just not where many of us want to live.

So to me anyway, the conclusion is inescapable…we’re headed for another property boom where those who own the right type of property will make a fortune.

But as you’ve heard me say so often before, not all properties will increase in value. This year – 2010 - we are heading for a 3 tier market, as affordability and interest rate increases will affect some Australians more than others.

Those who own properties in the more affluent suburbs of our capital cities, which will have exhibited strong capital growth, will be sitting on a heap of equity and won’t really be worried about affordability. These inner and middle ring suburbs are likely to keep performing well again in 2010. These suburbs near the city and the water will become even more expensive and will strongly outperform the averages as owner occupiers and astute investors chase the small number of properties coming onto the market in these locations.

As more and more home buyers and investors find they are priced out of the inner ring they will start looking for affordable properties in neighbouring middle ring suburbs. These will also increase in value, but maybe not to the same extent as the inner ring suburbs.

Cheers,
Michael
 
Hi Anisavvu,
OK, I'll give you my thoughts but they may not be what you are looking for...
I think the greater West of Sydney is not the best place to be investing right now. That area did well out of the FHB grant and saw nice price appreciation last year.
My thoughts are you may not know much about West or SW.
If you persist in looking in Western Sydney then go for quality. Stick close to Parramatta and chase the train line or even Parramatta Rd which is set for a major upgrade. Read up on urban planning and what is planned for this area and buy to benefit from it. I think I've read good things about Granville but can't remember where or why. Schools, hospitals, shopping districts, urban renewal, transport corridors, these terms need to become your daily vernacular.
Good luck and let us know how you get on.
Cheers,
Michael
This is myth and fallacy mainly perpertrated by seminar holders and report writers.
There is no consistent generic connection between infrastructure and RE prices movements.
Nor do the median values you mention have any real correlation to house sale & resale values.
And how many MY articles do you need to post here?
Surely he can come and post himself if he he's such an expert.
Like a few others, he used this forum to promote himself under the guise of "contributor" and disappeared once the noob stream stopped as the RE market declined.
Can't handle the long termers it seems.
 
hi guys, as a newcomer / FHB i have a few ideas in my head i'd like to get opinions on.
I am planning / working on getting my first home (unit) from western sydney and my budget only allows me to look at places from Mount Druitt to Penrith.

1.According to the pyramid scheme, there will always be more lower income families than middle and upper income families.
2.The lower income families are more likely to be renting instead of owning a property, compared to other classes.
3.As demand outstrips if properties values double in the next 3-5 years time, a unit in mount druitt currently worth 200K would still be affordable by most families if it were to become 400k. I'm not sure (since I don't have the experience) whether a place in drummoyne costing 1.5Mill, can double to 3Mill.

Ok, firstly I would like to get everyone's opinions and professional feedback about these points. Then, I would really like to know... Is Mount Druitt really that bad? Or is it rather normal due to it being a large suburb/population with several other suburbs surrounding it?

Finally, how would one calculate gross/net yield? Potential week rental * 52 or 50 weeks / the value of the property = Gross
For Net Yield, it would be similar, just less the expenses.
 
hi guys, as a newcomer / FHB i have a few ideas in my head i'd like to get opinions on.
I am planning / working on getting my first home (unit) from western sydney and my budget only allows me to look at places from Mount Druitt to Penrith.

For around $200K I'd look at Lakemba & Wiley park first
Yields are much better and you are closer to the city

I'm not sure (since I don't have the experience) whether a place in drummoyne costing 1.5Mill, can double to 3Mill.

It's unlikely that they'll double.
I'm thinking that we'll have a scenario where prices go up and sideways or down and up again (just like shares). The timeframe would be longer because interest rates don't increase overnight but they will increase and when they do we could be watching those people who overborrowed on their PPOR burn in a market where not many people would afford to buy.

When interest rates get up to 8 and 9% people will be hurting so it's important to get properties which have good yields now and hopefully rents will increase a bit by then and will assist us in holding our portfolio during the difficult times.
 
hi guys, as a newcomer / FHB i have a few ideas in my head i'd like to get opinions on.
I am planning / working on getting my first home (unit) from western sydney and my budget only allows me to look at places from Mount Druitt to Penrith.

1.According to the pyramid scheme, there will always be more lower income families than middle and upper income families.
2.The lower income families are more likely to be renting instead of owning a property, compared to other classes.
3.As demand outstrips if properties values double in the next 3-5 years time, a unit in mount druitt currently worth 200K would still be affordable by most families if it were to become 400k. I'm not sure (since I don't have the experience) whether a place in drummoyne costing 1.5Mill, can double to 3Mill.

Ok, firstly I would like to get everyone's opinions and professional feedback about these points. Then, I would really like to know... Is Mount Druitt really that bad?.

As someone who both lives and invests in the area, I believe you have brought up some good points. As you are aware, most people do not have large incomes, making Western Sydney a much sought after area, because they can afford it.

Contrary to the belief of those who look through rose coloured glasses, there is a lot of value. Not only is the purchase price affordable, the rental yeild is more realistic and let's not forget Land Tax. If you hold inner city properties as investments you will be hit for a huge sum each and every year in that department.

People purchase in this area for many reasons other than affordability. Lifestyle choice is a big one. There are many affordable leisure activities and the traffic is SO much better than the inner ring. Then you also have those who want to live near work, family and friends. Remember, there is a lot of Industrial areas comming online, as well as easy access to the M4/M7 and the rail line.

The area is not all housing department sell offs either. There are many really good suburbs as well as the housing department areas. Many of the housing department stock has been sold off too, so that an area that was really bad 20 years ago is a different suburb today. This will only improve more over time.

Mt Druitt is not without problems, but if you have a good property manager and Landlord insurance you will be fine. It is important to get to know the area and do research on the street(s) as one feral resident can be a nightmare for their immediate neighbours. Luckily there are only a small number of really bad ferals, and they rarely target properties outside of walking distance.

If your budget is $200k, I would suggest trying for a house in poor condition (if you have the skills to work on it) as some only need a little cosmetic nurturing to give a nice chunk of equity straight up.

Good luck.
 
My thoughts are you may not know much about West or SW.

This is myth and fallacy mainly perpertrated by seminar holders and report writers.
There is no consistent generic connection between infrastructure and RE prices movements.
Nor do the median values you mention have any real correlation to house sale & resale values.
And how many MY articles do you need to post here?
Surely he can come and post himself if he he's such an expert.
Like a few others, he used this forum to promote himself under the guise of "contributor" and disappeared once the noob stream stopped as the RE market declined.
Can't handle the long termers it seems.


Hi PB
you make some good points.
When I started investing I would only purchase what was considered blue chip areas, 10km from major capital city ..... bla bla bla.

As I have moved on and witnessed 2 property booms I can say that following this strategy was short sighted and I was cutting my nose despite my face.

What I have witnessed is that during the boom cycle the lower end of the market actually performed significantly better than the blue chip suburbs and in particular if there was a potential for development there was even greater demand further increasing growth.

So why do we continually bag the suburbs which are less desirable but have greater potential in a boom cycle? For me personally it was lack of education and really just needing to get out of my comfort zone.

I like MY and enjoy reading his newsletters but he has a bias to a particular type of property and that is what he promotes. Like Monique Waklen? (sp) one of the largest buyers agent in Melb for she will only promote inner city blue chip Melb properties for her clients, when over the last 6-9 months I believe the largest growth came from 15km-25km radias (Melb).

I have just purchased a property in the Western Suburbs and will continue to do so, as it is cheap, the hardest thing is finding a suitable property which fits my criteria.

Cheers, MTR
 
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