Episode transcript
Parag Dixit0:00
Hi Julius, how are you? I'm good. How are you? Very good. How are things? Things are busy.
Julius0:04
We were very busy in SMSF purchases. Bought more than 70 properties. Now very busy in sorting out all the logistics.
Parag Dixit0:12
That's right. Yeah, there's there's been a busy season with SMSF going through the churn, which it's going through. A lot of people have been into it, and that's where we've seen how people have been busy. But let's let's let's be back to what we've been doing. We've been talking about Sydney, and we've spoken at length about what happens and what's moving in Sydney's, and what are the reasons why people are investing in Sydney or wanting to buy in Sydney, despite what it is there, despite a bit of a softness in the market right now. But we are. We want to crack open the Sydney market, and we want to explain to all of you that we how why we should skip the good multi-million dollar suburb, and then we move to the ones where there's actual value. We move to the ones where you get cash flow. We move to the ones where can we can have an equity opportunity for us, so that when we are looking at wealth building, we reach there. We we've actually analyzed more than about say 300 suburbs in Sydney, and when we look beyond what's there on the surface, when you start looking at forget about the the price ranges. When you start forget about what's happening just on the surface, you see that Sydney is actually a 222 speed market. You know, two top tire postcodes obviously have their affordability ceilings, and but whereas the other ones, they are like good high performers, and beneath the surface we can find those ones. That's why we went into a deep dive. We found out five targeted Sydney suburbs that are beating hundreds of others. Yeah, and I'm I'm telling you, we are going to also reveal the surprise bonus location at the end. And I love this location. It's such a irreplaceable place, low density lifestyle place where you can buy. You are mostly people say permanently you have a land scarcity problem, and it's going to be a very well short rise, and you're well protected against any kind of a downturn because of the way that that that location is, the suburb is. We will look at that, and I'm very sure you will like it that like that one as well, like I like it. But anyways, whether you come here and listening to us about when you're looking at a strong cash flow, or whether you're looking at strong capital growth, or looking at a good land to asset ratio, all of this is what we are hoping that you will like in the suburbs which we present today. Mind you, we are looking at investment as an angle to see why these suburbs are worth investing into, and when we are looking at that angle, we want to present to all of you how we went through this. But let's get into it straight away. Let's talk about each suburbs one by
Julius2:51
one. Yeah.
Parag Dixit2:51
Okay. Julie's first suburb, which we will talk about, is South Windsor. Now, I'll just give you a brief about South Windsor, and this is such a nice suburb. Okay. It it's a it's an affordable entry price point suburb for a lot of people who who are wanting in the Hawkesbury region, and it's it's a commercial precising there. It's an agricultural precinct there. People want to live there because see when when across Sydney and not even across Sydney, across Australia, when you see that you have high borrowing costs. Are there? You want the first home buyers and the the trades guys. They will always want to have a large land where they can live, where they can be with kids, where they can be play around, where they can have their own stuff. But it's not available in your Marsden Park and Box Hill, which is earlier than South Windsor, it's just not available. That valuation gap is now coming up in South Windsor area, which is attracting people. That's giving us a good land to asset value ratio there. There's a beautiful play which is coming out in that area, and because of that, people are getting attracted to that area, right, Julius?
Julius4:04
Yeah, that's right. So, big land sizes and lot of trades are attracted because they need big workshops. Yeah, yeah. Big good, good lot sizes. If you look at the market sizing, then median house pricing is currently around in between 900 to 950, yeah. So eight mid nines. When you look at the units, still below $600,000. When you look at the rental aspect, houses will rent around 580 to 650 per week, depends on the type of house.
Parag Dixit4:34
Yeah.
Julius4:34
And unit will be very close to 460 to $500 per week. That means in terms of the percentage yield, for the houses the yields are very close to 3.7 to 3.8% Unit will be around 4.3%
Parag Dixit4:46
All right. Okay, that's
Julius4:47
pretty good in Sydney. That's pretty good. Yeah. Yeah, and then vacancies are very tight. It's around 1.1%
Parag Dixit4:53
Oh, that that's good. That's good. That means that you're having a good capital growth and you're having a good demand out. Correct. It's it's it's within Sydney, right?
Julius5:02
Yeah. And then when you look at the days on market, which is liquidity score,
Parag Dixit5:06
yeah,
Julius5:06
it's around 24 days. That means in this market still, it only takes 24 days to sell the properties.
Parag Dixit5:14
It's about three weeks.
Julius5:14
Three weeks, yeah. So we can see a consistent capital growth coming up in that area because of the affordability, because of the current demand and supply gap, and then there are a lot of upgraders were going towards that section. So what we can see is in towards the growth. Yeah, so population growth is pretty high there because there are a lot of people who are priced out in either in Hills Dixit or the Black Town.
Parag Dixit5:40
Yeah,
Julius5:41
they try to move towards the Windsor region.
Parag Dixit5:44
Okay, because
Julius5:45
of the good block size, good lifestyle blocks, as well as a lot of trade persons who operate from there.
Parag Dixit5:50
Yeah,
Julius5:50
they can have their own workshop on there. When you look at the infrastructure side as well, it has got access to Windsor railway station.
Parag Dixit5:58
All right, that allows you to transfer transport pretty easy, right? Yeah,
Julius6:02
and then they are upgrading the Hawkesbury River crossing as well, because during if there is a flood, then probably that that was the biggest blockage over there.
Parag Dixit6:12
Yeah,
Julius6:12
so they are upgrading that as well.
