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Jordan Springs | Capital Growth

September 3, 2012 4:06 pm
posted by James Parnwell

Jordan Springs Capital GrowthJordan Springs is a brand new suburb, in fact, it only recently received a postcode! This means that historical data is mostly non-existent. For this reason, I have commented on the Capital Growth seen in the Jordan Springs Case Studies and compared this to its surrounding suburbs!

Jordan Springs Capital Growth Breakdown

The following is a breakdown of the Capital Growth experienced by the clients of mine who have purchased in Jordan Springs. It is only a small sample size so it shouldn’t be used as Gospel, but it is actual data from people who have actually purchased properties in Jordan Springs.

Case Study

Purchase Price

Weekly Rent Sell Price Months Owned Annual Capital Growth
#1  $  435,000.00  $  495.00  $  495,000.00 16 10.3%
#2  $  439,000.00  $  510.00  $  500,000.00 11 15.2%
#3  $  435,000.00  $  470.00  $  495,000.00 16 10.3%
#4  $  435,000.00  $  520.00  $  495,000.00 17 9.7%
#5  $  485,000.00  $  540.00  $  555,000.00 16 10.8%
Average 11.3%

 

The average capital growth in the case studies I have given is 11.3%. This means that if a property cost $450,000 it increased by $50,850 in the first year. I should point out that none of these properties have actually been sold, however I have taken the capital growth from the lowest end of the estimated sell price, you can see this further in the case studies.

Here is some data from Colliers International and RP Data for the surrounding suburbs…

Suburb Median Price Change p.a. Rental Return p.a. Property Return p.a.
Cambridge Gardens 4.0% 5.1% 9.4%
Cambridge Park 2.0% 5.6% 7.2%
Cranebrook 4.0% 5.3% 9.3%
Penrith 0.0% 5.4% 5.1%
Werrington County 3.0% 5.6% 8.4%
Werrington Downs 1.0% 5.8% 7.2%
Average 2.3% 5.5% 7.8%

 

The Median Price Change per annum indicates that there was a Capital Growth in the surrounding suburbs of 2.3% on average. This is clearly well below the average of the case studies I have given. I would suggest the following reasons for the difference…

  • The clients didn’t purchase through the Lend Lease office which meant they were able to get some discounts on the purchase price.
  • All of the case studies were house and land packages. In this case it is quite possible that the land plus construction cost $439,000 but the end product was worth $495,00o. For this reason the second years capital growth is likely to be lower.
  • The surrounding suburbs are all well-established suburbs, so they sales data is based on existing property sales, not on newly constructed houses.
  • I have only used five case studies, so they aren’t comparing all the sales in a suburb. They are 100% accurate, but only a small sample of the entire suburb. Unfortunately, Jordan Springs is so new there is no data yet to compare it to. It is possible that the whole suburb has performed like this,but we can’t know until the data is available and released.

All in all, I’m very happy that my clients invested here because they have done so well. Will this be as successful in the coming year? My crystal ball is broken so I don’t know! It is up to you to do some research for yourself and decide if Jordan Springs is the right area for you to invest in!

Article by James Parnwell

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  1. […] are doing as well as some background data and research on the area so we can look at the expected capital growth and rental return for Jordan Springs. I’ll fill you in on some of the news and happenings in […]