Keen to hear thoughts, thinking of buying an existing property around within 15 km of WSI: Penrith, St Mary's, Austral, etc, obviously avoiding the noisy flight path areas.
Prices currently for units, townhouses are fairly reasonable and can get average rental yield at the moment. Not looking at land….
Would these properties surge in value after 2026 when WSI opens? Anyone else thinking of taking a property investment gamble there?
If you buy near a future metro stop or planned school or mall that might be worth it?
Good idea, buying a couple in Penrith and Austral tomorrow!
Make sure you are not in the fllod plain.
Have planned ahead and gamed the system!
What is todays flood plain, is tomorrows luxury resort with climate change and all ;) Buying all the flood plain properties I can!
flight paths haven't been announced yet……..buyer beware
Also first movers price increase in these areas has already been factored in….buyer beware
Invest 15 years ago
You missed out
Was only 7 yo 15yrs ago
LMAO, this thread belongs in 2013
It is all priced in already. I.e. the prices today have already reflected the surge in capital gains in future. Unless some other significant development happens, you basically buying high.
obviously avoiding the noisy flight path areas
How do you even predict this? It will come from all directions.
As everyone else has already mentioned, you missed out already.
I had some friends in Austral. They got their property valued in 2010 at about $700k. They sold in 2016 for a bit over $4M.
You have definitely missed out here.
If you are really serious about investing you probably want to look at areas that have a chance of being rezoned or built up in 10-20 years.
too late br0
maybe predict where they third airport will be built
not looking at land….
So you're looking for a Jetsons style house?
This is the reason why this country is now a shit hole.
The smart money bought property in the area 5-20 years back.
Don't forget, once you buy a property near an airport, to complain about the noise and traffic.
Current trend for them the better/top speculators is buying properties zoned to top govt secondary schools. They have picked up more people not being able to afford private school fees and this is the smart thing to do.
Western Sydney Airport will be Melbourne's Avalon Airport version in Sydney
It’s for freight and second tier budget airlines. Property will go up in value, as tends to do, but I don’t think people will give up the beach side property to move to a cow paddock to catch an AirAsia flight at 5am.
You are not going to make 'significant' gains and considering it is a 'gamble' for you even less so. If you want to make significant gains in property there is obviously the macro economic environment to consider. But at the same time you need to find a niche or an angle that will actually add value or introduce value to the property you are buying.
Buying near the airport is front page news and is not a fantastic niche or angle. Every second tom, dick and harry knows about the airport and the major infrastructure going in and where it is going. So if there was big money to be made, people have already made this money.
I'm not saying you won't get some value, you will get value eventually. But you will only get the same buy and hold value as the average price rise that will occur in Sydney from the macro economic property cycle. If that is the case, you can buy anywhere and it will go up in value on a long enough time horizon, buying near the airport won't accelerate that in any meaningful way.
If you want to get higher than average gain, so you are able to use the equity and purchase more property next time. You need a unique angle or a unique edge that you can exploit for higher than average gain. If you want to just buy any property and hope it just goes up, you will not get a great return. But if you buy a property where there is potential value to add or gain then you will make a lot more. For example, you could buy a property that re-zones after you have bought it. This is very or almost impossible to do, but when it occurs you will make a lot of money.
Also, as you look at this as a gamble here is some maths. Say you buy a house to live in for $300k and in 8 years its worth $500k. You made approximately 8% return per year but paid 5% in interest to make that return. So you might make 3% per year in profit, but probably less because to hold the house you also had to repair it, pay rates, insurance and other things. That is a really crappy gamble, despite making $200k in equity which sounds good. The maths gets slightly better if you rent it out due to negative gearing but not that much better because you only claim a tax deduction on income not the expense, you don't get the benefit of the entire loss if there is one. Once you look at property as an investment with leverage, then compare it to almost any other investment with leverage, there is so much better options out there. Even the stock market will get you a much better return in a shorter time frame.
To win by 'picking' in the property market you have to think differently, and you have to be right.
If you just do the most popular idea you're unlikely to beat the average returns which you could just get buy buying a typical property in an established area.
So by seeking to validate your investment idea on a community of bargain hunters, you'd only really win if everyone says 'it's a bad idea', you do it anyway, and you turn out to be right.