Parag Dixit6:14
Yeah, they're correct. No, that's right. So that's right. And these all of these bits always help owner occupier or first home buyer, or someone who's looking at a large family. Okay, they will always say, okay, I want to live in that place where I can have a three, four bedroom kind of a brick house, and I can have a large land. So if the kids can want to play, they can play around. If I've got pets, they can run around. I've got an area to have maybe a two or three cars or my trade cars parked in. If I want to have a small workshop, I can have that there. So it it meets most of my demands. It allows me space. It's I don't have to be in a 250 300 square meter lot, and I'm going to be constrained for space. And then I I don't want to live like that. So I want to live. I can be a bit further away, but I want to do that. And as even as an investor, I am happy to invest there because I will get tenants who are working in the the defense base nearby. They can who are working in the government, who are working in trades, with with the vacancy which you're selling us. So if it's going to be so low, I'm pretty sure within two three weeks my property is going to be leased out. So I really don't mind. So it's giving me a good mix of a lifestyle there, and it's called giving me a good mix of an employment there. So that lets me lets tells me that okay, I can go and buy there. So it appeals to a first home buyer as well because first home buyers say okay I I live better which I may not live if I'm buying something around a million dollars I can I'm be okay if I go to the city? Then I won't even get a townhouse in a million dollars. If I start getting into closer to the city, CBD. So I'm happy as a first home buyer. I'm happy as a tradie who can keep vehicles and workshops and all that. I'm pretty happy. So and so it makes sense for me as an investor if I am looking to invest there, if I want to have a larger land, yeah, nice place to invest. If I am look, if I am a young family and I am wanting to have a larger land size so that I can go around it, that's the place where I would love to be there, and that's the place where I would say, okay, it makes sense for me to to go to that area, and it makes sense for me to be in that area and and get my base in there. Exactly.
Julius8:22
Exactly. So what we could see is most first home buyers who required looking for lifestyle upgrades. Like you want to have good lifestyle property with the good land sizes, and you're not too far from the city as well. Like it's you will take 20 more minutes to reach there, but you're still in greater part of the greater Sydney. When you look at the capital growth potential for that, the entire region is extremely high because of the fact that this is a landscape city. You have a big blocks, but there is not massive subdivision. That is number one. And then you are still in in a market where your rental yields are very close to 4% In Sydney, when you look at 4% rental yield of 4% with $1.5 million property prices versus when you are below $1 million, and then if your rental yields are very close to 4% then it's not bad. It's not affordable. You're not bad.
Parag Dixit9:10
Yeah, yeah, yeah.
Julius9:11
So cash flow is very steady. Demand and supply is lot of gap. Even though there are a lot of places or there are a lot of lots of still part of the rural density. That's why you you'll not see a massive subdivision opportunities. Also, that means you can still retain that lifestyle blocks, and affordable markets are currently highly affordable.
Parag Dixit9:32
That that's good. No, that's a very good insight when we look at the the South Windsor market. It it's a very wide appeal. Yeah, it's a very good appeal to a lot of people. It's it's it's not only owner occupier or it's not only investor focus. It's it's it's it's appealing to everyone in the spectrum, and that's why it's a it's a good place to buy in. Now, if I want to buy in there, can I ask you something, Julius? And with with all. What you've read through and which all what you've analyzed about this, what is one a unique bit which you can do? If I want to buy there, where what should I buy which will really really give me a good chance of making great wealth out there?
Julius10:12
So there is flood, so you have to select pockets which are flood free, which is south of Milam Street. If you find something on a larger block which is more than 650 to 750 square meter, good frontage, nice 1970s brick veneer home, then it's a it's a really good opportunity rather than buying something which is on the smaller land, because over there holding the land in future you might have a subdivision opportunity.
Parag Dixit10:39
You might have a subdivision, or make townhouses, or make duplexes, or something out there, and that's a that's a good value, right? We can we can really make good benefit out of such large land, which you can get now for a cheaper price eventually, because we all know we've spoken about in the first part. Sydney's landlocked. When Sydney is landlocked, and there is no space to grow further, we've got blue mountains, and we've got. In fact, this is where the blue mountains is, and then we've got the the sea on one side, and then we've got the national forest on one side. So we don't have too much of area to go, and this is a nice, nice area to just hold a land pretty cheap right now, and then you can subdivide later on.
Julius11:18
Correct. So if you hold bigger lot, which has a good contour, like flat lots with good frontage, noise vents. That's the property to get in.
Parag Dixit11:27
That's the property to get. All right, cool, cool. No, that's very good. It's very good to understand. And if South Windsor is something which can appeal to you, then definitely you can have a look there. But let's move on to our next suburb. Okay, and next suburb, we just go to the other side of Sydney. Let's go to Milpera. Milpera is is a phenomenal suburb. You know, it's a quiet suburb, pretty family family suburb. It's a it's a riverfront pocket. You know, it's good employment hubs all around it. Lots of stuff happening, lots of business happening. There's a good community which has been built up there. People are able to go towards the airport. People are able to go towards the commercial hub, which is which is there. It's a commercial precinct which has come up there. So a lot of employment opportunities coming there. Land value is going up, and the important part is Milperra as a pocket is has a price cap with the other like Panania and Riversby and all of these areas. They are much expensive. As Milperra is not that expensive, and so what that has done is it's allowed people to have a benefit out in that area. And when in it's it's in that southwest corridor, it's so such a nice area to be in that people are loving to buy and people are loving to invest and it's coming. That's why it's come up in some of the good growth pockets to be able to invest into. Right?
Julius12:49
Yeah, that's correct because it's very close to Bankstown, which is close to which is like present where we there is a lot of development happening and it's close to CBD also. When you look at the proximity to city, it's only in between 25 to 27 kilometer. So if you look at the current market, property prices are very close to one and a half mil from last 12 months, and they are stable. They are not dropping too fast. When you look at the units, units are selling at very close to 750 to 800 $1,000.
