Liverpool or Wentworthville?

Hi all
I am buying an OTF 1 bed apartment for myself to live in. It's all I can afford and I would like grants etc I work between Liverpool and Parramatta and am looking at OTP apartments in both areas. I want new.

Do people see more potential for longer term grown in Liverpool or Wentworthville? I can afford new one bedder in either. Cannot afford Parra apartment.

Thanks

 

*OTP

 

What suburb do you work in? Or do you work and travel in all areas between Liverpool and Wentworthville?

 

I have an office in Liverpool CBD and parra CBD my budget it around 450-500K. Liverpool and wenty are pretty comparable, wenty slightly more expensive I've noticed for smaller apartments

 

For longer-term reasons you are probably better renting one of the apartments in these areas. This is partly due to the risk of oversupply of OTP apartments in many parts of Sydney. Many of the young investors here that have multi-property portfolios have been able to do so by rentvesting.

Assuming you have the deposit and with the budget you have, you could buy one or more properties with better capital growth potential elsewhere ( interstate or larger regionals ). If you buy well you can add value down the track ( sub-divide, granny flat, small development, etc ).

Note - you will probably find that many lenders will be looking for 70% LVR in areas facing OTP oversupply.

 

Both areas should do well long term (10+ years) Liverpool because of infrastructure spending and Wentworthville because of Parramatta but you also need to think of short term. I think both markets are at their peak in terms OTP purchase. People have made some really good money buying OTP in both areas if they bought 2 or 3 years ago. Your main concern now would be if you do decide to buy then can you afford to put more than 10% if valuations dont come higher or spot on?

 

Given the choice, I'd go for Wenty over Liverpool. Its a bit higher socio-economicly and not as many new developments as is happening in Liverpool right now.

 

Havnt looked closely at liverpool since we bought a house in Cabramatta eighteen months ago, but my wifes girlfriend bought a 2 bed townhouse in cabra last week for 460k( just presuming price accurate ).
Think you could pick up a similar deals in Wentworthville & surrounds. Surely extra bed and courtyard is better value than otp?

 

You are right but I suspect the OP is a FHB and is chasing FHB grants and SD relief only available on new property.

 

This is what I would do if i was in your situation. Buy in an area where there is still potential growth left. I think Penrith and Kingswood are two such areas. During the construction period save up more money. Once construction is complete and you've lived in it for 6 months then use your savings, the equity from your property and the fhbg to purchase an established property in the area of your choice close to your work.

 

I had a valuer look at the OTP purchase in Liverpool and he said 450K for one bed plus study was about right compared to what what has sold recently- real estate.com has some new completed one bed units sold recently for around that price. I'm just not sure about Penrith- it's so far away! Other than the airport I couldn't see much else going apart from a new retirement village via Panthers and new high rises in the pipeline

 

Maybe in the middle ?

 

being on ground there, can you advise may I ask are you seeing lot of these liverpool developments are starting or even completing. Planned developments are different than completed i guess plus all the approvals and else....when you think market will be hit with these new developments..

 

For us it does not matter if they are planned, under construction or just being finished soon. We avoid them and go for the older blocks further away, that can be purchased for much less (around $350-400K currently, for a top floor 2brm unit) and then renovated. We don't need to be in a position where our clients' tenants can walk across the road to a new apartment block to rent brand new. But we are happy not to be paying $450K for a 1 bedder!

 

agree on this. Alan, any idea on when these developments are coming on market as i assume that would affect the rental yield and possibly growth as well including old 2 beders..

keen on your thoughts..

 

We just watch the cranes and the developments underway as we drive around on inspections. We think the new stock will tend to "drag up" the values of the older stock we are buying as new stock becomes old(er) stock after a few years anyway and there is always a market for older 2brm units which have a large price differential compared to brand new.

 

I'm interested to hear why all the new apartments are such a bad thing?? If you read any of the council documents the population in Liverpool expected to be as large as Canberra eventually. Surely they are just meeting demand and planning for the future? A one bed plus study for 450- do people see this growing in Liverpool in the long term?

 

yes, it all comes down to supply & demand. I agree that population growth in liverpool over long term looks positive. for me long term is 10-15 yrs. the problem is supply and demand don't happen line in line. My opinion is current development in liverpool eventually will turn to oversupply hence i'm keen to know how many developments get completed cause at the end of the that's what counts not the one in pipeline. I would like to see stats (if available) how many council have got their development allocation and population growth right.

 

Personally I'd go wentworthbille over liverpool

 

Geographically, Wentworthville beats Liverpool but I'm biased. It is on the main train line. Hospital. Parra CBD. Possibly less crime. Number of units going up in this area is scary though.