NSW Western Sydney Medium-Long Term Outlook and Effect of Badgerys Creek Ariport?

Still shuffling numbers and scenarios around, thinking of a sell down and simpler life.

Was hoping to get some insight form folks on here that are familiar with Western Sydney?

We have an IP in Werrington County and another in Claremont Meadows.

Both bought in 2013 and did well, plateauing somewhat the last 18 months – 2 years.

Both got great tenants Werrington county has had the same tenants the whole time and they previously came from a rental where they were there for 9 years and only moved as it was sold out from under them.

Both are on decent sized blocks’ and would take Granny Flats, (which was part of the original purchase criteria).

I’m thinking of selling one, or both. I’m of an age where I could perceivable hold on to them for another cycle, they don’t cost my anything to hold.

For my plan of kicking back and aiming for a simpler, less stressful life though, then IP’s have to go.

I don’t know the areas well, (being in VIC and bought via a BA, I’ve never seen them in the flesh), so thought I would throw this out there for some feedback?

I know, no crystal balls…

From what I can see, I think these two have had their run for now. They’ll likely stay flat or fall back a bit, then maybe run again in the next boom – 5, 10, 12, 15 years away?

Or, are they close enough to the proposed new airport for that to have a little bump effect on them in the next few years?

I’m faced with the dilemma of holding on for another cycle in the hope of riding another wave, or do some profit taking now in the hope of trying to achieve a simpler life.

The first step is to start researching again, to see what their potential maybe.

Given the option of say just selling one, anyone have thoughts on which of the the two suburbs to hold on to? Is one area “better” than the other? The houses themselves are both very similar, purchased for around the same amount and currently valued with a 2k of each other.

Thanks for any input.

 

Hi @Propagate

Whey you say simpler life what are you looking to achieve?

Would you invest in other asset classes once you take the profits? What if you decide to purchase another investment property, would you have still have the borrowing capacity to borrow an equivalent amount for that property?

If not, personally, if these don't cost anything to hold, I would personally be inclined to keep.

I believe this is close to @skater 's neighbourhood, and may have a view on this.

 

That's just it, I'm not really sure. We're feeling a little lost just now, my partner is completely fed up with her job and has been struggling for 2 years to find another.

I'm a bit over the stress of what I do and added into that the IP debts and thought of vacancies etc compounds it.

The goal if you like, would be to be able to wind right back. If we liquidate everything properly we may be able to relocate to a quiet in the VIC Alpine region and purchase a PPOR outright, then I only need to do enough work to cover bills and my partner can leave the workforce altogether and do some volunteering. We have an OK Super pot that's built up so that would kick in in later years.

My current, crude figures, show that if we sold the IP in the UK and one of the Sydney ones we could potentially relocate to the area we'd like to move to now in a small house. If we carried on as we are for another 2 years to save some more cash we could so that but have a nicer house to boot.

If we decide to take the 2 year option, then my concern is are we holding the Sydney property(s) for nothing. I can't see them doing anything within the next 2 years so we're carrying risk of vacancies & maintenance issues for not much more potential gain.

If we sold both Sydney properties and the UK house we could move to our preferred area and have a lovely house, paid off. We'd still have the Super pot and 2x small Brisbane properties ticking away that would then be cost neutral as we could also pay a little off them from the Sydney proceeds too.

The area we'd like to move to was always the end goal I guess (with a paid off PPOR and no need to work), it's just lately it feels llke we're treading water and I'm not sure there's enough gain left in some of our properties to make the wait of another 10 years be worthwhile not taking action on dreams now?

When I started looking at the figures, it's possible we could pull this off whilst we're young enough to enjoy it there, if we're savvy about how we do it.

By the same token, we watched my partners parent do this 20 years ago in the UK and now they're flat broke and pushing 80. Her Dad always says in hindsight was they did was Financial Suicide.

Cheers.

 

Both areas are falling back now there is a bit of stock on the market .However if you purchased in 2013 you will have already picked up a fair bit of equity. Claremont Meadows would be the one to keep if I was you

 

Thanks @babyboomer1

 

Yes, this is right near to where we are. We do know the areas reasonably well.

I think first of all, you should define what it is that you ultimately want to achieve.

If you bought them both in 2013, then you have locked in some great gains, so great work there. I'm not in the 'never sell' camp, especially now that it can be hard to obtain finance. We sold several in the area, which has enabled retirement from the workforce for Hubby, but we do still hold a reasonably large portfolio.

If you decide to sell just one of them, I'd sell the Werrington one, if it was me, although there are pro's & con's with each of them. If you do want to sell, then best to hurry up, as prices ARE pulling back, and the longer you leave it, the less you are likely to get for it. I have noticed that prices don't appear to be pulling back as much for the St Clair area (that's where I live & reasonably near to Claremont Meadows) than for areas further away from the newer infrastructure. Claremont Meadows has a new entry/exit from the F4 Motorway due to open soon, and there's lots of money being spent in the area.
Google Maps
As you can see from the attached map, Werrington County is placed around the back of the Great Western Highway. It's nearer to the train station, but if traveling by car, takes longer to get to the Motorway, so, to me, it is less desirable to someone who does a lot of traveling.

If you sell just one, and put a Granny Flat on the other, would that also enable your wife to leave the work force? This would keep one for the next round, but you would need to work out if that is worth it to you & your situation.

With us, it was always the goal to sell some down.