Join Australia's most dynamic and respected property investment community

What Does a Risky Suburb Look Like?

Discussion in 'Where to Buy' started by Azazel, 4th Nov, 2015.

Tags:
  1. Azazel

    Azazel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    8,113
    Location:
    Brisbane
    National Australia Bank has released a list of suburbs where it identifies higher risk of loan default on dwellings. As a result, the lender has announced limits to the amount of money it will loan to home buyers as a percentage of what the dwelling is worth. This is known as putting a cap on the loan to value ratio (LVR).

    The highest risk suburbs identified, classified by NAB as ‘Group A’, will have a LVR cap of 70%. Of the 91 suburbs identified in this group, 58 suburbs were in Western Australia while 20 were in Queensland. The rest were spread across Tasmania (9), South Australia (3) and the Northern Territory (1).

    What has many people spooked is that a high majority of the 90 suburbs identified in ‘Group B’ are in New South Wales. Unlike the mining towns in Group A, Group B saw more diverse employment areas such as most of the major capital city CBD’s and metropolitan suburbs including Glebe, Chatswood and Darlington.

    Property News – onthehouse.com.au
    http://static.console.com.au.s3.ama...en_Commentary/Risky_Subrubs/Risky_Suburbs.pdf
     
    Tekoz likes this.
  2. Azazel

    Azazel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    8,113
    Location:
    Brisbane
    Sydney CBD 2000 NSW B $2,145,000
    Arncliffe, Turrella, Wolli Creek 2205 NSW B $1,069,000
    East Ryde, Macquarie Park, North Ryde 2113 NSW B $1,484,000
    The Ponds 2769 NSW B $920,500
    Beverly Hills, Narwee 2209 NSW B $1,150,000
    Banksmeadow, Botany 2019 NSW B $1,242,500
    Yagoona 2199 NSW B $815,500
    Waterloo, Zetland 2017 NSW B $1,188,000
    Chatswood, Chatswood West 2067 NSW B $1,968,000
    Padstow, Padstow Heights 2211 NSW B $924,000
    Chippendale, Darlington 2008 NSW B $1,213,500
    Berala, Lidcombe, Rockwood 2141 NSW B $1,064,000
    Baulkham Hills, Bella Vista, Winston Hills 2153 NSW B $1,062,500
    Lugarno, Peakhurst, Peakhurst Heights, Riverwood 2210 NSW B $1,041,500
    Carlingford 2118 NSW B $1,276,500
    Penshurst 2222 NSW B $1,231,500
    Cabramatta,Cabramatta West, Canley Vale/Heights, Lansvale 2166 NSW B $761,500
    Bungarribee, Doonside, Woodcroft 2767 NSW B $651,500
    Newington, Sydney Olympic Park, Wentworth Point 2127 NSW B $1,206,500
    Auburn 2144 NSW B $957,500
    Varroville, Bow Bowing, Minto,Raby, St Andrews 2566 NSW B $546,000
    Homebush, Homebush West 2140 NSW B $1,610,500
    Campsie 2194 NSW B $1,215,500
    Forest Lodge, Glebe 2037 NSW B $1,405,500
    Glenwood, Parklea, Stanhope Gardens 2768 NSW B $882,500
    Camellia, Clyde, Granville, Holroyd, Rosehill, South Granville 2142 NSW B $869,500
    Harris Park, Parramatta 2150 NSW B $1,080,500
    Hurstville, Hurstville Grove 2220 NSW B $1,448,000
    Ashcroft, Busby, Cartwright, Green Valley 2168 NSW B $605,500
    North Rocks, North Parramatta 2151 NSW B $1,148,000
    Toongabbie, Old Toongabbie 2146 NSW B $807,500
    Lakemba, Wiley Park 2195 NSW B $883,000
    Denistone East, Putney, Ryde 2112 NSW B $1,523,500
    Kingsgrove 2208 NSW B $1,210,000
     
    Tekoz likes this.
  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    1,165
    Location:
    Gold Coast
    Putney :) and Berala on the same list

    love it

    Stats

    ta

    rolf
     
  4. sash

    sash Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    3,214
    Location:
    Sydney
    Putney...because it has a lot of new builds going in..high risk of not valuing

    Berala because of potential mortgage stress..prices have climbed from mid 3s in 2007-2008...friend had one which bought in Regents Park for $310k did not take $920 before auction now still not sold.
     
