Suburb Spotlight Ropes Crossing, Sydney
Ropes Crossing Overview Ropes Crossing is a fully serviced Lend Lease Estate located just one hour west of the Sydney CBD and 30 mins west of the Parramatta CBD. Approximately 30 Custodians invested in Ropes Crossing during the years 2011– 2012. Early on, Custodian identified Ropes Crossing as an area with the potential for significant capital growth. In addition to the strong market fundamentals underpinning the Sydney Market, Ropes Crossing ticked all the boxes: • D eveloped by the large national developer Lend Lease Group. • A bundance of local employment opportunites. • Well serviced by local infrastructure. • Accessibility to the Western train line and M4 Motorway. • The staggering development and infrastructure pipeline. • T op quality public and private schools and the University of Western Sydney.
“
ver 30 Custodians O have purchased in Ropes Crossing. ALL have experienced capital growth in the vicinity of $100,000-$150,000 in just 3-4 years.
”
It is understood that each Custodian within the Ropes Crossing locality has experienced an uplift of $100,000- $150,000 in Capital Gains. Recent independent bank valuations conducted in the estate for Custodian Clients have supported this. Assuming that 10% deposits were made, they have all doubled or tripled their initial cash investments in just 3-4 years.
2
1
Buy Land for Capital Growth True to the ‘7 Steps to Wealth’ model, the land component of your property investment is what appreciates in value. Custodians who purchased in Ropes Crossing in 2011 have seen capital increases of $100,000$150,000 with the bulk of their returns coming from the land component of their investments. On a dollar per square metre basis the story is just as compelling. There is no doubt that the Custodian clients who purchased in Ropes Crossing have timed the markets well. However, property is a long-term game and clients need to be thinking about how they can best use their equity gains to further build their portfolios. Diversification with several properties across various geographical locations and sub markets is a good strategy for shielding your portfolio from cyclical downturns and creating consistent long term returns.
2
“
These capital gains have been supported by recent Mortgage Security Valuations undertaken by bankassigned valuers. These favourable valuations are allowing Custodian clients to access their equity and ultimately duplicate into the next property on their portfolio building journey.
”
3
• Boost infrastructure funding for local infrastructure. • Future proof the Housing Acceleration Fund to drive long term housing growth. Recent Comparable Land Sales in Ropes Crossing Most Custodians purchasing in Ropes Crossing did so at• around the $500 per metre mark. A commitment tosquare release all sub-regional Current transactions are pushing the $1,000 per square metre mark.
plans within
and closing stock at the end of the quarter Source: NLSP
Median Land Price and Size
Median Land Price and Size Median Land Price and Size
the first 100 days of Government.
Address 4 Blackburn Street
Date
Sale price
Area
$/m2
1/03/2015
$326,000
312.5
$1,043
Taxes and Levies
NSW remains the expensive State or Territory in 58 Stephenson Drive 23/12/2014 $291,000 275 most $1,058 Australia to do453 business. $773 Taxes and levies make up 30% of 23 Rossetti Ct 23/01/2015 $350,000 NSW house prices. Bringing down these costs will make new housing more affordable, project delivery more viable In the recent “State of The Land Report 2015” The Urban Development Institute of Australia supply. UDIA recommends highlights how the average dollar per square metre forand land boost in Sydney has increased dramaticallythe following: as lot sizes decrease and average lot prices increases. Illustrated on the next page:
• Use the land tax system to introduce tax increment financing to pay for new community infrastructure. In the medium term, a revamped land tax system should replace levies imposed on the new homebuyer. • Improve transparency around infrastructure delivery processes and the charges borne by households by scrapping Voluntary Planning Agreements. • NSW needs Councils that are financially viable. Rate pegging must be scrapped to allow Councils to better fund recurrent and planned capital expenditure.
10
The 2015 UDIA State of the Land Report
Source: NLSP Quarterly Market Activity
Sydney Greenfield Lot Production Year
Lots Year Released End Stock
Median Median Lot Size Price ($) (m²)
Per m² land price
2009
2503
1076
520
$269,000
$518
2010
3526
1266
524
$293,500
$560
2011
Sales (lots per quarter) 498Releases (lots per quarter) $592 3890 1449 $294,500
2012
4640
Closing Stock (lots end quarter) 1870 508 $295,000
$580
2013
6690
494
509
$323,500
$636
2014
8597
342
450
$339,750
$755
Source: NLSP
Source: NLSP
INFILL PERFORMANCE The key infill performance indicators of dwelling approvals and completions have seen a sharp increase from 2012/13 to 2013/14, indicating a flourishing infill market. ABS figures show that from 2012/13 to 2013/14 dwelling unit approvals are up in New South Wales by 37% (from 21,812 to 29,875) while at the same time dwelling unit completions have jumped 15% (from 32,628 to 37,360). Sydney’s infill market continues to do its fair share of heavy lifting when it comes to delivering new housing. 4
FUTURE PROSPECTS
UDIA NSW, through its Land Developm has prepared forecasts based on cons development industry participants. (S
UDIA’s forecasts show a major increas in the next five years with Sydney in production targets identified by A Pla to 1% in 2014/15 and 24% by 2018/
The NSW Government has announced Greater Sydney Commission, a dedica with steering delivery of A Plan for G The objectives, charter, membership a Commission will be vital to its effectiv be defined in a transparent and inclus key stakeholders in NSW or this new for meaning and support. It is UDIA’s primary purpose of the Commission w the formation of a Greater Sydney Vis the delivery of this vision. Sydney’s g delivering growth and quality of lifest combative and divisive debate in to a So while the formation of the Commi UDIA calls for the NSW Government a the formation of a Greater Sydney Vis planning reform at the top of its agen March election — UDIA’s forecasts are bi-partisan approach occurring. 5
Comparable Sales History When assessing your capacity to expand your portfolio the banks will engage valuers to estimate the ‘fair market value’ of your property. These valuations are conducted using sales evidence of recently transacted properties. In 2015, Ropes Crossing has seen some quite favourable sales comparable to Custodian stock. These encouraging sales are characteristic of the booming nature of the Sydney residential market. Examples of recent sales in Ropes Crossing are below:
25 Bluebell Crescent, Ropes Crossing
Request Your Complimentary Personal Property Portfolio Review To find out about what this means for your investment and to hear about the latest exciting new Custodian investment opportunities, please contact our team of property experts for your own personal ‘Property Portfolio Review’ on:
Phone: 1800 174 999 Email: service@custodian.com.au
Area: 603m2 Price: $700,000 Sale Date: 6 Mar 2015
66 Rafter Parade, Ropes Crossing Area: 400m2 Price: $615,000 Sale Date: 10 Apr 2015
2 Bradley St, Ropes Crossing Area: 511m2 Price: $620,000 Sale Date: 17 Feb 2015
All information is current and accurate as at April 2015.
6
7
PO Box 2256 Nerang, MDC, Queensland 4211 1800 174 999 service@custodian.com.au www.custodian.com.au