What are the bargain suburbs in Sydney?

OK - I have $500K approved from Bank and looking for investors input. Looking for above average CG growth.

I am interested in bargain suburbs in Sydney for a free standing or Town house. I would like to stay away from units for this purchase.

So ... what are your top 3 choice suburbs and why.

I will start -

1) The Ponds (Nice new homes with land). Value for money. Can build and save on stamp duty as it only applies to land. Downside is it belongs to Blacktown council and lack of transport.

2) Beaumont Hills/ Beaumont Rise. Similar to Ponds. Difference is council. This area belongs to Baulkham Hills Council which some could argue is more prestigious than Blacktown. Some buses to city.

3) North Rocks. Interesting suburb. Close to M2/ shopping & schools. Established, very leafy and green. Would have to be a town house here.
Bargain suburbs


On the basis that the "bargain" suburbs are those which will show the most CG, then I would "Follow the money" by investing in Units in:

1. Parramatta
2. Harris Park
3. Granville.

All three suburbs, esp Parramatta, are benefiting from Gov stimulus money, all are close to roads/ rail / river (transport), schools, and other facilities.
All are attractive to recent migrants, therefore have low rental vacancies.

And all, compared with many other suburbs, are cheap and IMHO represent "bargains". But be quick.

......Looking for above average CG growth.....I am interested in bargain suburbs in Sydney

OK, so you want above average CG and a bargain - fine.

Why choose The Ponds with a lack of transport AND in a new estate AND only 4% CG lately? :confused:

At least Beaumont Hills has had 9% CG in the last 6 months even if the median price there is now around $600K.

North Rocks is leafy & green as you say and much closer to transport (M2) and buses but no train of course.

I am a bit confused as to why you have chosen ANY of these suburbs IF your criteria was for "above average CG and a bargain".

Where are the bargains? According to APM, in Sydney they are Avalon & Mona Vale on the Northern Beaches (10% below their peak still) and Paddington & Woolloomooloo in the Eastern Suburbs.

Personally, I favour a lot more in the areas around where tonyc00 suggested.
Bargains are very rare. Cheap suburbs are usually cheap for a reason.
Lack of capital growth being the main one. You just have to figure out why they are lacking CG and are cheap.
I live near the Ponds, this area and Stanhope Gardens are the aspirational areas for Blacktown, and this is spilling over to Baulkham Hills shire as well - the community, schools and facilities are first rate. These suburbs are next door to Beaumont Hills, and both enjoy the proximity to the New Rouse Hill.
It is a wonderful place to live, but I wouldn't want an investment property here - you won't get a great rental return, say 4.5%-ish, on a rather large outlay. A large share of the tennants will be people who are waiting for their new homes to be built.
Hope this helps.
how about narwee, riverwood, peakhurst, for that money you can easily find something.

still very close proximity to the city and reliable transport links.
Downside is it belongs to Blacktown council and lack of transport.

This area belongs to Baulkham Hills Council which some could argue is more prestigious than Blacktown.

Not sure if this counts for much, but just thought i'd add my 2 cents.

Just because an area or council is regarded as more prestigeous has absolutely no bearing on how much CG can be made in a property. Which you must keep in mind, because you can go for prestige and lose thousands or gain basically nothing, visa versa.

But yes, cheaper suburbs are cheaper for a reason. I'd be looking at Parramatta as an option, has good transport and has demand as it's closer to the city and is basically the city of the west. It's about timing as well as you'd know.
As usual nobody has defined "bargain" or "value".

Generally speaking, I think that's based on a particular property, moreso than a location, and relies on directly comparable sales. Or, better yet, a bank valuation from within the last three, maybe six months.

As for suburbs; I think that it would be hard to define a broad area with many properties, as a 'bargain'. My thoughts would be that if directly neighbouring areas, which appear to be fairly similar, are much higher in value... they may drag a lower-valued area up with it. Beyond that, we're talking generalities and statistics. Both of which are meaningless when buying a single piece of real estate.
I agree with James.

Prices have already moved and there is still a lot of buyer competition so bargains are very hard to find.
For that sort of money I'd look for a fixer upper or something with potential for additional income.

Don't believe that only certain suburbs have good capital gain.
However, we are going through an unusual investment cycle and capital gain is something which could come but which is not guaranteed so I'd concentrate on gearing my money to the max and finding something with low holding costs.

Currently, I'd buy a property if
I can use other people's money,
I can easily afford to hold it even if interest rates rise to 9%
it costs me nothing to hold
it has 7% or higher yields

The high yield requirement would mean buying units or dual occ's