Austral / Leppington area

Hi Experts.

Current situation – Starting at property investment. So far have a townhouse in Toongabbie, NSW (which was original PPOR). Almost – 40. Bit late in property investment game.

Currently looking at

Lot 1, 145 Edmondson Avenue, Austral, NSW 2179

Any thoughts for investing in duplex potential land ? And in Austral/ Leppington area particular?

What are propect compared to other regions in sydney area like box hill / North Kellyville? Or Gordon area

Purpose of investment - Tax saving and capital growth

Thanks for your insights

Cheers
MKB

 

At that purchase price ... hardly worth the effort.

At $550,000 buy maybe if you built it yourself.

 

Thanks for response.

Ignoring property and its current price, what is your view on this area compared to other area i have mentioned?

 

Hi mate, Austral/Leppington, Box Hill and North Kellyville are very different to Gordon.

Gordon is an established suburb with existing houses. Most houses are renovated and occasionally you get knock down. Average house price is $2m+ And blockes are 700m2+

There are some apartments up near the highway.

Austral/Leppington, Box Hill and North Kellyville are land release areas under Sydney Regional Growth Centres. Entry price for house and land would around $1m at a guess. This is for a brand new house. Blocks range from 300m2 - 700m2 with some going over (especially in the E4 zones in Kellyville or box hill.

The building envelopes and scale of houses permitted in the growth centres is much larger than Gordon.

There is also strong demand for Gordon. Growth centres, due to cookie cutter type blocks, endless supply and predominantly project homes which all look the same, the market value is much more volatile. Box Hill has recently taken a hit.

The demographic of the target market is also completely different in Growth Centres vs Gordon

 

Thanks for response. I meant Gosford not gordon. Apologies

 

Austral and Leppington suburb is already expensive to buy now since the newly announced Badgery Creek airport adding the value of the property in that area.

 

My friend's bought a house and land package in Leppington. Settled last year. tried to rent out but not available due to high supply. Not liveable due to high level of construction/dust in surrounding areas. Not to mention 90mins one way travel time to the Cbd. Very low density population at this stage. my friend needs to close door and go to sleep at 8pm. its like a rural area. May take another 10 years for population to move in...

Most new area like these have the land next to train station reserved for future development. Hence ur land/house is not walkable to trains. Adding this to the 1hour+ travel time on train...

Redundant land and vacant new houses there. U will mess up pretty well withu duplex plan.

Same thing applies to other new area like box hill, schofield ... Honestly, not many pp wants to live there and travel 90mins to work. As soon as they have sufficient money, they will move closer - limited growth as no one to bid for higher price especially given the premium price now. Low demand high supply is confirmed in the next 5-10 years for these area

Dont fooled by fake/artificial growth report for those areas, only 1 tier developer has the margins.

 

Is that also same fate as the Edmondson Park NSW 2174?

So I guess, it is better to buy the existing older properties outside of those suburbs you mentioned @qwertyui

 

Yes, for sure the same Edmondson Park. As you inquired these highly spruiked, low fundamental areas, it is recommended to listen to the property couch podcast episode 1-20 at least. Very valuable ones, only a couple of listening hours will save you hundred grants in bad investment

 

The amount of supplying from a sale and rental perspective is scary not just in Austral but also in the surrounding areas.

If you are going to develop (especially your first time) then stick to well established areas.

 

Never invest for the primary purpose of tax deductions, unless you are intentionally losing money or laundering

 

Agreed! Spend a little more and be way closer to the CBD

 

Thanks for your comments. I understand that sales for both sale and rental is one higher side and demand on the lower side. But we look at 5-8 years horizon , considering infrastructure investment in this area namely - airport, science park and STEM school at Luddeham and competitive price compared to other areas, is it still a bad area for investment ?

 

Hey Guys

Would like to T off this topic as I’m also looking at buying a house and land package at leppington.

My borrowing capacity is quite low 650k and will require me to sell my unit at Parramatta.

is this a Good move? Considering the growth potential of this suburb being closer to the new airport? During land settlement will the valuation come lower or higher that purchase price?