NSW Middleton Grange potential

Hi All,


I have just put a deposit down on a two story newly costructed house being a 4x2x2 on 357m block at Middleton Grange in South West Sydney. Paying $790 with likely rent of $590 p/w or 3.88% yield. It is close to the big Thomas Hassall Anglican school, close to the M7 access and close to the proposed site for Middleton Grange Town Centre ( if it eventuates ).

I know everyone is saying Sydney is at our near peak. Some are saying that we can expect upwards of 20% drop in next few years. I am optimistic, well I have to be outlaying this much for an investment property. The obvious closeness to the Badgerys Creek Airport, M7, M5 and the expanding south west corridor. My strategy is to hold for 10 years and then either sell to my son or offload it. Will be negative geared obviously. I suppose I am having the dreaded buyers remorse.

• Have I spent too much
• Will it grow in 10 years
• Is it a growth area or will it drop off. with the multiple new estates being developed ...

I know the current medium price for Middleton Grange is $790K so I bought bang on that mark.

Anyone have thoughts ? I tossed up at buying similar at Oran Park, Jordan Springs or Marsden Park but the sheer amount of rentals on the market scared me.

Thank You.

 

I grew up in that area and 790k is ok if the land is a decent size and specs of home are good. Did you already exchange contracts? I'd buy in Austral right behind Middleton Grange.
That yield is quite low. I know people from Elizabeth Hills selling their expensive homes and moving to Middleton Grange so you'll see the prices go up a bit

 

Did they throw you in a snorkel at least? You gonna need it.

They have been talking about that Town Center for the past 10 years....

Thing only thing that it has going for it is most of the other new estates are further out.

 

For many reasons, I think now is the time to avoid fringe suburbia like the plague. That suburb is mostly held by builders who've bulk purchased blocks. It's mostly a very expensive buy in for what it is (tiny blocks on the edge of Sydney at least an hour's commute to the CBD).

It's disproportionately targeted by new buyers and investors who can't afford better suburbs, and these buyers will be more vulnerable in any recession or correction, with far more incentive to sell. As builders sell, if they get impatient and discount, individuals will not compete. In Ireland, most of the crash (and it was a huge crash) was contained to these sorts of city fringe developments. Middleton Grange looks like a ghost estate waiting to happen to me. At best it's a risk.

Honestly I think now is the time to avoid new development areas (house and land packages, off-the-plan apartments), they are too oversupplied, very pricey and if the market is at peak, it's going to have poor returns.