NSW Bankstown vs Blacktown vs Liverpool areas vs Campbelltown

Hi everyone, I am looking to buy an investment property (house on a decent size land) in Sydney. Yes, I know the market is probably at its peak, but hey, there is never a perfect time to buy, so I have decided to deploy my capital and invest now.

My max price is $1.1m, and after doing some research, I think I can afford to buy a house (or house+ granny flat) in of the following areas:
1. Bankstown area - a house on approx 400-600 sqm land (e.g. Punchbowl, Mount Lewis, Yagoona, Bankstown). Compared to similar distanced areas from the CBD, it's quite cheap.
2. a bigger house, ~600 sqm in Blacktown. A lot of investment going into that area.
3. approx ~600 sqm size in Liverpool area. Similar to Blacktown, a lot of investment going in.
4. a bigger house on a bigger land in Campbelltown area.

My goal is to rent the house out for ~10-15 years, at which point I might be able to subdivide and build a duplex (potentially!) or keep it until my retirement in about 20-25 years' time and sell after minor renovation.

Thank you for your informed suggestions.

Cheers,
Ala

 

I work at Bankstown, Liverpool and Campbelltown. Don't know much about Blacktown.

Out of the 4, from my understanding, I would rank them the following in terms of investment-grade:

1. Blacktown - seems to be near the new airport and gentrifying quickly
2. Campbelltown - Lower entry price but gentrifying and developing very quickly
3. Liverpool - a big economic hub. However, lots of high-rises which may produce an over-supply issue similar to Paramatta CBD. Also the price is already expensive
4. Bankstown - Closest to Sydney CBD of the 4 choices, but I feel that the place is still pretty run-down and has high crime-rate.

 

I personally see the most value in Bankstown out of this selection, although Allanh is correct about the negatives.

It's the closest area to the CBD, and very central in general. It is also a mini business district, with lots of amenities. It will also have the Metro line completed by 2024, which in my view is the kicker.

I also like the Blacktown/Seven Hills area.

 

Thank you guys - yes, my personal view is that Bankstown has to be a good value because of all the things John mentioned, and people are still worried about the crime rate, so the prices are relatively low for such a short distance to the CBD. I reckon, longer term there would be improvements in the socioeconomic class and the values will pick up, but it might take a decade or two.

Blacktown is very appealing, but the prices there have grown so much in the last year, that I fear it might be a little overvalued?

What are your thoughts about the quality of tenants in those areas - in which area are you likely to get good, stable tenants who will look after your property?

 

I would pick either Blacktown or Campbelltown. I wouldn't be interested to invest in Liverpool or Bankstown with that kinda money simply because the stigma is still pretty strong in those areas and crime rates remain fairly high.

If you want to get good tenants and future emotional buyers I think the stigma of an area is very important. Unless you want to do development projects than it is a different story.

 

I think you will have potential problems with tenants in all of the areas you mentioned. But to be fair, all land lords in all parts of Sydney will have problems with tenants at some stage.

 

Out of those suburbs, I would buy in Blacktown or Campbelltown as they have been attracting a significant amount of infrastructure spending. See: Western Sydney airport set to eat Victoria’s lunch

 

Thanks for these articles - agree that the infrastructure investment makes Blacktown very attractive.

 

I see the most opportunities in 2560 and 2567 though the latter is fully priced atm imo.
I don't like Bankstown and Blacktown for a long list of reasons.
Liverpool is changing fast and scattered, hard to find value.
My alternative would be St Marys, St Claire if you can beat Skater to the bargains.

 

Good luck with that. @skater is on constant high alert to pounce.

 

I feel that you've left an area off of your radar.

Blacktown ends at Mt Druitt and the satelite suburbs just off to it. The new rail line is at St Marys (Penrith area). Heading out towards Badgery's Creek is St Clair, and the next station west of St Mary's is Werrington.

Thanks guys. I love a bargain.

 

I think bankstown offers the most value and I think the metro is very important and it's very close to the city.
Having said that may be in the short term you might do better out of blacktown with more infrastructure spending there? Maybe?. I don't know blacktown I just know that it's further away quite a bit further away.
But certainly in the longer term bankstown has the best geographic position of any of those and the best accessibility.

 

All of those areas will give you what you want although I think Blacktown has already experienced significant growth. Be aware that Liverpool has loads of apartments.

Why rush for these areas though? Surely when interest rates rise in the next few months these will be the first to experience falls as they are the lower socio econimc areas of Sydney.