  5. vtt

    vtt Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    254
    Location:
    Inner West, Sydney
    What about those inner city suburbs? Is this because the recent large price increases in these suburbs means that people are borrowing large amounts that they can't service?
     
  6. Chilliblue

    Chilliblue Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,579
    Location:
    Australia
    The majority of those suburbs listed would have significantly high developments going on
     
  7. Ozzie in Texas

    Ozzie in Texas Well-Known Member

    Joined:
    3rd Nov, 2015
    Posts:
    497
    Location:
    San Antonio, TX
    Inner city suburbs has always faired well during booms....but also take a beating during down turns.

    I would also like to nominate Greenacre 2190. My old hood.

    We bought in early 2000 because I knew property prices were abnormally low. Particularly after 9/11, it developed a worse rap than usual.......but not enough to justify its low prices in comparison to its neighbouring suburbs.

    Comparatively to most of Sydney, it's median age is fairly younger than it counterparts in the inner burbs of Sydney.....but that also makes it more vulnerable and prone to hurt in economic downturns.

    We sold our beautiful 4 bedder with in-ground pool just prior to relocating to the US. We sold well - but not nearly as much as today's prices.
     
  8. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    4,920
    Location:
    Sydney
    I've got a townhouse in Greenacre.... the good thing about Greenacre is that Muslims want to live there with the school and community. So they don't want to move, and I see the Muslim community growing and willing to pay more to live or own there. So I think it's pretty safe and a population not looking to move elsewhere - higher demand than supply. There's also quite a few new builds that have gone in not long ago, but its not particularly high density.
     
  9. wombat777

    wombat777 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    1,434
    Location:
    33°41'24.7"S 150°55'34.3"E
    'Green acres is the place to be ...'

     
    Biz likes this.
  10. Tekoz

    Tekoz Well-Known Member

    Joined:
    24th Jun, 2015
    Posts:
    1,244
    Location:
    Sydney
    Ok so in this case of risky suburbs,
    How to know if there are more investor than owner occupier ?

    Does PriceFinder or RPdata can show this information ?
     
  11. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,558
    Location:
    Sydney or NSW or Australia
    @Tekoz Domain or RE.com have some of the demographics stats.
     
    Tekoz likes this.
  12. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

    Joined:
    14th Jun, 2015
    Posts:
    2,104
    Location:
    Sydney & Adelaide
  13. Tekoz

    Tekoz Well-Known Member

    Joined:
    24th Jun, 2015
    Posts:
    1,244
    Location:
    Sydney
    @Scott No Mates the pie chart on the free website above only shows percentage of renter, does that means it is owned by investor ?
     
  14. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,558
    Location:
    Sydney or NSW or Australia
    @Tekoz - they've got to rent from someone
     
    Tekoz likes this.
  15. Eric Wu

    Eric Wu Mortgage Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    346
    Location:
    Australia
    Mt duri will fit in well if anybody buys there now. :D
     
  16. wombat777

    wombat777 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    1,434
    Location:
    33°41'24.7"S 150°55'34.3"E
    My locksmith had some interesting stories to tell. Mainly does work for public and community housing - callouts to change / repair / replace locks in outer Western Sydney. 99% of his work. A reliable income-stream for a locksmith.
     
  17. sash

    sash Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    3,214
    Location:
    Sydney
    Sssshhh....you will awaken the Zombies again....:p:D
     
  18. Eric Wu

    Eric Wu Mortgage Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    346
    Location:
    Australia
    Skater is better than that. :D
     
  19. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    4,920
    Location:
    Sydney
    Went to an open for a unit in West Ryde.... 8 or more parties there for an older (1960's/1970's) 2 bedroom unit.

    FWIW.... It wasnt an attractive unit to me... vermiculite ceilings, older bathroom, so-so layout... asking 635k. Anyway i'll be interested to know if it sells, and for how much...
     
  20. larrylarry

    larrylarry Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,501
    Location:
    Sydney
    Hey just a quick question. Looking at the housing make up of a suburb, what percentage of renters would you be concerned of when looking to invest? 50% of renters? 40%? 30%? I thought it would also be risky if a suburb as too many renters. Enlighten me please.