Why Gentrification Matters....

Been looking at this closely in US as we are buying in inner city area which has been changing for the last 3 years, it has most certainly impacted on prices for the better and changed from undesirable to desirable..

What about Australia?
May be interested in this link (Emma Sorenson)
Why Gentrification Matters for Your next Property Purchase

Extract from this

What it means for your next property purchase
Investors and homebuyers alike are generally interested in two things: affordability, and potential for capital growth over time.

Gentrification can deliver both these things in spades. So this means that areas with potential for gentrification are always in demand.

But the challenge lies in predicting the next hot spot, and you can’t re-gentrify an already gentrified area. So the areas ripe for investment are constantly changing and people are constantly on the look out for the next area to take advantage of.

For example, a few decades ago in Sydney, Paddington experienced gentrification, while now Redfern and the older industrial areas around it are undergoing rapid change. A case in point demonstrating its social impact is Sydney’s Millers Point and the Rocks area, which is currently under intense media scrutiny as protestors argue a sell off of government owned housing is further opening the door to gentrification and pushing long term residents out, with wealthy buyers moving in.

 

Awesome post

 

Nice.
I think some ugly duckling areas can certainly change for the better.
If developers started jumping in could this area be one??? Broady

What about Footscray, not my patch of the woods? seeing you are on the ground do you think this is an area that has benefited from gentrification, am told it is changing dramatically and becoming a desirable place to live hence prices will continue to rise.

Considering proximity to city and infrastructure it surely would tick many boxes.

MTR

 

Footscray is already expensive so the entry level to get in is a bit high.
Broady - there are developers I see building works etc but there needs to be something to boost it (like say a new highway suddenly got put in, or new shopping centre or new demographics - currently there are a lot of migrants who live primarily on social welfare).

I know of a suburb in outer east that is going through some urban renewal atm within the 500Kish range.

 

I think there are a few areas in outer East going through gentrification.

 

Where do people go when gentrification happens? Country?

 

Perhaps Some go to nursing homes, some downsize, seachange etc.

 

I'm thinking more of the low income earners that aren't old enough to downsize or enter nursing home. Wiki -

Gentrification is a process of renovation and revival of deteriorated urban neighborhoods by means of influx of more affluent residents, which results in increased property values and the displacing of lower-income families and small businesses.

 

yes I know, but if you have a look at many older/established areas I expect there will be many older residents also living in areas that will eventually move into nursing homes etc. makes sense.

 

yes. i suppose the elderly are on low or no income.

 

We live near Redfern. On the weekend, we were on feet walking the streets that once claimed no go zone. We walked Eveligh st and we also had brunch at Henry Lee which next street, closer to Gockies airbnb... it's a 360 change coming 10 years.
In fact Redfern gentrified better than millers point. Wife friend purchased one of this public housing terrace for $5m at millers point. Quote for the Reno was 500k... will be rented room by room basis..on 3% gross yield. Not sure what they are thinking on that yield...But that area will be in line to gentrification once all the public house are sold and Reno.

 

Ok.. I have to check out that little area with the Henry Lee cafe!

 

Mostly they used to move to the next suburb out. If people got priced out of Heidelberg Heights, they used to go to Heidelberg West. But in a boom they might have to go further out. The last good tenants I lost from Heidelberg Heights relocated to Thomastown. In Perth, the last good tenants I lost from City of Belmont LGA relocated to Ellenbrook. If you don't know Perth, google Ellenbrook. That really is far out!

 

I'm glad to have bought that unit. Technically its in Darlington, but close to Chippendale and Redfern. It wasn't an overly appealing area when I bought it, there was the tent embassy. But apart from having a cool small cafe and quiet Pub across the street now there's also a new Organic tea shop, lots of small cafes coming up, there's little markets such as the one outside the Redfern Community centre and recently I found this in my mailbox. It's a happening area, and it's all happened in a short period of time.
Sounds interesting.

 

omg, I had no idea $5m, I need to get out more

 

nice

 

The Miller Point location wise is a hidden gem. You take a few metre walk on to Barangaroo park where you get a great view, and is also not (yet) tourist infested site...

As for the property purchase, wow... I had to cover my nose as I enter...rotten floors, mould etc. not your usual house you pay $5m and heritage listing as well.

 

Not to go off thread too much but this place in Alexandria Sydney is amazing. bustling on weekends with rustic tea shops, many natural food stalls, little boutique stalls, and a lot more. Its just fantastic. Also The grounds market is just 20 meters from it, another cool place to check out. Its where I bought my cacti from.

the grounds of alexandria weekend market.

 

For that sort of money I think I'd rather go for that (Millers Point terrace) instead of a grand house overlooking Centennial Park, simply for location. I can understand the 500k for Reno. .. still, get more quotes

 

Cool stuff. Another item to add to the Airbnb listing....