NSW Western Sydney 700k Limit - Blacktown, St Marys etc

Hi guys,

Looking to get some advice as to which suburb you'd recommend for a first time investor. But first, some info:

1. First home buyer taking advantage of FHBAS and FHLDS (hence max price 700k)
2. I live in Sydney and will live in it for 6 months before renting out
3. Looking for capital growth over cashflow as im 25 years old, and salary is 93k
4. Looking for a house where I can add a granny flat (for cashflow) and potentially subdivide in future
5. Most likely 3BDR house
6. Leaning towards investing in the Western given all the upcoming infrastructure

Based on the above, I've started looking into:
- Blacktown
- St Marys
- North St Marys
- Seven hills (although this is somewhat out of budget)

Which suburbs would you recommend focusing on for growth? Are there any areas I should look into that I haven't already?

Thanks so much for reading and sharing your views! Appreciate all the knowledge on this forum

 

My pick is St Clair/Erskine Park. I'm a little biased because I live there, but my reasons are:

Much nicer area than the suburbs you've listed.
Lots of open spaces.
Just down the road from the new airport.
5 mins to St Mary's.
Right on the m4 for easy access.

Most homes will be over your price base, however there are a few smaller 3 bedders still available under $700k.

 

Thanks, I will take a look!

 

I have slightly different criteria to yours OP, but we have a similar budget and are looking in similar areas, so I'll offer my two cents as one stranger on the internet to another:

I had attended a few inspections over this weekend just past, and I'll reserve judgement until I can confirm a trend from further weekends' open inspections; but I'm starting to get the feel that St Marys being a transport hub for the second airport line that's well speculated has driven the demand up beyond its hype. I counted 20-30+ families in attendance at each open home, far more than at any other time that I've been on the market as a buyer. The demand is definitely strong.

North St Mary's appeals to me. At the risk of offending its current residents, St Marys itself is a bit of a hole; but from an IP point of view many properties within say 2-3km of the shops/station have already been developed, and I foresee slim chances of finding a gem in the rough currently.

North St Marys, I see quite a number of mid century cottages on comparatively big blocks of land. 19 and 36 Jackaranda Rd for instance. 1 is "under offer", the other is currently on the market. I could see it going for high 600ks, and to be honest the value really isn't there if one were to keep it as is, as rent for 3 bedders in the area are $300-350pw range. But, subject to council approval (IIRC these two examples are in R3 low density housing) 550sqm min for granny flat; 650sqm min for proper subdivision - the land size for both these examples fit the criteria. So assuming $680k purchase price, +$120k granny flat, +$50k asbestos removal and related issues <- this is the 'catch'. You're looking at an outlay of say $850k in total.
Potential income in this case: $340/wk rent of main house; $260/wk 2 bed granny flat, roughly $30k annually. Over the 850k total cost (assuming the asbestos issue doesn't drag on and cost more than estimated), it's facing a potential 3.5% gross yield. It beats money sitting in the bank at 0.1% interest.

 

Hi,
What do you think of other suburb surrounding st marys like oxley park, colyton, hassal grove (being closer to marsden park shops) etc?
I felt the area in st marys are still quite few years away before the gentrification actually happening however the price has increases ahead which makes the yields lower for investor perspective.
Thanks

 

You didnt visit these areas 10+ years ago. BIG BIG BIG transformation since then and it will continue to do so. There is currently a multi-billion dollar refresh happening by the gov for all these areas.

Colyton is actually more preferred by families etc....I've got places there and they get rented within 1-2 weeks each time. Close to $400 per week now too in rent which is not bad since I bought that place for $300k.

Its developed a crapload since I bought there, more and more families moving into the area and there are some very very nice people there actually. The next door neighbor of my investment property have been living there for 40+ years (nicest old couple I've ever met). I think they bought their house for like $20k there. LOL

Worth at least $650k now. I think closer to $750k as their land is huge like 700sqm.

In reality all those areas around there will increase. St Marys, Colyton, Tregear, Willmot, St Claire, Oxley Park, Hebersham all of them will benefit from the continued gentrification of the area and St Marys becomming a major business/transport hub.

