Cessnock Area vs Maitland Area

[Proper Property]

Hi Everyone,

I am a long time reader, first time poster to these forums. I am in my early 20s and I am currently researching on all various areas to invest into for my first investment property. I have a budget from $250K - 400K and I have read that Cessnock and Maitland areas have some growth drivers in place and may be a suitable option for my budget. However I just wanted to get some insights from the experts on this forum to see if they are about to hit their growth or have they already experienced their major growth period.

Does anyone have any information on future projections on capital growth in these areas and whether you know which suburbs within these areas are warm spots so to speak i.e. may soon see future growth due to current developments occurring.

If anyone has some knowledge and insight in these areas, your wisdom would be more than appreciative.

Thanks!

 

[Property Bloom]

Cessnock Area vs Maitland Area Property Bloom

Hi There, we specialise in developing property in the Hunter Region of NSW, particularly in Cessnock and Maitland, so give me a call tomorrow or check out our website www.propertybloom.com.au

 

[susan_10]

Hi I am not an expert but I live in Lake Macquarie and work in Newcastle and have IPs in Newcastle and Sydney. What drive the housing market in Cessnock and Maitland is mostly the mines. Because there are more cheaper large block of land in Cessnock compared to Maitland plus the new connection to the freeway that is where the new developments are happening. You need to decide what type of property you want and what sort of returns you are aiming for, ie. high rent and modest capital growth or good rent and high capital growth. If you are looking at high rent and high capital growth then you won't get that in those areas.

 

[Pins]

I would have a look at the vacancy rates as areas like Cessnock and Singleton (where I have an IP) have had increases in vacancy rates in the past 6-9 months and rents and prices have dropped as a result.

Maitland has one of the highest population growth rates in the state so is worth looking at. It is also less dependent on the mines than places like Cessnock.

Personally I wouldn't be buying in the Hunter Valley until vacancy rates improve.

 

[JT7]

I would have a look at the vacancy rates as areas like Cessnock and Singleton (where I have an IP) have had increases in vacancy rates in the past 6-9 months and rents and prices have dropped as a result.

Maitland has one of the highest population growth rates in the state so is worth looking at. It is also less dependent on the mines than places like Cessnock.

Personally I wouldn't be buying in the Hunter Valley until vacancy rates improve.

Yes it's a difficult situation at the moment with properties affected by this down turn in commodity pricing. I have 2 properties up in Emerald in CQ and have experienced similar issues to you Pins.

There are so many issues to consider when investing in these types of areas but also remember that like most markets the commodity markets appear to be cyclic. Needless to say, the world still needs thermal and coking coal. Thermal coal is a cheap form of energy which is ideal for these developing countries like China and India.

Maitland does have high population growth rate. Be interesting to investigate how much development is going to take place. My guess is that it will be busy up there which may have an affect on vacancy rates and CG.......

Food for thought anyway.

Jack

 

[Pins]

Yes it's a difficult situation at the moment with properties affected by this down turn in commodity pricing. I have 2 properties up in Emerald in CQ and have experienced similar issues to you Pins.

There are so many issues to consider when investing in these types of areas but also remember that like most markets the commodity markets appear to be cyclic. Needless to say, the world still needs thermal and coking coal. Thermal coal is a cheap form of energy which is ideal for these developing countries like China and India.

Maitland does have high population growth rate. Be interesting to investigate how much development is going to take place. My guess is that it will be busy up there which may have an affect on vacancy rates and CG.......

Food for thought anyway.

Jack

I felt a bit better when the RE told me this is the 3rd or 4th 7 year cycle she's seen up there. It's the vacancy rate that is the issue.

As a friend who lives there said, the coal trucks still keep rattling by.

I did expect the market to hold up more strongly, but while it the economy is diversified to a degree, it is still heavily influenced by the mining sector.

Kate

 

[Proper Property]

Hi I am not an expert but I live in Lake Macquarie and work in Newcastle and have IPs in Newcastle and Sydney. What drive the housing market in Cessnock and Maitland is mostly the mines. Because there are more cheaper large block of land in Cessnock compared to Maitland plus the new connection to the freeway that is where the new developments are happening. You need to decide what type of property you want and what sort of returns you are aiming for, ie. high rent and modest capital growth or good rent and high capital growth. If you are looking at high rent and high capital growth then you won't get that in those areas.