Parag Dixit13:20
Yeah,
Julius13:20
yields are okay, moderate. Like when you look at houses, the rentals are very close to 750 to $800 week, and unit side it's around 580 to 620 per week. So that means in percentage is around 3.2% for the houses, 3.9% for units.
Parag Dixit13:36
Yeah.
Julius13:36
When you look at the vacancy side, only 1%
Parag Dixit13:40
All right.
Julius13:40
Vacancies are tight. Decent markets liquidation scope very low, 26 days, at one and a half million dollars price range.
Parag Dixit13:48
Yeah,
Julius13:49
you're still able to sell that house for in 26 days in three three to four weeks. Three to four weeks. Three to four bad, and that's that's
Parag Dixit13:55
that's a very standard turnaround time, right? Correct. Yeah,
Julius13:58
and then they have a very strong potential from the owner occupiers because there are a lot of people from the banks down are trying to move there. So there is good owner occupier demand plus there is very tight inventory. Stock on market is lower, inventory is always the lower. So that's why we could see there is a good population movement within that vicinity. Yeah. So when you look at the population type, we can see a lot of young collar, white collar people, or skilled trade professionals are living there. Second thing is there is good infrastructure boom in that area because you are have you have excellent connection to your motorway. Five plus you are very close to the banks or present as well.
Parag Dixit14:41
Yeah, yeah, yeah. That's that's phenomenal, and that's I think that's that's the reason why it's such a magnet for a good first home buyer who wants to live on a peaceful street, who wants to live on a riverfront parks, and who wants to live in a nice area with decent sized blocks. It. As an investor as well, you know I I understand that the transaction turnover is pretty low, so I understand that I would have a good chance of making money out there because people are wanting to buy. There is so much of a corporate tenants which are all around there because there is employment around, so we will always find tenants which are very good. There are obviously industrial workforce tenants also who are around there, which is also fine. And when you say 1.5 million and sub 1% vacancy rate, then you are in for a winner, right? You don't have a problem at all. As a, it it lease out within a couple of weeks. I'm pretty sure we will see an article in the TV somewhere that there was a queue out there for people to to rent out the house, and that's that's where it is. You know, all of that whole area, the Trevesby, Chipping Norton, Bankstown, golf courses, the works is all out there. That's why if I want to upgrade, I'm looking at an option to buy there. If I'm a tradesperson, I'm looking at an option to buy there. If I am a local person, I don't want to be in Bankstown. I don't want to be in that high density area. I want to come in here, and I want to be here, and I want to live here, right? So if if I'm an investor who thinks that I would love to have a large land to asset ratio, I'm here, right? This is the place where I start thinking that it makes sense for me to invest because I will make money there. I will have a good opportunity there. I will always have a good chance of a capital appreciation in that area. Right?
Julius16:33
Of course, yes. So it's a high capital growth driven pocket because it's in a middle CBD where you are around 50, 25 to 27 kilometer two city, and then you have a landscape city. Plus, when you look at that sub 1.5 million dollars property price range, yields are still around 3.2 percent. So, and then vacancies are tight. That means your property will not be vacant for a longer time. When you look at the demand and supply wise, highly imbalanced because there's no land at all. It's a land blocks above. Yeah. And within the the position where it is situated, with that position, with the 25 kilometer of city, it's still very well affordable.
Parag Dixit17:13
Yeah. True. It's it's
Julius17:15
affordability is extremely good because of the fact that okay, it's only 25 kilometer city. Socioeconomy is not bad. You have a land scarcity. You can still buy a good land size, and it's still 1.5 million dollars.
Parag Dixit17:26
It's still 1.5 million dollars. What what else do you want? And that's such a such a good attraction for anyone who wants to be there. And it's a very it's a good entry affordability kind of a thing in Sydney. 1.5 may look higher, but in Sydney it's a pretty much entry kind of a price range, right? So okay. So if I if I want to buy, nice question to you again about this sub. If I want to buy, what should I look for which gives me even more opportunity to be able to accumulate wealth and to be able to make good out of what I am investing in?
Julius17:55
Okay, the location or the the position where it is situated. Yeah, we're gonna witness a massive subdivision in that area. That means if you buy something now, which is older house, bigger lot, at least 15 plus meter frontage, then in future you'll have a massive subdivision potential, or you can get a good land size where you can put a granny flat,
Parag Dixit18:18
and
Julius18:18
then you can improve your yield, which is around 25 kilometer city. So that means if I would like to buy something there, I'll buy at least 700 square meter lot with more than 15 square meter frontage, old home,
Parag Dixit18:32
yeah,
Julius18:32
clear lot, flat contour, no easements, no overlay, good to go.
Parag Dixit18:37
All right, no, that's very nice. No easements, no overlays. It's such an easy thing, and you're 25 kilometers away from Sydney. But you're not too far off. Yeah, 25 kilometers in Sydney is nothing. Nothing, and it's it's such a and you're such a nice area, and it's just and it's not. It's a pretty affordable price range in Sydney, and you can get larger blocks which have potential for the future. Very good suburb to really consider if we are looking to stay, if we are looking to invest in both ways, let's come down to our third suburb, okay, and then we come back towards the other side of Sydney, and this is Chunggabi. Tungabi is a pretty popular suburb with with the people who are migrants who've come in there. It's it has the biggest straw is the railway station, which is which is there, and which, and the the good part about this suburb is it's such a hidden gem. It's surrounded by suburbs like Westmead and Wentworthville and Pendle Hill, which are much much more expensive than this suburb. And then now, because it's now getting closer to the Paramatta CBD, which is now parallel CBD, and we've spoken about that. That parallel CBD is now allowing people to come into Tungabi as people who are good working in corporates, people who are professional, people who are healthcare workers. They think that okay, Tungabi is at an attractive price point, very. Price point, and I would love to invest there. Parameter is coming up as a CBD. I am stones throw away from Parameta CBD. I can take a train, and I can be in about half an hour, 40 minutes. I can be in Sydney CBD. Not bad at all when I'm looking at all these things, and that's what's attracting people to Tungabi, and people are saying, okay, let me be there. Let me buy there, right?
