NSW Rouse Hill / North Kellyville for PPOR?

Discussion in 'Where to Buy' started by fwmonger, 24th Nov, 2019.

Join Australia's most dynamic and respected property investment community
  1. fwmonger

    fwmonger Active Member

    Joined:
    21st Oct, 2019
    Posts:
    35
    Location:
    St. Leonards
    We are considering buying a block of land in one of the new developments in Rouse Hill or North Kellyville to build our PPOR. We started to consider these suburbs after being unsuccessful at a few auctions in Castle Hill and Baulkham Hills. The properties we were after sold for far higher than recent comparable sales. With the market picking up steam, we only see our chances go down further in the future.

    Pros for Rouse Hill / North Kellyville
    1. Affordable for a $1.2 mil budget. These are probably the only suburbs where we can afford a decent free-standing house in our budget if we don't want to go West or Southwest.
    2. Easy commute to the city because of the Metro. We understand that we will still need to take a bus or drive a bit to the station.
    3. A nice town centre at Rouse Hill.
    4. Decent schools
    5. Being in 'The Hills' although we don't know how much these suburbs are similar to the other established suburbs in the hills.

    Cons against Rouse Hill / North Kellyville
    1. No tree cover. We doubt this will improve as the land sizes are too small for occupants to plant trees in the front yard or the backyard.
    2. There may be an oversupply issue.
    3. There may be traffic congestion during peak hours after all the new houses are built.

    Can someone familiar with these suburbs comment on how true or not true our list of pros and cons are? Are there any parts within these suburbs that we should avoid?
     
  2. sumterrence

    sumterrence Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    448
    Location:
    Sydney
    I think you are pretty much spot on, but as your ppor I wouldn't too concern on over supply.

    Look at the ponds, back in 2005 it has the same issue. I personally think North Kellyville has more potentials given the lands are generally larger in compare to Rouse Hill and it is still not too far from the town centre.
     
    Esh likes this.
  3. Trainee

    Trainee Well-Known Member

    Joined:
    24th May, 2017
    Posts:
    7,887
    Location:
    Australia
    Are you dead set on new?
     
  4. fwmonger

    fwmonger Active Member

    Joined:
    21st Oct, 2019
    Posts:
    35
    Location:
    St. Leonards
    Not really. In fact, I prefer already built. But, it appears that it would cost me the same, if not less, to build new. I'm happy to be corrected here.
     
  5. MammaMia

    MammaMia Member

    Joined:
    4th Nov, 2019
    Posts:
    13
    Location:
    Sydney
    For someone who lives in the area, I would recommend buying existing. Some of the new builds are appalling quality. Recommend looking at established areas in Kellyville or Rouse Hill, unless you find an incredible deal in NK.
    Getting in and out of NK currently is something to consider as well.(Shambles at the moment!!)
    I would also recommend looking at Beaumont Hills (closer to Samantha Riley and easy walk/or bus ride to the Metro station)
     
    Esh likes this.
  6. fwmonger

    fwmonger Active Member

    Joined:
    21st Oct, 2019
    Posts:
    35
    Location:
    St. Leonards
    This is exactly why I am not looking to buy new, already built ones which are probably built to sell. I either want -
    1. Established properties (10+ years old). These happen to be in nicer, leafier parts of these suburbs.
    2. Build a new one myself so I can build with good quality. This is only possible in not so nicer North Kellyville.

    Both these options seem to cost the same for comparable block size and home sizes.

    What are the reasons I should choose one over the other?
     
  7. Paul@PAS

    [email protected] Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    18,445
    Location:
    Sydney
    I have lived in Kellyville for almost 15years. NK is a shambles and a example of bad development and how Council have no apparent co-ordination and planning for the overall area. Samantha Riley Drive is a great example of this - Its a patchwork quilt in progress. Poor roads, poor road design and width and a hotch potch of a small dev here and another beside it and so it. Withers Rd is a disaster with no plans apparent to fix it. And despite being many Kms from decent transport there are huge apartment buildings dotted about. NK seemed to grow fast where the property market boomed and many people opted for NK to save a few bucks. Now the land seems to be struggling to move.
     
    Esh and MammaMia like this.
  8. Thomacino

    Thomacino Well-Known Member

    Joined:
    9th Nov, 2018
    Posts:
    172
    Location:
    NSW - Sydney
    Unless you are going against traffic it is irrelevant where you live. I frequently travel on Pennant Hills Road south bound to M2 interchange or Pacific Highway and doesn't matter if I leave at 7, 8 or 9.30am its always bumper to bumper..

    Don't go near a project home builder. Period.
    An experienced old school builder once told me, back when he built a house the purpose life was 100 years, nowadays its designed to last 30 at best.
    I agree as when I am undertaking home inspections the 'new' project homes after a few years are in pretty average condition (not cosmetically) and do not age well.
     
  9. hash_investor

    hash_investor Well-Known Member

    Joined:
    11th Oct, 2015
    Posts:
    2,322
    Location:
    Sydney / Canberra
    You answered your question yourself. If an older home is more expensive means area is more desirable and will have better CG
     
    Danny370z likes this.
  10. wombat777

    wombat777 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,560
    Location:
    On a Capital and Income Growth Safari
    I live within a 10-15 minute walk of Rouse Hill Town Centre and the railway station (in "The New Rouse Hill Estate"). I find the convenience fabulous. Rarely use my car now. Had to go up to Castle Hill on Saturday at midday so I just caught the train.

