NSW Ashfield

Keen to hear people's thought about Ashfield. I looked at Ashfield some 6-8 years ago to buy an IP but bought elsewhere. My pros & cons for Ashfield are:

Pros:

• Very close proximity to the city
• Good transport, with a train station and buses. Only 10-15 mins train ride to the city.
• Lots of shops and can see some new commercial developments
• Low rental vacancy rates?

Cons:

• Lots of new large apartment developments. Saw few newly build and OTP developments for 50+ units each.
• Very low rental yield (probably similar to many places in Sydney)
• A lot more rentals coming to market from newly built units, which could increase rental vacancy rates and/or push rental yield lower
• CG could be stagnant for now, with some newly built units back on the market close to prices paid OTP

The new large developments make me a bit nervous. Although not quite Green Square size yet but concern that supply > demand. On the other hand, maybe it'll become the next Chatswood?

I'm probably priced out of buying houses there but looking at units if sellers have to discount them. Would anyone buy if you can buy new units at 5-9% discount to initial OTP sales?

 

Units are coming up everywhere. It is not really a Ashfield problem alone.
Trains are decent. All surrounding suburbs are more expensive. I would like to own one in there.

 

I am actually living in Ashfield.

Fundamentally, it's a nice suburb. It got train and bus services to city. It got shops and next suburb Burwood got a big Westfield shopping centre and Plaza. Burwood price point is much higher than Ashfield.

However, as above mentioned, there are a lot of apartments coming up in Ashfield.
Actually, there are a lot of valuation issue happening especially off the plan apartments, I am seeing this at first hand almost every week.

I would invest in older units or apartments. I will not touch off the plan apartments even is 5%-10% discount from its original asking price. Initial asking price for the off the plan apartment is overly inflated anyway.

In my opinion, do expect flat or slow grow over the next couple of years. look for fundamental.

 

@TaylorChang

How bad are the valuation issues? I assume you work in a bank or a broker?

Agree that OTP is generally overpriced.

Are there any areas or streets to avoid in Ashfield?

 

hello - also live here

great place with plenty of food, transport, retail options - redevelopment of ashfield mall certainly helps, citywest link via frederick st is a main thoroughfare which is jam packed on wkends/peak hour but can get you to city in 8-12min off peak from parra rd, westconnex coming through as well

doubt it will become the next "chatswood" though as the income levels are vastly different

plenty of older units/flats around - do a googlemaps view and you can see row upon row of 3 storey walk ups through alt, bland , chandos and surrounding streets , fair few on sth side also

better areas around trinity grammar and pocket adjacent to ashbury and summer hill but not so accessible to transport

as TaylorChang stated plenty of new OTP coming online soon as well as newly built apartments <5yrs around

IMO would look at Croydon as a better investment opportunity, less dense , less units around , much lower OTP pipeline with a quaint village atmosphere and redevelopment of the train station, just a hop and a skip away from burwood - although higher entry point and lower yields compared with ashfield

hope this helps!

 

Lived in Ashbury for 5 years and Croydon for 9 years and I love the area, though it is getting more and more crowded (probably a good thing from an investor's pov). Traffic was always a problem and the West connex made things easier for a while. I used to drive from Croydon to go to yoga in the city 3 or 4 times a week - no way I could do that now. Trains are good from there though.
Agree with @Hwangers about Croydon and Ashbury. Ashbury is not far from the station really - I used to walk to and fro every day but I'm old school, I suppose.
Croydon is a lovely little suburb. I would love to buy there. Again, trains are great - a short walk to Burwood or Ashfield for an express - car is a pain.
Edit: I meant West link not West connex.

 

@Hwangers and @Wattleldo, agree on Croydon. I haven't been there for years now but I like its location being near both Burwood and Ashfield. Will check it out.

Haven't been to Ashbury though. Will take a look.

What about areas like Croydon Park? It is a bit far from train station.

 

Croydon Park is a little underrated - sits in between 2 train lines but still close to Burwood for good shops.

 

I second Croydon Park as a good pick for the area. City buses are very closeby (though the Burwood-city fast train is too far to walk). The Campsie train line is totally walkable though it is an all-stops train which slows travel time to the city which makes it less helpful).

Despite this, Croydon Park is a great suburb and IMHO still more affordable than its surrounding neighbours. Lots of parks/greenery, old houses that are well maintained/presented/renovated and that are quite different architecturally/stylistically which makes the streetscapes interesting and prettier to drive down. There are basics like an IGA, hairdresser, vet, pub, post office etc. Plus McDonalds, Subway, servo's, a couple of cafes and nice restaurants etc.

Full disclosure: I do hold in Croydon Park so I indeed have a vested interest. The holding has performed very well from a CG perspective. Mant of the 'house' owners are still those old Greek/Italian families who really show their care of their houses and increase the sense of community felt in this area, adding to its appeal.

As for Ashfield, I do think this area will perform solidly as well. The great bus/train links are very efficient, Ashfield Mall has a lot of retail plus there are many dining options. I do think the train station public carpark could do with 3 more levels being added though! (A la Seven Hills station). Agree with others that the more desireable area is the section closer to Summer Hill. This area is beautiful with tree lined streets full of Edwardian and Victorian architecture and century old trees etc. Its a little further to the station, sure, but much nicer area overall and only 3-floor walk up blocks (no high rise).

 

Yes Croydon Park is great too. Of course, you have to cross the Hume Highway to get to the stations but not really a problem most of the time. I used to go for my walks around there. It's anpther under-rated area but very neat and suburban. There is almost a grid-like set-up and lots of roundabouts, roses, garden gnomes, succulents, lemon trees, you get the picture. The people who live there wouldn't want to live anywhere else. I hope that doesn't change. It also has the Cook River and sports fields and bicycle track - a big plus.
The whole area used to be 'affordable' but it's all Sydney prices now.
Only problem with Summer Hill area and closer in is that there have been some very dodgy renos done in the 90's where mansions were turned into pokey little one bedders. Too many around like that but still definitely worth a look.

 

Yes, I am a broker. Hence, I've seen good, bad and ugly side of property investing in the area.

The off the plan valuation passing on my desk are usually 3% - 5% below the purchasing price. Those property are high rise apartments around the train station. I even met someone bought 3 of them in the same complex and had valuation problem. Now he is thinking to sell his existing property to settle those off the plan shortfall. ( which it's a terrible idea, I am trying hard to talk him out of his idea. but sometimes, it's hard to convince people to let go the deposit on the off the plan property and keep the existing old property... that's the story for another day).

In general, north side of Ashfield has more units, which I think it's a good entry point to get into Ashfield market. Around the park within 10 minutes walking distance to train station is good. Chandos, Cecil, Oprington, Webb, Alt, Bland, are all good street. Elizabeth street is a busy street. I would avoid Loftus and Curt street, because westconnex is being built at that session of the Parramatta road.

South side has more houses, if you are lucky you can pick up the house for around $1.2 - $1.5M mark. It will be good for a professional couple with young kids, close to train, bus, city and also have a bit of backyard.

I hope above information help

 

Thanks for all the feedback. Definitely more research for me into those areas and hopefully pick up an IP there in future.