Julius20:22
Yeah, it's it's a good pocket on Western Corridor where you are very close to Westfield Health Precinct. That is number one. Then you have a good connection to city because you have a train station. Yeah. When you look at the data side, price guides are in between 1.2 to 1.3 million.
Parag Dixit20:38
Yeah.
Julius20:38
Whereas units are pretty cheaper, so unit and house is a lot of gap now. Units are very close to 550 to 590, and when you look at the rental side, rentals are in between 650 to 720 per week.
Parag Dixit20:52
Yeah,
Julius20:53
and units are renting at around 530 to 580 per week. Depends on type of units because we can see a lot of older blocks in Tungabi as well. In terms of the percentage yield, 3.4% for the houses, and very close to 5% for units. Vacancy rates are very tight, 0.9%
Parag Dixit21:11
Oh, that's that's amazing. Yes, and being one below 1% is like you put it on market and it's gone.
Julius21:17
Of course, yes. And liquidity score, 21 days, three weeks, your property is out.
Parag Dixit21:21
Oh wow! Oh wow! That's that's that's amazing. That's amazing. That's very good. That's very good. So we can see intense demand for houses as well as units. Both. It's just not only about houses. There is good demand for the units as well. Absolutely right. In fact, good. You remind me. I I was speaking to a real estate agent who was in our office a couple of days ago, and they said that whatever stock they had for apartments that went away in this SMSF rush, but again in the normal rush as well, it just went away. People just bought them like that. You know, it's it's it's a good thing to see, and that's that's that's what maybe is the driver of those locations. Yeah, yeah. So population growth is one of
Julius22:00
the driver. Then when you look at the infrastructure side, then they are very close to Tungabi Station. Then you are very close to the Westmin Hospital as well. So there is a lot of employment. There are a lot of people who are renting it towards the Tungabi because you are very close to the Westmead. So you have a good population growth side of story as well as the infrastructure demand is also higher.
Parag Dixit22:20
Absolutely right. No, you're you're right, and I've seen that when I whenever we analyze Chunggabi as a location, it has so many freestanding houses or even villas. It has a lot of villas out there. Coincidentally, it has a I think a good density of villas out there because of these villas or townhouses which are getting a lot of investors into it because they give you close to maybe 4.75% rental yield, and the startup cost is not so high. With with like you said, with a decimal percentage of a vacancy rate, where can I go wrong? You know, the universities nearby, the hospitals are nearby, all those people need places to live, and it's so easy to go there and take it away. You know, it's it's a well, well, well good, concentrated, self-contained kind of hub where people schools are there. People can go out and have food. A lot of overseas migrants have come in there, and it's becoming it's becoming a very good attraction to being so close to the Paramedra CBD that you can you can be nearby and you don't have to travel around too much. That's why I can all whenever I see Tungabhi, I see first home buyers going around it and wanting to buy there. Good professionals want to buy their healthcare professionals have really taken up that area very well. Those nurses and paramedics and even medicals and doctors have taken up that area pretty well, and that's why even investors have started coming into that area because they can buy. Even if they want to buy an apartment, it's going to be a good high yielding one. It's not too much of a strata. You can buy a land with a larger land with a house, even if it's an older house. It's so close to Parameda that is so close to the Parameda Cashment that you're there in 10-15 minutes. So easy to be there, and so easy to live there, and so easy to own a piece of land which is so cheap, right?
Julius24:10
Yeah, that's right. And then when you look at the investment potential for that area, they have a very good capital growth for houses as well as units because you are part of the Paramatta, you are very close to the Paramatta CBD, which is expanding, and you also in investment innovation present. That is number one. Then we look at the yields for the apartments are very close to 5%
Parag Dixit24:33
Yeah, which is pretty good.
Julius24:34
Pretty good, and then apartment and unit has lot of apartment and houses have a lot of gap now. Yeah, apartments are close to 550 to 600,000 houses around 1.3 million.
Parag Dixit24:43
Yeah, yeah.
Julius24:44
So there is lot of gap between the apartment and houses, and then you have lot of apartment available which are older block.
Parag Dixit24:49
Yeah, true.
Julius24:50
Yeah. So there is a heavy competition between lot of renters and property for the properties which are very close to the train station.
Parag Dixit24:58
Yeah, yeah, yeah, yeah, yeah, yeah. Correct. So, so very good. In fact, that's right, and because the train station is such an attraction there, the transport is such an attraction there. The closeness to CBD Parramatta or the city CBD because of the train station such an attraction there. There is a huge competition out there. So when I'm back to our question, the important question. So if I'm wanting to buy today, what should be my go-to? What should I buy?
Julius25:23
If I buy there now, if I'll get a good house which is old, around 700 to 750 square meter land, good frontage, that's an opportunity. Or if we are looking for a good yields, when low-level entry points, then older units which is built in 1970 to 1990, around five to 600 meter to a train station. They are the units where you can see a very good amount of capital growth.