I would almost guarantee you make money in the next 5-10 years if you buy in any of these suburbs.

 

Hassal Grove, Oakhurst - yes. I would give it a big thumbs up for those areas to be considered.

And as Thunderstrike mentioned above, big government spending on building infrastructure to sustain an economy in the area means medium to long term sustained growth. Sydney Zoo at Bungarribee, the Raging Waters water park in Prospect - there are major city/state wide tourist attractions in the area. Sydney is no longer just about the coathanger and dishrack (harbour bridge and opera house) and western suburbs relegated to the "poor people" areas that "proper Sydney" residents avoid because it's icky or because of the misconception that only junkies live there or only migrants do.

 

Exactly. Too many ppl still thinking like its 1999. The old mentality of thinking that CBD is where the affluent is and greater Sydney is were the poopers are is no longer valid. When I first moved to Sydney Castle Hill/Baulkham hills etc....was all farmland. NOT A SINGLE person wanted to live there. Look at it now. Doctos/lawyers/families every dick and harry wants to live here.

This is the same with Blacktown. It was considered the worst of the worst. Look at it now. Thriving and great shops/people everywhere. The same thing with St Marys - yes in 1990 it was a craphole compared to what it is now? Its night and day difference.

I'll say it once and I'll say it again Western Sydney is THE BEST investment area right now for potential capital growth. There is so much happen out here ignoring it just means you have not done your research or due diligence.

 

Hi,
Since most ppl seems to be leaning towards st mary/ mt druitt what’s not to like about blacktown? Is it because it’s mature already? I notice the rental market in blacktown hasnt grown for the last few years..

 

Why this fibro Blacktown shack sold for $1.301m

The market is moving fast.

 

Because Blacktown is already too expensive. LOL

Median for 3 bedder is already $690k and 4 bedders $775k.

St Marys median is still significantly lower. It wont be for much longer though. AND there is significantly more money pouring into St Marys I would say so opportunity cost for investors and even FHBs of good growth is probably better.

 

Haha, this!

 

I hold in Blacktown. I honestly don't think the rental yield are all that crash hot there currently. I got in well before current days prices, and rent has been pretty stagnant for the past ~5 years or so. I can't imagine today people getting in at current prices and with sub 3% yields riding on the same CG bus as I am...

Every standalone house in Blacktown will already have a granny flat in the backyard if the yard is sized appropriately to accomodate it. There's no more value to be extracted IMHO. Unless it's situated close enough to Westpoint shopping centre or the numbered avenue streets in proximity to the train line, in which case you could sell off to a developer to built yet another block of units - it's as if there isn't a shortage of them. I drove by near the CBD recently (admittedly first time in about a year) and the old Thrifty Car rental place has become an apartment block. Soon enough the funeral home would be sold to developer to build another apartment, next to the Maccas car park at 3rd Ave that has a frigging huge highrise apartment tower on it!

 

I am also stretching my head as to why it’s 1.3m given it’s not R4 zone, from the news it’s said the buyer may be hoping but there is no guarantee.

 

If it was R4 already this would have sold for $3M+. He is hoping it will get re-zoned and he will be an instant millionaire.

 

indeed it’s a gamble n his waiting cost is huge as I think he can only get around $500rental, given the position. Not to mention the land tax, interests

 

is it true that some council would negotiate with land owner before rezoning to take some of the financial benefit?

the house is close to train and hospital. but 1.3M for effectively a block of land is hard to justify. i would not take chances and wait for rezoning. A few years ago, there was a proposal to rezone where i live. They would only rezone the light industrial area and would leapfrog the few streets with established houses. Everyone in the neighborhood was against the rezoning proposal as they see no benefits, only future road congestion and over crowing. The rezoning proposal was dropped last year.

 

Anyone going to open homes tomorrow around St Marys/Colyton/Tregear/Willmot? Please report back if you do go.

Please take photos of the crowds if you can pretty pretty please!!!

 

Why?

 

Why not? Like I said I'm a visual person. I like to "See" how hot the market is. I would go myself around tomorrow but I got an appointment around 11am. Otherwise I would be out and about myself to see with my own eyes.