Hi Susan,

I am looking for high capital growth and rent. Which areas do you think deliver both of these? In terms of just capital growth, would Maitland have the higher rate?

Thanks!

 

[susan_10]

I already said you won't get both in these areas as mining slowed down a bit. If your aim is high rent you need to look at Muswellbrook, Singleton and where new coal mines and CSG development are coming like Bylong, but do not expect capital growth. If you are looking at long term capital growth, Maitland is better than Cessnock. I can say you can find good rent and high capital growth in Newcastle and Lake Macquarie and with your budget you may be able to afford a townhouse or villa. High rent and high capital growth you can find in western Sydney where the government is spending a lot of money on development.

 

[Jacque]

Hmmmm well my little houses in Singleton all have appreciated nicely over the years, to the extent that I sold 2 of them in boom times and paid the PPOR off

I still have one little only lonely house there with the world's best tenants and it has appreciated by 270% over it's 13 year ownership, so who says there's no cg in regional towns? Rent has increased every year since I've held it as well.... definitely one of my better performers.

 

[susan_10]

I do not dispute the fact that there was, is and will have capital growth in regional towns. I was talking in general and I should have said 'do not expect high capital growth within a short period of time' in regional towns built by mining. However, the question is if Mr Proper will buy a property now, with his budget and the down turn in mining. I totally agree with Pins and JT7 regarding mining and residential market in those areas.

 

[TMNT]

Does anybody have a market snapshot of cessnock

Admittrdly ive neglected it for a few months

Prices had come down a littlem rents a bit harder just like th rest of the hunter

Has the rot finished yet?

I see asking prices are still pretty high. However activity doesnt seem all that high

 

[Cherry Pro]

I already said you won't get both in these areas as mining slowed down a bit. If your aim is high rent you need to look at Muswellbrook, Singleton and where new coal mines and CSG development are coming like Bylong, but do not expect capital growth. If you are looking at long term capital growth, Maitland is better than Cessnock. I can say you can find good rent and high capital growth in Newcastle and Lake Macquarie and with your budget you may be able to afford a townhouse or villa. High rent and high capital growth you can find in western Sydney where the government is spending a lot of money on development.

Agree with Susan about Lake Macquarie - bought our first one there March last year and prices have moved steadily on and rent has been pretty high and steady. Susan, whereabouts are you ? We are on the Morisset peninsula and just love it there; really good value for money in terms of what you can get on the Central Coast and take as long to get there from Sydney. Takes us door to door 1 hour and 10 minutes and you couldn't find those yields or prices in Western Sydney for sure.

 

[Theodore]

I too have overlooked cessnock
I have noticed a lot of good buys there recently one in
Alkira avenue at 210k now under offer

Couple possible developments site on offer

Think there is better value in Lower hunter
East Maitland tenambit woodberry beresfield

Lots of commercial development going up around
Beresfield so I do expect tarro bero and woodberry
To have an influx of people with local jobs looking to buy an rent
In the area

 

[Truly Exotic]

I too have overlooked cessnock
I have noticed a lot of good buys there recently one in
Alkira avenue at 210k now under offer

Couple possible developments site on offer

Think there is better value in Lower hunter
East Maitland tenambit woodberry beresfield

Lots of commercial development going up around
Beresfield so I do expect tarro bero and woodberry
To have an influx of people with local jobs looking to buy an rent
In the area

You really have to understand alkira avenue. Its the bad part of cessnock. That ones been on the market for ages

Cessnock has taken a fair pounding of late. The vacancy rates shot up

Those other areas you mentioned are good too. Have a look at raymond terrace for better proximity

 

[Theodore]

Yes I do agree alkira is rough but things change over time
I actually put an offer of 190k on the one at alkira
And it was accepted but i bought in alma st raymond terrace instead .

All my research thus far points to east maitland and surrounds
For Buy n hold CG
Evan contemplated putting an offer on one in tenambit ohearn st which
Would be the equivalent to alkira but couldn't justify the price at the time