NSW Schofields vs Box Hill

Hi all, this is my first post into this great forum, and am generally new to property investing, so all your advice is appreciated.

We are currently looking to invest in our first IP, the two I have in my shortlist are:
- A 4 BR duplex in Schofields, 2 years old, asking 729k, rent rate about $550
- A new Allam 3 BR + Study in Box Hill, asking 740k, rent about $550-560

We are looking for for capital growth, while also opening the possibility of the property being one of our kids' future place to live one day. This will be our first IP. Which one do you think will be better from this respect ?

Your thoughts greatly appreciated

 

Why those areas?

 

We are thinking of maybe future growth due to the proximity to the new metro. Alternatively, for the same money we can get a 3 BR townhouse in Baulkham hills too. This is where I get into a quandary on where should we go. I am interested to hear everybody’s thoughts here, it might even be we are not looking at the right factors

 

Vacancy rates are a big concern if this is true!

• Box Hill, 25.08%, Investment Property Box Hill, NSW, 2765
• Schofields, 15.46%, Investment Property Schofields, NSW, 2762

For context the Hills District vacancy rate is 2.14%.

Even when you have vacancy rates in the 1.5% range in my experience it can take 4-6 weeks to find a tenant.

I think that due to the amount of potential new supply in Box Hill, capital growth there will be some time away.

I think for capital growth you are better looking for investments closer to trains stations ( Schofields, Tallawong, Rouse Hill, Kellyville, Glenwood ). Aim for less than 1.5km or no more than a 10-15 minute walk. Ideally a detached house.

 

Thanks Wombat, thats great input.. how would you compare these 2 areas against somewhere established w/o a train line like Baulkham hills or Northmead ? For the same price I can get a 3BR townhouse there

 

If you were to look at Baulkham Hills focus on the areas closer to shops, transport and schools. Vacancy rate there is currently 2.33%.

 

There has been a wave of CG previously in these areas when metro is not up and running, and with much land still available out towards Northwest I suspect you may struggle to see much CG.

Oversupply of houses and vacancy as wombat pointed out will be the killer. Simply jump on realestate.com.au and check available for rent and you'll get an idea.

For that kind of budget I would probably go closer to CBD with suburbs that are land locked, and get an older type of unit (if can't afford townhouses) in an established suburb with close proximity to public transport to CBD.

Cheers,
David

 

Did you look at Quakers hill? Maybe you can still get a good one within your budget.

Properties in Quakers hill are selling like hot cakes at the moment due to the value on offer. many are selling in the first open home or off market

- 30 Alamar Crescent, Quakers Hill, NSW 2763
- 49 Tichborne Drive, Quakers Hill, NSW 2763
- 8 Jasmine Avenue, Quakers Hill, NSW 2763
- 45 Woldhuis Street, Quakers Hill, NSW 2763
- 39 Woldhuis Street, Quakers Hill, NSW 2763