Lower priced future potential areas

Did you see Redfern, Newtown, Kellyville, Ponds or Liverpool in Sydney becoming hot?

Did you predict or invest in Moreton bay, Logan etc in Brisbane before 2016 by predicting on CG?

What are such areas in and around Sydney, Brisbane, Melbourne that are in the currently in the affordable (below 500k for any type of residential props) with potential for 50 to 100% CG in the next 5-10 years? Share your thoughts. Thanks.

 

Baghdad

 

Find the cheapest crappiest suburb closest to the CBD that nobody is buying in and go there. Eventually forced gentrification will happen because of proximity pricing. Ghetto chic.

 

My options now around Sydney would be apartments in Lewisham and Carlingford that starting price pretty much around 500k. For 500k in Brisbane I can easily get an apartment in CBD as well. For these locations I reckon to be safe investment given they are close to CBD locations or having highly appreciated school catchments.

 

care to define cheap and crappy and close?

 

Do you have any stock?

 

Lakemba, Wiley Park, Villawood, Greenacre, Chester Hill

 

Scumshine

 

Depression bay

 

I will throw out a couple of suggestions aligned with @Sonamic theory of "close and crappy".

Brisbane Southside the following: Rocklea, Salisbury, Moorooka, Mansfield, Murrarie. But you need to tread carefully with these places, there is a reason they have defied the growth of surrounding suburbs be it near to industrial areas, flood risk, poor connectivity, "ghetto" sections etc etc could turn around in the next five years or without a catalyst for change could stay (relatively) cheap for decades.

 

Rocklea is the first that came to mind

 

Reference to deleted post removed

I now understand why you had that rather random suggestion of Carlingford. Note, houses are one thing, units are another. Owning a house in Carlingford is fine (though better if it was bought preboom, rather than now). New units... not on your life. To be perfectly honest for me it's a no go as an investment. It's a nice enough area but lacks connectivity. Catching multi modes of transport to get to work is a pain in the butt and while they might put light rail/trams in at some point in time, I wouldnt bet on it being a sure thing till I started to actually see work on it happening. And with lots more units everywhere, it's not a standout area in any sense.

Addressing the other aspect of schools, Carlingford contains James Ruse High School, and sure it's the best school in the state. But you can only send your kids there if they get accepted and it's the hardest school in the state to be accepted into. So you can't just buy in Carlingford and expect your children to be able to attend that school.

I'd go for stock near Macquarie Centre though (if it was the right price). Lots being built there but it's right near all the services at Macquarie (university, shops, trains, buses).

 

Similar sentiments as a previous post...crappy suburbs closest to the city. I think at the below $500K bracket, you may need to stretch to middle ring suburbs. I can only shed light on Melbourne so my opinion is as follows:

Braybrook
Heidelberg West
Fawkner (Although most likely no housing stock under 500K)
Jacana
Broadmeadows

If you invested in Port Melbourne, Yarraville, North Melbourne, Flemington etc 15-20 years ago people would've laughed. Look what's happened now

 

Thanks for your response guys. Keep it coming.

How did you pick these? Appreciate your criteria.

 

When we talk about buying properties near the schools, it's mostly buying it as an investment to rent out for the families that have their kids attending one of the nearby schools. Me personally own a house and also looking for investment on apartments. I agreed house would have stronger CG, but I also enjoy the positive cash flow from high rental yield of apartments. As my investment portfolio would be buying a house for myself to live in, plus a few apartments to rent out.

 

I'm with Gockie. @Clarity94 what's the rent for the 1 bedroom you sold? What's the strata fee? There are many apartments in Carlo and new ones are still coming up along Jenkins near the transformers. I wouldn't buy any of them there or the ones on pennant Hills. But that's just me.

I like bass Hill and Chester Hill but houses are already quite expensive.

 

Just be sure to do your due dilligance on suburbs such as Rocklea (<11km from Brisbane CBD) which are unlikely to see substantial growth in comparison to nearby suburbs.

 

Yep it's industrial and 50% of it is flood affected, sometimes things are cheap for a reason

 

In terms of geographic vicinity to CBD and Parramatta, these suburbs are not too badly located, they are priced very low compared to surrounding suburbs. But these suburbs are dominated by certain ethnic group, which I think (and hope) over time will assimilate. Look at the Italians and greeks that came to Australia, they were probably not the most desirable people back then but now they have fully integrated. Also, these suburbs have a lot of old fibro houses, shopping areas a bit old, so definitely a lot of potential. Have a look at a suburb like Ermington. 10 years ago this suburb was full of old fibro houses selling for 400-500K now these old fibro go for over 1M and lots of people in Ermington are doing KDR and it's a very appealing place now, but it does have advantage of access to Parramatta river which is great lifestyle

 

Chasing cheaper suburbs for YIELD purposes that have a half decent chance of future growth is one thing, you are search primarily for yield but some security in your investment by having to CG potential.

When just chasing CG or cheapies for the speculative purpose of finding the next Mt Druitt be careful. People love a deal and can rationalise a crap purchase quite easily.

The holding costs on a $200k more expensive purchase ($600-$400k assuming 105% finance) out of pocket is not much all.,

If you are not a well educated investor who has done it before or knows someone who has done it before, chasing the growth is a dangerous game.. So many economic factors at play that the average investor doesn't think about. Yep it looks cheap enough, I can afford it, should do okay In a few years time.. That is the extent of it I hear..

If you are not educated and well versed in that style of investing possibly you should stick to the 8-15km CBD, house, near transport blue chip stuff.