Parag Dixit25:50
All right. Okay. No, Tungabi has been a darling of a lot of people for some time now because of this, and they've been able to do a lot out there. And whether it's apartment, it's one of the rare suburbs of Sydney, where you are having apartments also equally liked as much as the houses there, it's because of this reason that you can still make money there, good cash flow, you can still get a good appreciation out there, and then you feel okay. I've done a made a right choice by doing this, and even if you want to live, even if you want to invest, both ways you're making getting a good outcome out of it. Yeah. Okay. Let's move back. Let's move back to our fourth suburb, and let's move back to the area where we came from. So let's go to Rose Meadow. Now, Rose Meadow is such a nice place. Rose Meadow is offers us a house with a 550, 600 square meter land at a price point where maybe you can't even buy an apartment in the Sydney CBD and you get a house there, and that is what it is. It's it's obviously even souther than more than Campbelltown. It it it has but it has everything. It has medical and retail and all of stuff around it. It's good rental yields out there, good vacancy rates out there. So when people are seeing, okay, if I want to go and be around in the in the CBD in the local LGA of Campbelltown, it's a nice area. It's it's a bit further away. It's about 50ish kilometers from Sydney CBD. But then I don't want to live in in Rosemeadow to go to the CBD. That's not what my objective is. If I'm working around and if I'm working in the precincts around there, that's why I want to be there. And it's a it's a pretty attractive area, very attractive
Julius27:30
area, and it's affordable as well. So if you look at the median prices for the houses, around less than a million dollar.
Parag Dixit27:37
Wow,
Julius27:37
less than to
Parag Dixit27:38
hear that in Sydney is so reassuring, right?
Julius27:40
Yeah, correct. That's less than million. Units are close to 500,000. It's pretty cheap. Pretty cheap. Pretty cheap. And then you have very limited stock for the units as well. When you look at the rentals, 600 to 650 for houses and close to $500 per week for units. So 4% yield for houses, which is below 1% or below 1 million. That means when you look at the buying affordability, is matches because you are in Sydney, you will be spending less than million dollar with 4% yield.
Parag Dixit28:10
Yeah, very good
Julius28:10
entry point from the investments and for the units, the yields are 5%
Parag Dixit28:15
Not bad, not bad at all. I would love to do that. Of
Julius28:18
course, yes. So, and then still your vacancies are below 1% point 9% and days on market 20 days.
Parag Dixit28:25
Less than three weeks
Julius28:26
cap like this.
Parag Dixit28:27
Yeah, less than three weeks. Yeah, what what better do you want?
Julius28:30
Yeah, so because of the affordability, because of because of the strong demand from the investors as well as entry level buyers, we could see there is a good price movement in that market.
Parag Dixit28:43
Yeah, yeah, yeah, yeah. It attracts people there. It attracts people there. So many good points are there which attracts people there. Yeah, and
Julius28:50
then when you look at the population growth, very strong because of first-time buyers, those who can't afford above million dollar, they're trying to get in there. Investors because of the strong rental income is there. Plus demand and supply is lot of gap, so there is a good property price movement. Rental yields are increasing. That is also one of the reason.
Parag Dixit29:09
Yeah.
Julius29:09
When you look at the infrastructure side, you are close proximity to the Campbellton Hospital, which is around $632 million expansion.
Parag Dixit29:17
Wow. That's that's lot. That's lots. Yeah.
Julius29:20
Plus, you have a TAFE over there, and then you are very close to the Camel Town station. That means connectivity-wise, you have you sorted.
Parag Dixit29:27
Yeah. Even though you are further away from CBD, but you still get still a lot of it. See, when we were talking about the whole salient points and characteristics of Sydney, this is the most interesting part about Sydney. Each suburb has its own story. Each suburb has everything in itself. Each so many suburbs and or maybe couple of suburbs put together make a small city in themselves, and you find employment out there, you find lifestyle out there, you find stuff out there, and a neighboring suburb will be quite completely different. And that's what's happening in Rosemeadow. When I am looking. Looking at who would want to actually live there, it's pretty simple. If I am an owner-occupier, you know, so attractive, a three-four-bedroom house with schools around me, with everything around me, what else do I want in sub-billion price? Where do you get in Sydney? You people dream of getting something in sub-million as a house in Sydney. Investors, I would love to be right. I'm getting a strong rental demand, 0.8, 0.9% vacancy rates. I've got tenants queuing up. I've got good cash flow. I'm I'm I'm happy, right? I'm pretty happy, and I'm having a good lifestyle as well, right? It's it's it's cost everything what a what a residential area should need. I've got all the parks and all the lifestyle stuff and all the sporting activities. I'm a first-time buyer. I want to take government grants, some $1 million. I maybe will get a small stamp duty discount, and I can live there. You know, I can. If I'm an upgrader who wants to work around that area, why not? I can upgrade from there. I can be a good investor. I can invest there. Anyone who is looking at a property a sub million dollars, and is and can understand the profile, that's it. That's the area for me to go to, and that's the area for me to invest into. Right?
Julius31:11
Correct. Solid capital growth potential because owner occupiers are interested; they can afford
Parag Dixit31:16
it.
Julius31:16
Good buying affordability. Rentals are pretty strong. Yields are better. Investors are interested. Rentals are increasing. That means solid investor demand. Plus, you have lot of ripple effect from Campbelltown and the neighboring suburbs, because these areas are prices are increasing, and then all the ripple is coming towards that suburb. When you look at the rental side of story, yes, yields around 4.1 percent in some million dollar property price guide. So exceptional cash flow, demand and supply is lot of gap. You don't have lot of land lease over there, and when you look at the affordability, buying and renting, both the affordability are very strong.
