Western Sydney suburb sees activity boost

“The possible demise of negative gearing has spooked some investors to turn out at Fairfield open homes, while we’ve seen a surge in online enquiries too,” said Chris Hart, principal of Raine & Horne Fairfield.

While the proposed changes to negative gearing and capital gains tax will not be grandfathered for existing properties, the policy is still expected to shake up the property market.

Angus Raine, executive chairman of Raine & Horne, said the policy “will prove cataclysmic for Australia’s $7 trillion real estate market and the broader Australian economy”.

With these potential changes looming, Mr Hart said that investors are realising how little time is left before the policy could come into effect, and so some are trying to get in before the Labor government potentially comes to power.

The context of the possible negative gearing changes, along with the prices in the Fairfield area, solid yields and an increased infrastructure spend, has resulted in the area becoming an investment hotspot, he suggested.

“Western Sydney real estate is a relatively affordable alternative, which, thanks to massive infrastructure improvements such as the second Sydney Airport at Badgerys Creek, has an excellent upside for capital growth,” Mr Hart said.

An example of the property being sold in the area includes a top-floor, two-bedroom apartment for $345,000.

“As an investment property, an apartment in an older-style apartment block like this can command a rent of $320 a week. This represents a 4.8 per cent gross return, which is appealing to yield-hungry investors,” Mr Hart said.