NSW the shady burbs? or goldmine?

Hi all

Looking around at Bankstown, Punchbowl, Lakemba, belmore area for investment ips.
But many of my friends telling me to avoid them. Does any investors out here have good/bad stories about investments in these locations.

I am looking at them primarily because yield is still okay with reasonable proximity to the CBD unlike liverpools and blacktowns which are further away

Any feedback is appreciated.

 

Why are your friends asking you to avoid?

There is stigma attached to the areas, but these are good value for money given the proximity to the city - as you call out.

Having said this, if your friends are asking you to avoid investing in these areas due to where Sydney is in the property cycle, then that is understandable.

 

Your from Maroubra - haven't you heard of these areas before or been there its not that far from you? Depends where you grew up if you have been sheltered your whole life in private schooling and north shore poshy lifestyle then you would consider them bad.

If you are street smart and along with being book smart well you would say these suburbs are very culturally diverse and beautiful. You can try the tastes of the world in these areas got some of the best restaurants you can dine in. All authentic.

In terms of investing any area can be good or bad. Whats the basis of your friends telling you not to invest there? The bikies? The Lebos or the asian gangs? LMFAO

 

A lot of places in the Bankstown LGA is full of lowlife types, lot of drugs, guns etc, but you can find good IPs, just pick nicer spots, talk to the local cops, or see if you can find a crime map for hotspots (may be just a big blob)

 

Last time I looked Maroubra wasn't north shore. In fact, last time I was there looking at houses it wasn't very different from Lakemba, except that folks tended to go for the Bunnies rather than the Doggies.

 

Yeah, go hang around the many housing areas there and there may be some similar issues, but at least they are not taking pot shots at each other day and night or executing others.....

 

I didnt say it was. LOL

Used to hang around Marouba a bit when I was younger. Bra boys!!! LOL

 

haha i know where these places are lol! I have researched these suburbs quite a bit now and i see very good growth historically even during down turns of the GFC. So my thinking is because these areas are so stigmatised. It will never boom properly but will always slow growth without decline?

 

in which case it will be perfect investment in sydney market at the moment?

 

Metro coming around 2024, is it still not a good place to invest?

 

My personal view is I’m optimistic on these suburbs relative to the rest of Sydney long term.

Pricing is attractive compared to other areas similar in distance or commuting time to CBD.

And potential upside due to;
- infrastructure mentioned earlier in the thread
- longer term some of the stigma referred to earlier will become historical.

(I don’t own in any of these suburbs but they are on my “list” for the inevitable day in the future when it makes sense to buy for investment in Sydney again).

 

I am a very big advocate for these areas. Some suburbs are more compelling than others, and Belmore would be my pick of the litter.

FHBSydney notes above that the Sydney Metro is coming, and these areas will undergo major rejuvenation by 2024. The Metro is my motivation for being active in the area.

Take Wiley Park for example: it will have an overhaul of its train station, and there will be new commercial and residential development around the station. By 2024 train frequency will go from one train every 15 minutes to one train every 4 minutes.

Yes, the socio economic factors can be a concern and gentrification is by no means assured. But it is really close to the city, and from an investment perspective has low vacancy etc.

 

John, tell me why Belmore is your pick? I've been watching Lakemba for a few years, yet to take the leap

 

It's on the Sydney metro.
Better demographics, more cosmopolitan and gentrification more likely. People are cheekily starting to call Belmore the "Inner west". That won't happen to Lakemba.
It is a major stop on Sydney metro - express trains will stop there.
More shops, etc.
More likely to get two income families in Belmore.

Lakemba is good also, and you can get yield there.

I have also bought in Wiley Park banking on an imminent re-zoning. There's some insider knowledge for ya.

 

@Simon Hampel
I wish there was a way to bookmark posts for future reference.
also be able to link a post to custom defined keywords for personal reference later.
or is there?

 

Thanks for the insight.....now I ask when is the time to buy there ( get out the crystal ball )

 

Ah timing. It's hard to know of course but buy when you can safely afford to.

If I had any intention of buying a portfolio of more than one property, I wouldn't be interested in picking the perfect bottom, and would be buying now. Really good deals at the moment. If you get active, you might be able to pick up several properties in the area rather than waiting for the perfect time to buy one. Fortunes are made in times like these.

I take the John Lindeman view that 2019 represents the bottoming process,rather than another leg down, and prices will pick up in 2020+.

 

Last time I was considering a buy in Lakemba the agent said the owner will throw in an AK47.

The best the agent at Mt Druitt could do was a set of 600 watt lights lol.

Each area is different.

 

One thing to keep in mind is that Labor are pledging to cancel the Metro to Bankstown (which is an incredibly poorly thought out policy) and they are a good chance to get in. If this happens those areas will have much less chance of gentrification as the Metro is the catalyst and the density is the reason the NIMBY are fighting it. Along with misguided ideals.