Parag Dixit31:55
Yeah, and it's it's such a good mix of good mix of everything. It's a good mix of everything. I want to, if if whatever I am, whatever is my objective, whatever is my vision, it fits into that bucket. It will always give me something which I want to look out for. And when I want to look out for, but if I want more, I know you know you always want the best out of that suburb to get the best out of out of Rosemeadow, what do you think? What should I really target? What should what will give me a good chance of a phenomenal growth? Good. If we'll buy good house, old house with good land potential around six to 700 square meter with massive good frontage, so you'll have a side access because for the houses yields are close to 4.4 to 4.1% Yeah. So if you add additional dwelling on on your property, then you can increase your rental yield to up to 6.5% That means you are sitting in a Sydney capital city, sub 1 million. It's more than 700 square meter lot with 6% yield. Uniform. That's absolutely right. That's that's so much what people are going out of Sydney to look for. That's what they want, and that's what you get here in about a million dollars or something. And you get that here, and it's still a nice block, and still good good areas. You get good capital growth. You will get good cash flow. You you know you got what you wanted for, and that's where that's why you've come here, and that's why all of these four suburbs, which you've spoken about till now, they they they bring and Rose Meadow is, I think, one of the one of the near good ones out of them. All of these give you that opportunity. Sydney is a big market of double dwellings, you know, secondary dwellings. It's a big market. People love to have that. People prefer to have that, and people don't mind to have that. So, if you have a potential with a good six 700 square meter land, and if you can set up a granny out there, or you can set up a duplex out there, and you can lease it out, and you can then you can get an extra income on the site. What more do you want? Six six and a half percent rental yield. Wow, it's so tempting. Yes, that's so tempting for in Sydney. Then that to insid me. That's insane. And good good land lot. You know what more do you want? You go to people go to for dual key houses in different state. People go for dual different stuff in different state and should reach a million dollar price. Correct, and that's what you get here. Of course, yes. And why not? Why not? And okay, I I would now let's move to our last fifth suburb before we go to our bonus, bonus, bonus, beautiful one. But this is no less beautiful. This is no less popular. When we talk about one of the popular suburbs in similar area, that's Minto.
Julius34:29
Yeah,
Parag Dixit34:29
Minto is such a suburb. It has obviously a train station, which is which makes it transport easy. It's got so much of public housing redevelopment which has happened there, it's now become a pretty modern suburb. It's a very modern suburb which has shopping centers and what all do you want and huge private owner-occupied houses. You've got everything there. It's a strong market with, you know, there are still older homes obviously out there, but. Good master plan activity are happening there. Townhouses, you know, good capital yield, good good rental yield. Everything is like picture perfect, which is now coming up in Minto, and that's why you find such. It's come up in such a phenomenal way in the last decade or so, right?
Julius35:17
Yeah, that's right. Because it's a classic example of gentrification. So when you look at the housing prices, it's still in million dollar.
Parag Dixit35:25
Yeah, still still in
Julius35:26
million dollar, and units around 620 to 650 depends on the type of unit you buy. Rental wise 620 to 650 for houses and 500 to 550 for units. So in yields around 3.8% which is very strong in Sydney market, in 1 million range, for houses and unit rents are unit yields are very close to 4.5%
Parag Dixit35:48
Yeah,
Julius35:48
vacancies are very tight, 1% Wow, I love that part. Days on market 22 days, three weeks. Three weeks,
Parag Dixit35:56
you're out. Three weeks, you're out. So good, so good, yeah, so good.
Julius36:00
So it's it's a high capital growth suburb because of the price guide, because of the investor demand, because of the rental yields, and because of the surrounding infrastructure projects.
Parag Dixit36:14
And that always is a big magnet for anyone, whether it's an investor or whether you're an owner occupier. It attracts you, right?
Julius36:21
Of course, yes.
Parag Dixit36:22
You want to be there.
Julius36:23
Great population growth. A lot of young families are moving there because you can see there are a lot of new developments which are happening, new land release, modern houses. So that causes a lot of owner occupier to move there, and then infrastructure wise, you got a new you you got a mentor railway station.
Parag Dixit36:40
Yeah, yeah, true. You
Julius36:41
got you got a you got a big mall.
Parag Dixit36:42
Yeah, yeah. And
Julius36:43
then you are close to the M5 motorway.
Parag Dixit36:45
Yeah, you close to M5. You close to Hume Highway. You close to everything. Yes. You you can travel around anywhere. You can get what you want to do. And why not? And that's why why will it not attract an owner occupier who says, okay, I can be in a modern three four bedroom kind of house out there, or a beautiful villa, or a beautiful townhouse, and I can be close to transport. And it's the whole suburb has got such a phenomenal vibe about it, right? It has a phenomenal training. It has it. It's got what do you what do you say vacancy rates of less than 1% I am an investor. I would love to invest into place like this, where any tenant can come to me and write. We already we already are seeing that the vacancy rates are pretty low there. It's such a huge industrial area estate which is there, the mint industrial estate. That finding employment is pretty easy. The community there is amazing. Yeah, it's amazing. People enjoy their life. People enjoy their work. People enjoy what they're doing there. Young professionals go there. Whether first home buyers go there, investors go there, portfolio investors go there. After their third property, after their fourth property, they want to go there because they understand that they are going to make value. They're going to make money out there. Anybody who thinks that he wants to have a piece of what's happening in Sydney, anybody who says, "Okay, I need to be in an area which is gentrifying, which is completely changing and having a makeover, that's the area to be. It has so much of good rental consistency coming out there. What do what do I want there?
Julius38:20
Because if you compare with other states, probably if you go to Brisbane, go towards Kapulcher, you spend $1 million.
Parag Dixit38:26
Yeah. Too
Julius38:26
far, very low socio. You're spending that much in Minto. You spend only 1 million. You get much more. You're in Sydney.
Parag Dixit38:33
You're in Sydney, and you get so much more.
