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Earlwood: Growth/Potential/Advice

Discussion in 'Where to Buy' started by Moltzerman, 1st Jun, 2016.

  1. Moltzerman

    Moltzerman Active Member

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    Hi all, I'm new to this forum! I've been inspecting some Earlwood properties over the last 6 months, attracted by bigger blocks (compared to the Inner West), by its predominantly low density family friendly areas, Earlwood Public School, lots of parkland, decent cafes and the river.

    I've noticed that recently 43 Banks Rd, Earlwood sold for a record price of $3 Mil which wasn't a riverfront property and didn't have any views. Another one on Marana Rd apparently sold for around $2.5 Mil. Other recent sales in Earlwood suggest that it is still quite in the boom period. What are your insight into this? How will Earlwood do in the future? When would be a good time to buy in Earlwood?

    Thanks
     
  2. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    It would have been a good time to buy 3 years ago....
    What's your budget?
     
  3. Free_dom

    Free_dom Member

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    We bought our ppor in earlwood last year and don't regret it one bit. It's a little cheaper than the likes of Dulwich Hill and Marrickville and I think you get more for your money. The average blocks are about 500-600 sqm. I think growth will be inline with the rest of the inner west over the coming years. Prices have definitely gone up a lot in the last few years but so has all of the inner west.

    The going rate is about 1.2-1.35 for a 3 bedroom brick and tile home on about 500-600sqm.
     
  4. Moltzerman

    Moltzerman Active Member

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    Looking for a land size of 600 Sqm and I'm on a budget of $1.5 mil. Rebuilding a new house on the block. I may rent it out beforehand as well. However it's becoming much harder to find 600-700 sqm land in my budget range. Nowadays they go for $1.8 mil plus.
     
  5. John Bone

    John Bone Well-Known Member

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    There are only 13 houses for sale in Earlwood compared with a total 6300 private dwellings. This is what real estate agents call a tightly held suburb and there is more likely to be a shortage of supply rather than demand. There are only 4 properties listed with a land size and they are all less than 400sqm and the average mid price is $1.25m. All of the surrounding suburbs are similarly priced and all with very low numbers for sale compared to the available stock.
    There has been an average 11 houses sold each month for the past 5 years so the 13 on the market is slightly more than 1 months stock. Prices jumped dramatically from the year ending June 2013 to June 2014 rising from an average $850k to over $1m. Prices have risen about the same amount in the 3 years since.
     
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  6. Free_dom

    Free_dom Member

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    Does that budget include the build? 57 Wolcott st is a good indication of of what to expect. 3 bidders at the auction. All families with young children.
     
  7. Moltzerman

    Moltzerman Active Member

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    No probably another 700k-800k on top of that. 57 Woolcott st was high up on a good location but the land was smaller than what I wanted. 600-700sqm would be the ideal.
     
  8. Moltzerman

    Moltzerman Active Member

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    I have my eyes on 14 Spark St on 668 sqm. Recent sales on nearby 7 Dawson Ave which sold for $2 mil on the same land size tells me that the Earlwood market is still very strong. Is Earlwood bulletproof, whzen will the prices drop a bit?
     
  9. Free_dom

    Free_dom Member

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    I don't think Earlwood will necessarily drop in price but rather just slow down. I would just be weary of over capitalizing with the build.
     
  10. Moltzerman

    Moltzerman Active Member

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    Yeah thanks, would you recommend renting it out first before adding value to the property?
     
  11. Free_dom

    Free_dom Member

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    Depends on your long term view on the property. If you were inclined to sell you would need to live in the properly before renting in order to claim a capital gains tax exemption.
     
  12. Moltzerman

    Moltzerman Active Member

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    What about renting before rebuilding and living there as a PPOR?
     
  13. Free_dom

    Free_dom Member

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  14. Moltzerman

    Moltzerman Active Member

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    Lots of owner-occupiers in Earlwood are spending big on rebuilding homes, with some carrying out renovations/extensions. I see this as a positive for the suburb. Yes..no?