    You can find free-standing houses in the $1M to $1.3M range. The propoerties built before 2014 generally have block sizes in the 300sqm to 450sqm range.

    Properties built in the last few years have smaller block sizes but they are predominatelty free-standing.

    Strongly consider prioritising walking-distance to the railway station as this helps to put a floor under house prices when there are drops. There will always be better demand for well-positioned properties.The metro noise may be a factor but it's not an issue for me as my place is about 500m from the viaduct.

    I have a small backyard but I find that convenient since I don't have a huge garden maintenance burden (more time on weekends) and I don't have to worry much about it when I travel. My outdoor area is large enough for entertaining.

    Another good aspect of this area is the proximity to the extensive network of cycle and walking tracks.

    Also look into new builds becoming available near Tallowong station.
     
    Esh likes this.
  11. Danny370z

    Danny370z Well-Known Member

    Joined:
    1st Nov, 2015
    Posts:
    235
    Location:
    Sydney
    Not sure on your current circumstances (ie Renting) But have you factored in total costs if you build such as non tax deductible interest while its being built, most likely there will be delays. And if its not turn key you can add another 100k for landscaping and completions. Food for thought
     
  12. Illusivedreams

    Illusivedreams Well-Known Member

    Joined:
    3rd Oct, 2017
    Posts:
    2,299
    Location:
    Sydney
    I happen to disagree with Project builders.
    Many and for a better arts most are pretty good.


    Have lived in Many project homes and have been excellent.

    Current one is Masterton coming on to 16 years old.
     
    Esh likes this.
  13. Thomacino

    Thomacino Well-Known Member

    Joined:
    9th Nov, 2018
    Posts:
    172
    Location:
    NSW - Sydney
    To paint the project builders with one brush is naive, I am referring to the 80/20 rule.

    With all things, Masteron/Metricon and many others will always have a subpar builder.
    My context is private builders will make a decent attempt as they are only good as the last build they completed.
    All subjective opinion of course..
     
    Esh likes this.
  14. Paul@PAS

    [email protected] Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    18,445
    Location:
    Sydney
    Some of the larger builders have excellent supervisors who drive quality and defect issues since time = money. Defects cost further delays and rework. Other medium sized builders dont have that and it can show. Our Clarendon home is 15 years and just last week I found they lined all wet areas with 16mm solid boards not 4mm cheap ply. And I reckon they used so much ceramic tile adhesive that the wall was close to bullet proof.
     
    Esh likes this.
  15. fwmonger

    fwmonger Active Member

    Joined:
    21st Oct, 2019
    Posts:
    35
    Location:
    St. Leonards
    I gather these from the thread and some further research -

    1. Established houses are all in Kellyville, Beaumont Hills and the older part of Rouse Hill.

    2. New developments are all in North Kellyville and the newer part of Rouse Hill.

    3. I should avoid North Kellyville as getting in and out of the suburb is, at the moment, painful.

    4. I should avoid the newer part of Rouse Hill as the same issues as North Kellyville may pop up in the near future and also because the block sizes here are too small even compared to North Kellyville.

    So, looks like buying an established house is the way to go. How difficult is the commute from those parts of Kellyville which are far from the metro? Is it as bad as the commute from North Kellyville?

    Also, is there a plan in place to fix the commute issues with North Kellyville? How about public transport in North Kellyville?
     
  16. Paul@PAS

    [email protected] Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    18,445
    Location:
    Sydney
    They are all very good questions that council didnt address at all when planning the NK land release. The state govt and landowners were continually whining and eventually the state govt allowed the land release as a grandstanding effort. Thanks ALP. So now there are terrible roads with homes built too close to allow for widening and little or no integration. And the council has collected a massive sum in contributions and spent bugger-all. To fix the two land roadway would involve closing it.

    The solution ? They built huge carparks at Kellyville and a few other metro stations. And approved new build homes with 1.5 car garages and little or no street parking as the roads are too narrow. Metro does have some (interim bus routes and a on-demand thing that looks like a fail). In time they will release routes - maybe. They are making up the transport solutions for the metro as they go and have maintained the city bus (for now). That wont last.

    Beaumont Hills is also worth looking at. Its existing development and seems well planned and decent roads and bus services through to RH. And a hill top view.
     
    fwmonger likes this.
  17. hash_investor

    hash_investor Well-Known Member

    Joined:
    11th Oct, 2015
    Posts:
    2,322
    Location:
    Sydney / Canberra
    Established houses in most of these pockets are not very old either and they have wider streets. Commute is not that bad as it sounds. Bella Vista metro car park is quite big and has spaces until after 8AM in the morning. Parts of Kellyville closer to Castle Hill can access showground station as well. There are buses on green road that can take you to castle hill stations. Or you can cycle to one of your closer metro stations.
     
    fwmonger likes this.
  18. KJA182

    KJA182 Well-Known Member

    Joined:
    5th Sep, 2018
    Posts:
    125
    Location:
    Sydney
    I think there is an oversupply issue for now, but I am sure that will change as young families are continuing to move into the area.
     
  19. fwmonger

    fwmonger Active Member

    Joined:
    21st Oct, 2019
    Posts:
    35
    Location:
    St. Leonards
  20. Trainee

    Trainee Well-Known Member

    Joined:
    24th May, 2017
    Posts:
    7,887
    Location:
    Australia
    Your list ranges from 1.3 to 1.7, which is a very weird range unless your max is more than that.