What a lazy $700,000 can buy in Western Sydney: HTW residential
The sub-$700,000 price point still provides attractive offerings within Western Sydney to its key buyers, according to the latest Herron Todd White (HTW) residential report.
The valuation firm took a look at how a budget of $700,000 could be invested in property markets across the nation.
The report suggests that the key buyers include first home buyers, investors and those looking to upgrade their existing residence, due to its more diverse options and lower price point in comparison to other areas in Sydney.
"In relation to strata options, established areas in Western Sydney can provide two to three- bedroom units and in some cases townhouses," the valuation firm said.
In Parramatta, with its wider supply of units, the $700,000 mark allows for a near new two- bedroom, two-bathroom unit.
An example of this is a circa 2019 unit, 101/23 Hassall Street (pictured below) which sold in February for $690,000, however previously sold off the plan in 2016 for $759,000, the report noted.
"In Blacktown, you would only need $650,000 for a three-bedroom strata townhouse as shown by the sale of 4/16-20 Kent Street in April for $640,000," the valuation firm said.
The report notes opportunities at this price point for dwellings can be found for first home buyers and investors who wish to buy older style homes with a decent sized block of land in order to add value.
18 Killarney Avenue, Blacktown (pictured below), a mostly original, three- bedroom, one-bathroom home with 601 square metres of land sold for $670,000 in April and would provide ample opportunity for value adding.
For a good investment, a house and granny flat in St Marys would provide a higher cash flow in the short term and potential for longer term capital growth, the report noted.
St Marys is set to be connected to the Western Sydney Aerotropolis at Badgerys Creek.
A house and granny flat, 21 & 21A Marsden Road, St Marys, which sold for $699,900 in April, has a potential rental income of $740 per week and yield of 5.5 per cent.
"House and land packages are also an option in newer estates such as Marsden Park, Box Hill and Jordan Springs," the valuation firm said.
At this price point though, buyers will have to compromise on size to put together a package with land of between 250 and 350 square metres.
An example of this is the current listing of Lot 6181 Annan Avenue, Marsden Park, a single level, four- bedroom, two-bathroom Metricon built dwelling with a single garage, improved upon a 312 square metre block available for $699,546.
"Within the new estates you don’t need $700,000 to purchase land; for much less you can pick up a block to build your dream home.
"Prices are dependent on the size, location, frontage and topography of the allotment," the valuation firm said.
A comparison can be found for a few suburbs in the table below.
Source: HTW
"In the rental market, with a current oversupply of available property relative to demand and the effects on the various markets of COVID-19, the rental market has contracted leading to increased vacancy rates and lower asking rents," the valuation firm said.