NSW First Home Buyer - North West Sydney

Thanks @Mumbai for the point you have raised. I would be more looking at it from a PPOR perspective as I am not 100% sure I will be selling it in 5 years. Taking this into consideration, would you have any particular recommendations of some suburbs that would be a good fit?

 

Thank @euro73 for the Merrylands suggestion

 

I don't have much to add, I occasionally drive from the city and it takes an hour on the freeway in the car. I would personally choose something closer and make some compromises. I've seen all the land for sale and it seems very expensive to me given the location, public transport etc. But i don't think the target market is people who work in the city CBD.

 

My take on old vs new. I've lived in both older suburbs (Quakers Hill) and new suburbs (Elara Marsden Park). While true that older suburbs gives you bigger land. But you will get a mix of residents as some may have been living in there for ages with a mix of housing commission around you. But for newer estates becuase the entry is already higher than old estates so generally you get more professional buyers that can afford the more expensive newer built houses.

2nd observation is that price growth between old and new are actually similar in today's market. As newer estates tends to be more desirable and attractive to young families and they usually happy to pay more for a newer and nicer house for their kids. On the other hand older houses on bigger lands in older suburbs gives you more options down the track if you have the desire to add value or develop. But jot everyone is either hands on or have the financial ability to take on these projects.

 

I would look at the Blacktown suburb and surrounding. It's got fast train servicing it and you can find houses that are in your budget.

 

Oh well. Guess developers have to make a living too.

 

[QUOTE="sumterrence, post: 829752, member: 400"

2nd observation is that price growth between old and new are actually similar in today's market. As newer estates tends to be more desirable and attractive to young families and they usually happy to pay more for a newer and nicer house for their kids. On the other hand older houses on bigger lands in older suburbs gives you more options down the track if you have the desire to add value or develop. But jot everyone is either hands on or have the financial ability to take on these projects.[/QUOTE]

Don't think am totally onboard with this observation. Newer estates do attract young families and they tend to buy there a lot. But, dont believe price growth is at par with older ones.
Most young families are not investors and dont care if their house prices grow or not. They are happy with thier purchase.
However, if you are putting the investment hat on, these estates keep popping up, more houses on smaller lands. So, the young families have lot of options when they are in the market.
Older houses are usually on larger land base, in established suburbs, so the land value drive the prices up.
I am not saying new estates are bad buys, but different strokes for different folks !

 

You could see increasing prices based on developer prices, but that doesn't mean you can sell your existing property for more. As they are new, there probably isn't much turnover of existing properties.

Its misleading to look at Sydney for the last 10 years.

 

The issue you have is you are looking at the recent unprecedented growth rates that are extremely unpredictable in the largest city in Australia and expecting them to continue in the future. All your hopes are on that continuing. What if it doesn't?

If your plan is to sell in 5 years will you sell for your purchase price as well as:
- The interest paid over 5 years
- Stamp duty
- Any potential maintenance required
- Selling costs
If i was in your position I would most likely do one of the following:
A) Purchase as much land as possible with a livable house that could do with a minor reno in a desirable location (not necessarily the location that suits you best). I would complete the reno slowly over the 5 years and sell. This way you add value despite what the market is doing
B) The above but consider renting rather than selling if market conditions are not good.
C) Rent in an ideal location that suits your lifestyle and enjoy. Save the difference between what you would pay in rent and the options above and invest or build a deposit for a house you will potentially buy in the future.

 

that is not north western sydney

 

Thank you so much everyone for some of the points you have mentioned!

@hash_investor, oh really, what is the correct area then? Also, what areas would you consider if you were in my place?

I have had a look at some of the current listings. Here is what I found within my budget:

• 300 sqm House in Marsden Park
• 350 - 400 sqm Duplex/Town Houses in Merrylands

Would you guys say that there would be no major differences between these two places in terms of highest growth potential?

 

We live around the Marsden Park area. It's reasonably priced now (when compared to the Ponds or Schofields for example) - but that is because public transport here is quite poor. There is the M7, but the nearest train is Schofields (6 minutes). Tallawong station is great, but is a 10 minute drive away.
Until the NSW Gov extends that train from Tallawong -> Schofields -> Marsden Park - it will remain cheaper. Probably for the next 10 years, unless the NSW Gov decides to fast track it...

There is also overpriced land trying to be sold in Colebee - the new estate that is being developed between Townson Road and Alderton drive (to the left side of Victory road) are a prime example. If a person wanted to buy there, they should be negotiating hard - that land is selling very slowly.

I can't really comment on Merrylands.

 

Hi @Perky29, you raise some excellent points. Thank you!

Based on what you have said, I have two main questions:

1. Would you buy in the Marsden Park area again? Also, if you decide to sell your property, do you think you will get some gain?
2. I have also found that land in Colebee is much more expensive. Is the high price justified or is Colebee very similar to Marsden Park?

I would appreciate your thoughts.

 

Hi,
Yes to number 1, but not right now, and we would have some gain.
2 - Hard to say. Marsden Parks advantage over Colebee are the schools - but then Richmond road is terrible between Elara and Colebee! Colebee is a little closer to both the M7 and the train stations.

 

Have you looked at the part of Rouse Hill near the new Tallawong Station???

https://www.realestate.com.au/property-house-nsw-rouse+hill-133586402

There is a new hospital that will be built within 1-2 kms ..

New shopping centre and schools going in at Tallawong.

Rouse Hill Town Centre a short walk or train ride from Tallawong Station ( about 20 minutes to walk, 3-4 minutes on the train ).

Trains direct to North Sydney and the CBD from 2024 ( you won't have to change trains at Chatswood ). Major employment hubs at Norwest and Macquarie Park.

Capital Growth on my own house at Rouse Hill is around 48% in 6 years ( 7% per year ).

The train line drives capital growth. People pay up for walking-distance to train station ( aim for no more than a 15 minute walk ).

Rouse Hill Town Centre is very popular and Tallawong will become a walkable precinct quite similar but on a smaller scale.

See also

Tallawong | Metro Northwest Places | Landcom

https://metronorthwestplaces.landco...nts/Tallawong/8a4c0ce5d0/TallawongMap_Web.pdf

https://metronorthwestplaces.landco...cinct-south-concept-proposal-eis-overview.pdf

 

it will be when they split suburbs into inner, middle and outer Hills.

 

Is the new metro station for MArsden Park confirmed?

 

No. Wouldn't completely rule it out though.

Map revels massive expansion of Sydney Metro network with 39 new stations

You will need to be patient.

The North West line was on again off again for over a decade. It was first announced in 1998 and completed in 2019 - so took about 21 years.

Sydney Metro Northwest - Wikipedia

 

Where did you end up buying?

 

IMO, Marsden Park won't get a train station till the mid 2030's, perhaps 2035.
Maybe if we have another GFC type crash we may get some Fed and State Gov intervention to build more infrastructure and then this will finally happen.