NSW Areas not to buy

Dont really like to start a thread like this,but there are areas which are not so good from an investment point of view.
Of course we all have our own opinion and ones may not be yours, but I have listed some I know and please give your opinion if you think I may be wrong or it could have potential for the future.

Suburb- Walgett,situated in Country NSW .
.doesnt seem to have a lot of investment potential or Capital Gain.

Negatives-- .a lot of Govt housing , highest crime rate in Country NSW
Unemployment, domestic violence

Possible future positives --could be a high rental area as most dont own their own homes
-- New Government assistance programs will bring Government workers
And staff into the town.
--- Town should change over time, property prices are extremely low which has the advantage of rising.
Verdict-- very risky investment

 

Suburb /town----SCONE nsw

Situated in the upper Hunter Valley SCONE is known for its Racehorses .
Even has a statute as you enter the Town of a famous racehorse.
Has a Railway Station with services daily to Newcastle and Sydney.
Approx 3.5 hours drive to Sydney .

Negatives-I have mixed feelings on SCONE as some give negative reviews due to the closing if the mines and others say mines are opening up?
--unemployment is high,mines closing, house prices are too exprnsive in my opinion.
- most houses for sale start from the high 200's,seems expensive.
1 bedroom units are advertised at 210k
-some say oversupply of rentals?

Positives and future--has a lot of Tourists during its horse racing season.
Heard there are a lot of renters with transient life.
Mines may open again.

Verdict--- too high price for me at the moment but I guess it may have potential.

 

Suburb- Darlinghurst,situated in inner city Sydney .

Negatives-- .Drug problems, street walkers, noisy clubs.

Possible future positives - Excellent capital growth because people like living near drug problems, street walkers, noisy clubs.

Verdict-- Get high, get loose and buy up big!




sorry

 

hahaha @Biz!

did you mean Darlinghurst or Ambervale (near Campbelltown)?

 

Possibly thinking of Kanahooka Biz.

 

I spent a week there one day.

Went on a great family holiday up the east coast of Australia with the family (Mum, Dad, brothers, sister, dog) in the Valiant. Unfortunately, the old bomb kept breaking down. Sounds like it hasn't changed.

 

.

Time just dragged on eh wattle?

 

Without having to go around at night or on the area, how can you know about the House or some other drug related issue ?

 

Knowing what/where not to buy is often just as important as knowing what to buy...same coin..just different sides.

 

Sydney.

 

Two areas for avoid for next 5 years:

1) Sydney CBD
2) Sydney/nsw suburbs other than Sydney CBD

 

No one has specifically mentioned the Druitt. Phew.

 

Druitt won't be too bad IMO. Just a small correction, probably 5-10% for houses. The other 2770 suburbs away from the train line may have a slightly bigger correction.

 

Mining towns... still no go zone.

 

Its not risky if you can buy in State housing precincts where Government has earmarked for development, in fact can be a massive windfall.

Biggest risk in any market is buying the wrong product at the wrong time.

Would you really risk buying anywhere in Syd/NSW now???? Investors are out, FHB will be tapped out soon and supply wont soak up the volume coming to market. This only means one thing, a correction south.

MTR

 

I'm not sure about that. Do you think there is any more downside risk? Depends on the 'mining' town of course but Its been 5-6 years since the peak of the boom now.

 

Absolutely sure about it. Very high risk.
We have seen 50% capital losses and I believe similar in rent.

I have no clue whether it will continue to fall back? But I don't feel lucky today, you only have one industry and its mining. Unless I start seeing jobs come back I would not touch it, or I see a spike on prices as volume is reducing, I see neither.

MTR

 

That's why I believe it is much less risky now.

I think with China's Great Silk Road and whats happening with India, certain mining towns will proper again.

 

I only buy when I see a market changing/tightening/rising otherwise its just guess work, Cant compare the scale of the boom from 2001 to what is happening today and whether this will equate to the number of jobs required to move this market???

 

Absolutely understand that you are a momentum investor.

I lean more towards the value side of investing and still see 50-60% drops as massive reductions in risk.