Do you think real estate is the best way to build generational wealth?

When people talk about “generational wealth,” property is almost always part of the conversation. Here in Thornleigh, Westleigh, Pennant Hills, and Normanhurst, we’ve seen first-hand how holding onto real estate over decades can create a solid financial foundation — not just for the owners, but for their children and grandchildren.

But building wealth through property isn’t automatic. It takes smart choices, a long-term mindset, and a good understanding of our local market. Let’s look at why our suburbs are so attractive for investors, what’s worked in the past, and how to avoid the mistakes that can hold you back.

How Thornleigh Property Prices Have Changed Over 30 Years

Back in the early 1990s, you could buy a comfortable three-bedroom home in Thornleigh for around $250,000–$300,000. Fast-forward to today, and those same homes regularly sell for $1.7–$2 million.

This isn’t just luck — it’s the combination of Sydney’s strong demand, limited land supply in established suburbs, and our local area’s reputation for quality schools, leafy streets, and a strong community feel.

If you’d purchased a Thornleigh home in 1995 and simply held onto it, the capital growth alone could have set up your next purchase, helped you fund renovations, or been passed down to your children as a significant asset. That’s the power of compounding growth in real estate.

Turning One Home into Two: Unlocking Potential in Pennant Hills Backyards

One of the most effective ways to grow wealth is by adding value to property — and in our local area, that often means making better use of land.

Pennant Hills, in particular, has generous block sizes, with many properties over 800m². Depending on council zoning and regulations, there may be scope to:

Build a granny flat for rental income or multigenerational living.

Subdivide the block and sell or build on the new lot.

Extend or reconfigure the existing home to add bedrooms or living space.

For example, a well-positioned granny flat could add $400–$500 per week in rental income. Over ten years, that’s over $200,000 in additional cash flow, not including the increased property value.

Before making moves, it’s essential to check Hornsby Shire Council’s development controls and get advice from a local planner. We’ve seen homeowners underestimate costs or run into delays because they didn’t research the rules first.

Why Our Area Attracts Long-Term Investors

Thornleigh, Westleigh, and Pennant Hills offer something that’s hard to replicate in newer suburbs:

Excellent schools – including Pennant Hills High and Turramurra High School, a number of selective schools for both boys and girls along with a multitude of private schools.

Transport links – train stations with direct connections to the CBD, plus quick access to the M1 and NorthConnex.

Lifestyle – bushwalking tracks, parks, and a safe, family-friendly atmosphere.

Strong rental demand – from families wanting to be in the school catchment and professionals seeking a quieter pace without losing city access.

These factors create a stable property market. Even during slower growth periods, our area tends to hold value better than more speculative locations. For long-term investors, this stability is a big part of building wealth over decades.

Avoid These 5 Mistakes When Investing Locally

Real estate can be a powerful wealth-building tool, but it’s not foolproof. Here are the pitfalls we see too often:

Overcapitalising on Renovations
Spending $300,000 on upgrades that only add $150,000 in value won’t get you ahead. Always know the ceiling price for your street.

Ignoring Strata Rules
For townhouses and units, strata by-laws can restrict renovations, rentals, some owner’s corporations can have by-laws around keeping pets (although they cannot out-right ban them). Always read the fine print before you buy.

Not Researching School Catchments
In our suburbs, being on one side of a street can mean a different school catchment — and a significant impact on value and rental appeal.

Buying Without Local Insight
Every suburb has micro-markets. A property near the train line might appeal to commuters but could be less desirable if it’s too close to noise. Being in a flame zone can mean costly renovations.

Underestimating Holding Costs
Rates, insurance, maintenance, and periods without tenants can eat into returns. Budget for these so you’re not caught short.

If I Was Starting My Property Journey Again in Thornleigh…

I’d begin with a modest, well-located home close to transport and in a good school catchment. I’d focus on buying something with “potential” — whether that’s room to renovate, land to develop, or zoning that allows for future changes.

Government policies can shift quickly, affecting your investment strategy. Staying connected with an expert ensures you get timely guidance, saving you research time and helping you make smarter moves.

It would be a good idea to build relationships with local trades, property managers, and other owners. In our community, off-market opportunities often become available with agents before they officially hit the market.

Final Word

Real estate isn’t the only way to build generational wealth, but in our suburbs, it’s been a consistent and reliable path for decades. With the right property, a smart strategy, and patience, you can create an asset that supports you today and benefits your family for years to come.

At Page&Co, we’re not just here to sell houses — we’re here to help our neighbours make smart property decisions. If you’re thinking about buying, selling, or developing locally, we’d be happy to share our insights over a coffee.