Julius38:35
Of course, yes. So capital growth wise, very very high capital growth potential. Strong rental yield like around 3.8 to 4% on houses and more than 4.5% on units. Yeah. So when you look at the cash flow, if the property prices are around 1.5 million and if you are at 3.5% or 4% yes, it's not defensive. But when you say you are still in 1 million dollar range, and if you're still sitting at 4% yield, it's not bad. Your out of pocket is not extremely higher. Yeah, and when you look at the affordability side, great affordability within the buying and renting.
Parag Dixit39:11
Great affordability within buying and renting, and that's what makes sense. Yeah, that's it. Makes it easier.
Julius39:15
Yes,
Parag Dixit39:17
it makes it so much easier when you're wanting to do that, and it's it allows you to be able to enter into a property because you you are you are you're assured that you are that your money is safe. You're going to get benefit out of it. You're going to get value out of it. You're going to make money. You're going to have a aggressive but yet a defensive investment. Or if you're a first home buyer, you will say, "Okay, I love to be there. I'm going to get capital growth out there, right? Yes. Okay. So my favorite question, back to you again for this fifth time today. What do I buy?
Julius39:50
Okay. The advisable asset is basically buying a freestanding home, 12 minutes walk eastern side of the metro station.
Parag Dixit39:58
All right. Okay.
Julius39:58
Yeah. If you buy that, then. That area has lot of demand.
Parag Dixit40:02
That is a lot of demand. Yeah. Okay. Okay. So and that that that attracts you. So if you are there within 1012 minutes of walking around the train station, and if you are able to get a good lot out there and hold on to that land, it's a it's a good good buy. Goodbye. It will very good buy.
Julius40:17
And you'll find a little older house with the big blocks as well.
Parag Dixit40:21
Yeah,
Julius40:22
you are still at 4% yield, and if you put granny, you can increase your yield. You still have area gentrifying. There is a lot of subdivision happening. Yeah, new houses are coming up, so that you have an option of subdivision in future if council approve that.
Parag Dixit40:35
Yeah,
Julius40:36
if you get a good lot or you buy a good decent house, eastern side of Minto, close to train station, you'll be fine.
Parag Dixit40:42
You'll be fine. Absolutely fantastic. Now that's a that's a good that's that's that's a good bit when we talk about Minto. Minto, I know I know how that suburb has changed its nature, and it's a lovely suburb which has come up with. But we've discussed about all of these five. But I think the icing on the cake is the bonus suburb, which we are talking about right now. It's a beautiful suburb. It's such a beautiful suburb. Instead of, so you know, it's surrounded by you know this this high pocket of growth areas like Oran Parks and Treggy Hills. But the suburb which we're talking of, Camden South, Camden South is amazing. It has, it has that countryside love there, you know. Large lots, 1000 square meters lots, 700 square meters lot, 800 square meters lots, and it it gives me a lifestyle. It gives me a prestige appeal to it, and it's just it's close to Camden Town, anyways. It's there. It has very strict zoning limits, so subdivision cannot happen there. When subdivision cannot happen there, then the supply is capped. Yeah. When supply is capped, it allows me to breathe easy. It tells me that I will never have high density or not likely to have high density. It tells me that I may have a phenomenal lifestyle out there, and it tells me that okay, this is the place to invest in. I'm not too close to the CBD, so I may not get too troubled by the traffic and all that. But I'm still close to the Nipin River, and I can be pretty in a good lifestyle. It's a leafy lifestyle. It's a beautiful lifestyle out there, right? Correct.
Julius42:20
So, it's kind of lifestyles above where people would like to upgrade. Those who like a lot of nature or tranquility, it's it's pretty good suburb for that. So, data wise is pretty good. Median prices are very close to 1.1 to 1.2 million. Depends on type of property you buy. Probably you can go into few millions as well if you buy an acreage, but they are big lots.
Parag Dixit42:42
Yeah, yeah.
Julius42:43
They don't have any units, so because majority of the houses are bigger houses or or deattached. Yeah. Wow. Yeah. And then rentals are close to $700 per week. That means around three and a half percent yield. Yeah. So, but yeah, yield is moderate, but you are still getting a lifestyle as well.
Parag Dixit43:01
Yeah, true.
Julius43:02
True. Vacancy rates are 0.9% below 1% Based on markets, 25 days, four weeks.
Parag Dixit43:08
Still okay. It's such a nice area, and still you have just four weeks of
Julius43:12
yeah. So purely owner-occupier pocket with limited housing supply. So that will drive the growth in that pocket because yeah, a lot of people would like to upgrade. There, there are a lot of people would like to go and live in that pocket, but because of the lower density, basically lot sizes are bigger, and there is not lot of houses available in the market. Stock is always low. Inventory is always low. Oh
Parag Dixit43:36
wow! So if there is something which gets list, I'm pretty sure it gets snapped up pretty quickly,
Julius43:40
easy, easy.
Parag Dixit43:41
It's this is amazing, and you know that's that allows it. It's it's that allows you to be into a suburb where you can enjoy your life.
Julius43:49
Yeah,
Parag Dixit43:50
right. And it allows you to be in a place where you can have a good good good space to yourself, where you can live better, where you can where you can enjoy what you want to do? You can have employment right now as well because right, it is pretty close to all the employment hubs. It is amazing. It's a peaceful suburb. Owner occupiers love such kind of suburbs. Yes, very nice areas, large yards, schools are nearby, large parks are there. You know, investors love it because when it's 85, 90 percent owner occupied suburb, if you have a property for investment, you're going to get a fantastic tenant. When you're going to get a fantastic tenant, a high-quality tenant which is wanting to be in that area because they love that area, you're always going to have a low vacancy rate. When you're always going to have a low vacancy rate, you're going to make you're going to have a good rent coming out there. Lifestyle is anyways assured when you're in that suburb, so it's it's a win-win if you are an owner-occupier or if you're an investor, and you will always be saying that okay, I want to upsize as a family. I want to upsize. I got a house which is coming up in South Camden. Let me go and grab it. If I am a local business owner, is a house coming on there? Let me go and grab it. If I am someone who who wants to move out of the. Hustle and bustle of the city or the nearby suburbs, which are smaller, large sizes. I want to go and buy there. If I'm if I'm looking if I'm an investor who is looking at a good capital growth, who is saying that long term I want to be in a place where it is nearly assured that I will have a capital growth. I want to go and buy there. That's the that's the attraction of that suburb. That it's giving me everything which I want to have, and it's giving me larger lot sizes as well.
