They’re the hidden Sydney suburbs where buying a desirable home on a shoestring is both attainable and a passport to wealth creation.
An exclusive property report has revealed home seekers with savings as low as $50,000 can still bag properties in high-growth suburbs where values are set to rise exponentially.
These areas typically have property prices that are well below other parts of Sydney, but are located close to big job hubs, excellent transport links and rich amenities.
Improving infrastructure in these suburbs was also expected to push up home values at a faster rate than most of the rest of the market, offering buyers quicker equity gains, according to the Deposit Stars report from comparison group Canstar.
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Mustansar Nazir, with daughter Azka, recently bought a home in St Marys – one of Sydney’s top growth areas. Picture: Jonathan Ng
The report, powered with data from researcher Hotspotting, indicated high growth suburbs attainable for those with $50,000 deposits were Liverpool and Wiley Park in the southwest.
Other well-located suburbs offering units attainable with the same deposit were Jamisontown, in the Penrith area, and Regents Park and Harris Park, in the Parramatta area.
Median prices in all five suburbs were under $500,000 – or about 39-46 per cent below the norm in Greater Sydney. This meant first-home buyers were eligible for a raft of government support schemes such as a full exception on stamp duty.
Those with a budget of $100,000 were advised to target houses in western suburbs St Marys and Campbelltown, along with units in Newtown, Hurstville and Westmead.
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A unit in this Harris Park block recently sold for $520,000.
Hotspotting director Terry Ryder said it was a myth that buying a home was unattainable for households earning less than $150,000 a year.
“All the sentiment about the Aussie dream being dead in Sydney is not the full story,” he said.
“There are lot of opportunities to get into reasonably affordable markets in Sydney but you need to think out of left field. Often that means buying a unit first.”
Mr Ryder explained the Liverpool, and its surrounds, scored well as a market for lower budget buyers because of the “mini CBD”.
“It’s got everything there. A major hospital, shopping centre, university campuses one of Sydney’s transport interchanges and excellent rail links to the CBD,” he said.
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Source: Canstar/Hotspotting
“There is also a shortage of properties in the area and it’s unlikely developers will be able to add new units in at least the next five years so there is a lot of upside for prices.”
Units in Newtown scored highly as a choice for new buyers because, with a median of $765,000, they were nearly $1m cheaper than houses in the area.
“Newtown unit sales are rising rapidly, demand is increasing,” Mr Ryder said, adding that Newtown remained one of the most popular places to live in Sydney, with unrivalled amenities.
St Marys was considered a good market to buy into because of the coming rail link to Sydney’s second airport at Badgerys Creek. “There will be a massive jobs node around it,” Mr Ryder said.
Ray White principal Peter Diamantidis said St Marys was becoming a lot more popular because of the better value on offer.
Agent Peter Diamanditis of Ray White-St Marys said the suburb was nearly unrecognisable from 10 years ago.
“If you asked a lot of people if they wanted to live in St Marys then they would have said ‘no’,” he said. “What’s changed is that it’s become a lot better connected. The transport links are a huge draw. Even the streetscape has changed.”
Mustansar Nazir recently bought a townhouse in the suburb and said it had better opportunities to buy newer housing catered to larger families.
“We found in a lot of other areas the rooms were a bit squishy. They were maybe aimed at young couples, not families, or the houses were just really old,” Mr Nazir said.
“We liked that in St Marys you didn’t have to spend as much to get a bit of space but still be close to the action.”
Source: Canstar/Hotspotting
The Nazir family are looking forward to moving into their new St Marys home. Picture: Jonathan Ng
Canstar money expert Effie Zahos said home seekers who were keen to purchase in the highlighted suburbs should line their ducks in a row before they start looking.
“There is a lot of competition at the bottom end of the market,” she said. “You need to be prepared. Have your pre-approval ready. Know your budget. Know how you’re financing the purchase.
“There tend to be more buyers at the more affordable end of the market and those who have done thorough preparation have an advantage.”
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