NSW Warwick Farm or Liverpool

Have not been watching Sydney much, but now, for some reason started looking at small older units, was originally going to go Bankstown, but.....

I know there are complexes going up everywhere, but new 2 bedders I assume will be 100-150 at least over older stock, so they should not be highly effected if large over supply and problems for those come financing at finish time, thoughts ?

 

Hi dabbler, the market for the 1970's built units in the area is still strong imo. I personally think its too late to be getting in to this market.

 

replying to the title
whats the price difference between the suburbs?

Warwick farm generally had a bad stigma in the past but as liverpool improves so will warwick farm so if there is much of a price gap between the suburbs at the moment i would see that to come closer

Note: i do not follow unit prices - but i have been following house/land prices and can see there is a big difference at the moment (comparing similar zoned and sized land between both suburbs)

 

They seem to be pretty similar.

Are the train stations similar, it looks like Liverpool may be a bit better as more options direct from there.....but I have not ever caught a train from around that area.

 

Well, all of Sydney is too hot, but they are lower than I would have expected, so maybe with a correction, not as much to drop off.

 

Liverpool aint improving dude... ask anyone who has lived out there for 20+ years.

 

lots of places that are hot now were always poo pooed a few decades ago, or even a decade.

I can tell you, Liverpool is no Bankstown.

I was out there weekly 25 or so years ago, have been around there a bit last few years. Over quite a few years, know many people who have moved from closer to CBD to surrounding Liverpool areas, none have left ?

What do you think of those areas vs Bankstown area ?

 

What do you base your opinion on?

 

We've been buying units for clients in both Liverpool & Warwick Farm in the last few months - just chasing the last of the 2brm unit stock that can be purchased for just under or over $350K. I think the days of <$350K purchases in SYD are almost over.

 

Living here for over 30 years.

 

Hi Alan, what are you buying in the 350 range ? 2 1 1 lockup or car space ?

 

2,1,1 with LUG or space, yes.

 

@Propertunity
Do u rekon prices of 1970’s/80's warwick farm/liverpool 2br units will ever fall below 350k, or this is the new price point. I know a few years ago thses units were selling for mid $200,000's!!

 

In a downturn, which we are clearly not in at present, the lower priced properties usually only fall 5% or so. The higher priced properties can fall 20% if it gets really bad. That's why we always but at or below the median price for investment, to mitigate that risk.

BTW, I am not anticipating a fall anytime soon.

I do think $350K is the new baseline price-point in these areas. The rents are approx 5% too - so no reason for any drops on my radar.

 

Quit living in the past
Everything in real estate was always cheaper "a few years ago".

 

In the early 2000's boom those units were going for mid 200's five years later you could pick them up under 200k.

 

When downturn come, it's not only Sydney that will get hit. Every state in Australia will get hit.

 

Depends on the downturn. I was just giving an example of how those units in the past have fallen by a lot more than 5%. That was also at a time when there was no where near the amount of new units there is in now in the surrounding streets.

 

Here's the numbers for Liverpool units:


They've only had 3 negative growth years out of the last 19. Nothing to complain about.

It's true that you could buy a median priced unit in 2002 for $210K but the median did not drop to under $200K anytime since. (obviously you could buy units under $200K as the median is just the mid-point).

 

Thanks for posting the historical numbers Prop.


True, not bad in the long run but do you think it's the best bet for 350k over the next 5 years? We might have a solid year ahead but after that likely red red red. As I said also there is a LOT of supply coming on board over the next 24 months.