Julius45:26
Correct. Yeah. So that's why when you look at the capital growth, it's pretty certain because of the fact that land sizes are bigger, and then you are still on the low density. That means not massive subdivision will happen. So you have a limited supply always available.
Parag Dixit45:40
Yeah.
Julius45:41
When I'm an investor and I'm looking for rental yields, it's moderate. But your vacancies are tight. That's why that. So when you see okay, it's around three and a half percent yield. But yes, my house will not be empty for a single day because of the tightest vacancy. Demand and supply. Yes, there is higher demand from the upgraders. There higher demand from the retirees, there is higher demand from the business owners, but there is no supply. And affordability-wise, it's still 1.1 million dollar enterprise. It's not bad. So basically, it's a suburb where you can hold those properties for a longer time, and then you can witness that capital growth because of the constant demand, which is being created by multiple owner-occupiers, as business owners or retirees.
Parag Dixit46:27
Absolutely right. Absolutely right. And no, I know I'm going to put you that to the spot once again with that. This time is going to be tough for you to answer to me because this whole suburb is so unique and so nice and so lovely to be. But still, if there is a particular part of that suburb where I can buy, where would it be? Where I can where I'm even better off? You know, it's such a nice suburb, but how can I be even better off? Correct.
Julius46:50
So this is a lifestyle suburb, so you have to be very selective
Parag Dixit46:53
if
Julius46:53
you want to have very good capital growth. So if you want to buy something, four bedroom, nice to four bedroom, two bathroom house, at least 800 square meter land towards the Napin River parklands.
Parag Dixit47:04
Yeah,
Julius47:05
these are where you have a low density, and it's quite beautiful over there.
Parag Dixit47:10
It's quite beautiful over there, and I'm supposed that there will be so much of scarcity. There won't be any subdivision out there. There won't be anything out there. So you are kind of assured that you will always have the uniqueness, the niche value of that area, which will always, in in all probabilities, allow you to to get a good long-term growth in that suburb. Right, correct. Always fantastic, fantastic. Now this is this is good. The good part about all suburbs, which we've spoken about, the five in this one and the bonus one, is that all of these suburbs bring so much of uniqueness? They're all affordable suburbs. They're not those 2 million, 3 million ones which you hear and fear about when you read in the media. They're all around millionish dollars, but they are growing. They're providing value. They're providing good rental yields. They're providing good tenants. They're good quality tenants. They're providing opportunity to first home buyers, to owner occupiers. They're providing opportunities to investors. They're providing opportunities to one and all to go there and to make money. As a, if I if I'm looking at today's reality in Sydney, you know that there are high interest rates. We all know that there are affordability constraints in so many other areas where we know that, but that is what's caused the buyer demand to shift to you know out of west and southwest kind of hubs where you got low vacancy rates and you got everything what we want there right? Yeah,
Julius48:34
correct. So every market has a cycle, right? So Sydney had been out of the cycle from last three to four years, where most of the market caught up and then they have reached up to million dollar, where the outer suburbs across major capital cities have reached more than a million dollar. So these are the suburbs where when you focus, they are still in reach of million dollar. Or there is one where it's around one and a half million, but you are very close to city.
Parag Dixit49:02
Yeah.
Julius49:02
But still, your yields are 4% Still, your all the demand and supply parameters are in line. Still, capital growth parameters are in line. Still, population growth is very strong.
Parag Dixit49:12
Yeah. Yeah.
Julius49:12
And still, they are very affordable. Still, even if you are in Sydney, you can buy in sub million.
Parag Dixit49:17
Yeah.
Julius49:18
With good rental yields.
Parag Dixit49:19
With good rental yields, you can have a good equity which you can build in these areas. You have transport connectivity in these areas to areas like Tungabies and Mintos. They are so much on. They're on the railway line, right? They're there. Milpira and South Windsor they provide you with so much of an infrastructure growth which is coming up there. Consistent demand which are coming up there. Scamton South, Rose Meadow, they offer you so much of land scarcity that there's nothing else which can happen there. Where I am very sure that I will have consistent, and I'm I'm very assured that I will have consistent growth. All of these suburbs bring those uniqueness to us, correct? And that that's why it allows you to buy in. Affordable, good, high quality, growing suburbs.
Julius50:04
Yes, that's right. So it depends on the strategy and the focus. But when the strategy is higher capital growth, you have the selected suburbs, which is sub million. If the strategy is higher capital growth with the you have to manufacture the something from the land, then you have a selective suburbs. If the strategy is okay, you need a connectivity lifestyle. Then Sydney offers that as well in sub billion range.
Parag Dixit50:27
Absolutely right, and that's why that's so rightly put up, Julius. That these offer everything to someone who wants to buy and wants to buy an affordable suburb and to a high growth suburb in Sydney. Thank you very much for joining in, guys. We will be coming back with the next part of this series where we'll talk about suburbs to avoid. They're not bad suburbs, but they are suburbs where you don't get such goodness as you get in these ones. And we'll be talking about in the next part there. But till then, tune in with us.
Julius50:58
Thank you.
