NSW Does the recent announcement for the rebuilding of Parramatta hold possible growth?

Hi All, new here so sorry if this is in the wrong forum.

So with the recent announcement that Parramatta will have its central area rebuilt into a Martin Place style area and with the prior announcement of the upgrading of the river area, do we see that this will have a large positive impact on the fringe suburbs? It is suggested that Parramatta will become Sydney 2.0 with the building of the new business high rises. Does this make suburbs like Northmead, Toongabbie, Wentworthville etc Inner West V2.0?

I am looking a investing in the next couple of years and am split on my thoughts on where, on one hand I could stretch myself and buy ONE place around Parra, on the other hand I could go for 2 or even 3 places in other areas.

The benefit of multiple cheaper places is if rent from 1 drops off it's not as catastrophic to my finances, on the other hand it is more places to maintain.

Questions:

Will the upgrades to Parramatta positively impact much or will it be a flash in the pan?

Is the idea of a Unit is Parramatta / North Parramatta a good idea as opposed to a house in the fringe and why one over the other? (if you have time to post this information)

Does the potential increase in Inner West V2.0 (if it happens like that) offset the risk of deriving all rental income from only 1 property?

What gives a better unit rental return for investment in these "City" type areas, 1 bedroom high quality apartment or 2 bedroom not so nice apartment?

Thanks for taking the time to reply to any of my questions, apologies if I seem like I am brain dumping, I had no idea forums like this existed and I have been wanting to discuss these things with people in a similar process for quite some time.

 

Hi there, yes I beleieved so. I'm currently working in Parramatta in my client office. There many companies like Cba which are looking to move to Parramatta. There are lots of new eatery, shops, light rail coming up, Westfield upgrade, New university, New multi story high school, etc.

The only thing I'm worried is over supply. Which is why I invested in the suburb next to it (Westmead)

 

Hi WinDyz, thanks for your comment, Does Westmead still offer some bargains? I lived there multiple times over the last 20 years in rentals and as a young man at the time (not so much any more ) it offered a great lifestyle, express trains to the city, nice looking suburb, park at the end of Queens Rd.

 

I live near Parramatta and the prices around Parra have increased significantly. I think there's still some room for growth but probably for houses. Judging from the anticipated building projects there will be a lot of apartments placing pressure on other unit prices. As for demand for rental I think it will be okay but not sure about yields.

 

Thanks larrylarry, appreciate your insights.

 

I'm not too sure if you can get a bargain for a house here... The price is very expensive. But I believed if you don't mind apartment, there're still value here. 2 bed 2 bath unit in Parramatta is already around 650-700k mark now. You can still find one in Westmead for 530-550k. The rent for a newer 2 bed is around 480-500 per week, where the older one is roughly around 430-440/week.

Also the new light rail , and the upgrade to Western Sydney Uni + Hospital will give it another kick in the future.

 

MP Geoff Lee spoke to us weeks before the recent NSW Election about the future development in and around Parramatta. He seemed determined to get them done. I agree with WinDyz that the houses in Parra are so expensive now as they are targets for developers. I was thinking about Granville where you can still get them for $600Ks but many on SS forum do not believe Granville is worth it. The famous Lebanese BBQ http://eljannah.com.au/ in Granville attracts me.

 

2/1/1's in Parramatta can still be under $600k, depending on condition and area. I would even say around $550k, look for something you can paint and change carpets. There are many buyers in the market that want something ready to go and not have to touch it for a while. Surprisingly because if I was buying I would be looking for property I can add my own capital to, also search Harris Park, Granville, Merrylands. Newer ones go for such ridiculous prices

 

There have been several threads in parramatta on somersoft .

In terms of your initial question , it certainly can't hurt parramatta but I don't think it will have a big impact in the near to medium term

The recurring theme from several " long term " forum members is that Sydney ( not just parramatta ) is approaching the top of the cycle so many members recommended buying outside Sydney . Brisbane and Adelaide , which are both in the early stages of their cycle seem to be the places getting the most attention .

In terms of parramatta , there is a lot of units being built or proposed and many are being marketed directly to overseas investors . Concerns have been raised as to whether this could lead to a docklands type situation .

We've looked at Westmead on several occasions in the past and if I was buying out there I'd probably be looking at one of the walk up units between Hawkesbury and the park . I don't think there is the same risk of oversupply as there is in parramatta and you have very good stable employers in the area with Westmead and the children's hospital as well as tertiary education facilities which always lead to a strong demand for tenants .

Cliff

 

You really need to do your own due diligence. That is, do your own research of individual places and crunch the numbers.
As already mentioned, if you buy some ugly 2 bedder and scrub, paint and retile, you'll be streets ahead. Also, Granville is a very good place to invest.
Let the numbers dictate your decisions. That means, not anywhere around Parra for a while but keep your eye on it for later.

 

Also be very careful about OTP in the current market. They can take a long time to become reality ( 3+ years ). Valuations may also not meet expectations if the market softens. This can cause problems with finance.

 

This occurred after the last boom . We had someone who had bought ? Three units in parramatta . Prices had dropped from purchase and they didn't have enough to settle .

Cliff

 

Hello Larry, are you talking about houses or units in Granville? Because i doubt you can find any house in that area for under 800k.

 

sammy1, units.