Tuesday, July 23, 2013

Buy Next Investment Property Along North West Rail Link?



















Although the reality of buying another investment property(IP) isn't anywhere on the immediate horizon, these sort of plans need a long time to think about before implementation. Especially since property prices in Sydney are so crazy.

There are so many promising areas to buy properties for rental income. I've written about passive income from my investment property previously and most recently about the most recent house acquisition to live in.

Having visited Castle Hill Towers recently, I saw the construction of the North West Rail Link being built. This new train line will connect Nor West Business Park with the city and connect the Hills district suburbs that are densely populated(they currently only have bus services available) to finally acquire public rail services.

Suburbs that are likely to rise in prices due to the North West Rail Link stations being built: Cudgegong Road, Rouse Hill, Kellyville, Bella Vista, Norwest, Showground, Castle Hill and Cherrybrook. The new train line will hook up via Epping to go to Macquarie University, Macquarie Park, North Ryde and Chatswood, possibly terminating at the city.

When the Epping to Chatswood rail link was being built, I KNEW that property prices would boom DURING the construction and AFTER the rail line was finally completed. Never in my wildest imagination could I have known how quickly property prices APPRECIATED when the rail line was finally complete. Pretty much almost all the apartments within 10-15 minutes walking distance went up in value by approximately $100k to $150k within the year.

You could work and save year after year by scrimping and eating peanut butter sandwiches, not going on holidays and living miserly OR you could make wise investment moves and simply capture investment gains by investing wisely.

Other friends of ours are looking at buying IPs and there are so many potential suburbs. Any property within 15km proximity to the city will go up in value as our population grows and any suburbs that has large scale, public/social infrastructures being built will go up in value.

I'm still tossing over the idea about whether it would be a better move to buy close to the new railway stations being built on the new rail line or whether to stick to the tried and tested blue chip suburbs that are within 5km of Sydney CBD and are close to either water, cafes, schools or transport etc.

Historically, either choices would be wise but which would be the wisest move? Wouldn't we all like to see the future?


3 comments:

  1. Stumbled across your blog when searching for more info on the NWS rail link (I'm a Melburnian looking at the Sydney market with interest). Just wanted to say reading some of your entries that most of your views are quite similar to mine! Esp with Super (I really want to start self managing) and the cleaning! Bahhh.. I don't own a big house, but my parents do and I can see the amount of effort required to maintain. I read an article about "how much we're worth by the hour" which argues sometimes a cleaner is worth it provided you invest the spare time into wealth-creating opportunities :) Oh have you managed to get the 17-55mm yet? I own a 60D with the 17-55 f2.8 and its awesome - heavy, but the picture quality, versatility and build construction is second-to-none!

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    1. Thank you for your comment! Don't know if you're still reading this blog but I'll reply anyway just incase you do. I've been really preoccupied with work and a few other issues so this blog was neglected for those few months. I'm curious if you have bought into the Sydney market? The property market is super hot right now with properties selling way over their reserve/listed prices.

      Self managing would be ideal if you have a large amount in super (ideally over $100k)...unless you're an accountant of course and able to audit and lodge your own returns thus eliminating/minimising the accounting fees. When we calculate how much we're worth by the hour, what we earn or are paid is heavily eroded when you think about all the extra time incurred for work.
      Eg: If John Doe earns $1000 per week for working Mon to Fri, 38 hours per week, but it takes him two hours of travel to and from work, then his hourly pay isn't really $26 per hour but actually $20 per hour. Face value wise, he's earning $26 but time value wise, only $20 per hour.
      Regarding cleaning, maybe I'll just let the dust pile up haha =)
      We've got several lenses now. 8-16mm, 35mm, 50mm, 17-55mm, 100mm macro, 70-200mm. You're right, the 17-55 is awesome! Most often used lens when travelling =)

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  2. I think it's a good idea to check with your estate agent if you're intending to buy a number of property in the same area. You never know what kind of deals with the developer / builder that they can rustle up and you just might find yourself a very good price on the real estate!

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