Why Gentrification Matters....

Is it Rabbit Hole? interesting place. One weekend we needed breakkie and coffee...we had to walk out as they don't sell coffee!!!...

 

Yep. That's the one.

The Rabbit Hole Organic Tea Bar, Redfern

 

This is why gentrifying matters .... this property is not in Australia, but on similar vein, this area has thrived and reinvented itself

Sold in 2014 $195,200
Today on the market at $1,299,000

2186 Lenox Rd NE, Atlanta, GA 30324 | MLS #5789440 | Zillow

 

Interesting, even it gets sold for 800k, still alot of profit

 

yes, your right, comparable sales interesting, have to also compare the size of the home. Also estimate by Zillow was around $1.2M I would say this would be closer to the mark

 

Anyone spotted or recently purchased in a suburb/area that is gentrifying???
Good way to make money, and probably not so much work, the trend does all the work

 

I can't think of a single unpolished gem within a 5 km radius of Sydney CBD that hasn't gentrified.

 

...but but.... this would pretty much be the case with all capital cities in Australia, what about the gems, the suburbs where this is happening further out in the burbs.
Perhaps this is where opportunity rears its head, gentrification = $

 

Well you could roll the dice on ex housing commish suburbs 25-50 kms out or ones with a less than ideal demographic balance. But these have less propensity to change (quickly) by virtue of their distance to the city and dearth of hipsters.

Once you get further out, my usual yardstick for picking the next hotspot are the cheaper, quasi dodge ones right next to higher/ly regarded suburbs. Lalor Park and pockets of Seven Hills come to mind - right next to Baulkham Hills, Bella Vista and Norwest. Not that these suburbs are dirt cheap anymore though.

 

There is a place like this but I won't say where because everyone was already over before it started.
Some compounding factors:
◇ next to the ocean
◇ surrounded by much pricier suburbs with a more 'established' demographic
◇ popular with first home buyers, renters and investors
◇ 'affordable'
◇ 'good' schools, including one of the state's best performers
◇ massive infrastructure spending on roads, hospitals, railway, town-centre make-over, etc
◇ Monash Uni, TAFE and other tertiary institutions
◇ relocation of govt depts to this site
◇ major and well-renowned range of health care
◇ progressive, optimistic and politically-supported mayors
◇ previous bad-ass pollie won political support for future growth here

It goes on and on.
Almost unbelievable the amount of drivers this place has. I want to live there too!
From what I can see, gentrification eventually comes to scummy or lost inner-city areas; affordable fringe suburbs, which with our population growth, don't stay fringe for very long; and areas which are avoided because of houso and druggies - pump in the millions, sell off the houso, reduce investor buying, increase incentives for fhb's and you're onto a winner.

 

Now my curiosity is piqued....

 

This is perhaps where the mindset changes investors may want to look at short term quick gains rather than long term buy and hold, or perhaps a mix of both, whatever makes money.

I think I am getting old and realise that there are many strategies that can make money I just have to open my mind to this not always easy.

 

There are way to many clues in the post. It's very easy to ascertain the location.

 

The post was edited to add in information, so now is the first time I am seeing the amended post.

 

Even the ones in Melbourne 30km+ out - are moving - Werribee, frankston north (the pines), Doveton.

but in Melbourne housing commissions or social housing are everywhere - from the likes of south yarra, south Melbourne, brighton, ashwood, (even in front of westfield Doncaster) to the broadmeadows and werribees.

 

I think Lalor Park is singlehandedly the best sub $600/700K value suburb in Sydney - based upon location, lack of apartment buildings (it's virtually all freestanding houses), proximity to Parramatta etc etc. .

Just across the M7 freeway in suburbs like Bella Vista, prices are double/triple/quadruple (depending on the house) on sometimes, half the land size.

I would buy there over the likes of Mt Druitt any day of the week if the price point was within $50K for a similar type of house/land size.

 

This is why being an active in the same area over a few decades gives a jump on outsiders.

And lately I'm seeing a new trend in gentrification has been developing around the SW Sydney burbs that will play out the next 5-15yrs that could make me eat my words about not buying more RE.

 

Same in Perth, government policy to build State housing in desirable suburbs, reduce stigma, it worked in Perth