What $700,000 can buy in South-Western Sydney: HTW residential
For under $700,000, the Liverpool LGA still provides opportunities for investors and home occupiers to get into the market or grow their portfolio, according to a recent 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 HTW report notes within the strata titled market, the Liverpool LGA offers an array of choice, from CBD living to a more traditional residential community setting.
"The Liverpool CBD unit market has struggled over the past 18 months. We consider that the amount of supply entering the market and the lack of business growth within the CBD has contributed to values remaining steady or even decreasing," the valuation firm said.
An example of this is a 2004 built three-bedroom, two- bathroom unit at 10/25-27 Castlereagh Street (pictured above).
The unit sold in May 2015 for $520,000 and recently resold in May 2020 for $510,000.
Whilst the Liverpool CBD unit market has struggled in recent times for investors, price levels in the sub $550,000 range do allow first home owners to enter the market in a central location close to shops, schools and train lines.
Compared to the Parramatta CBD, it offers very affordable living, the report noted.
"However, it’s not all doom and gloom for Liverpool, which is seen as Sydney’s third city. The development of the Western Sydney Airport and the rezoning of 25 hectares of land in the heart of Liverpool will reinvigorate life and promote more commercial space in the area," the valuation firm said.
The ultimate aim is to remove the need for workers to travel to the traditional Parramatta and City hubs. This may be just what Liverpool needs to breathe life back into the Liverpool unit market in years to come.
Within the Liverpool LGA, the Torrens Titled market under the $700,000 mark is constantly decreasing in opportunity, however suburbs such as Busby, Cartwright and Ashcroft which have generally been overlooked do provide great hidden opportunities for owner-occupiers and investors as shown in the examples below, the report noted.
Geographically speaking, these suburbs are within 20 minutes drive of Sydney’s third CBD (Liverpool CBD) and only 30 minutes from the Western Sydney Airport and Aerotropolis precinct.
"The style of housing and land size in this area provide a very affordable investment to either owner occupy, knockdown rebuild, sit and hold, or look to construct a granny flat on the site to obtain a second rental stream," the valuation firm said.
An example is 63 Mawson Drive, Cartwright (pictured above) which sold in May for $565,000.
For the price typically reserved for units, the property affords three bedrooms and one bathroom on 579 square metres of land.
A second dwelling is possible, however subject to council approval.
Another example is 8 Kelvin Place, Busby (pictured above), which sold in February for $625,000.
The property affords a renovated three-bedroom, one- bathroom home on 651 square metres of land.
Detached at the rear is a council approved one- bedroom, one-bathroom, self-contained granny flat.
The achievable rental for the main dwelling is $440 per week and $220 per week for the granny flat, calculating to a strong 5.5 per cent gross return.