Holy schmoley batgirl you just found yourself one agent who lies.
Birmingham Gardens did not blink once thru the whole Golbal Meltdown.
2002 & 2003 = +40% and +30% respectively.
2007 = +2.0%
2008 = +3.5%
2009 = +2.2%
FHB in Newcastle
- Thread starter NewMatt
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Holy schmoley batgirl you just found yourself one agent who lies.
Birmingham Gardens did not blink once thru the whole Golbal Meltdown.
2002 & 2003 = +40% and +30% respectively.
2007 = +2.0%
2008 = +3.5%
2009 = +2.2%
I wouldn't buy in Birmingham Gardens nor would I call that agent a liar based on the info provided.
Forget the boom - those figures are not to be factored in.
2-3.5% is not going to make anyone rich. The agent is right - there are better suburbs for capital growth and better suburbs for student rental in Newcastle - is one of the things I have done right is my student rental place
Mayfield East is the best part of Mayfield.
The further west you go the worserer it gets
New Lambton and Lambton may feel overpriced but it is in very high demand. New Lambton has one of the best state schools in the district and people buy here just for that reason. It is a lovely middle class area and anything under $500K gets snapped up - this suburb is my first choice in the PPOR hunt and I have lived here for 7 years now.
Many of your senior specialists at the JHH will be living in New Lambton Heights - some of the best real estate in Newcastle tucked away in those tightly held streets. Is a beautiful part of town and I venture in to walk my dog. Can't afford a PPOR in there
Hamilton North is the worst part of the Hamilton area. It is quite industrial and near the rail. You also have the Westpac helicopter flying in and out at all hours. Id consider an IP there but have crossed it off my PPOR list.
If I was spending your budget I'd be considering a home in Adamstown. It borders some of the best suburbs and I think it will have strong CG. It is on my PPOR shortlist.
If you want to catch up for a coffee and/or beer and chat suburbs just let me know. I got nothing to sell to you
Why not?
If you are going to calculate 10 yr CG trends then you have to account for booms (and busts) and flat periods over the whole period.Agreed BUT the point I was making was that while many parts of Australia were taking a "hit" in the Capital Growth stakes in the midst of the GFC, Birmingham Gardens was actually still experiencing +ve growth, even if it was only 2-3%.
Agreed. New Lambton has done very well in the CG stakes.
batgirl, back to your initial question for a moment, if you are seriously thinking of buying near the Uni with the intention of renting out a couple of rooms then ideally you need to buy within 800m - 1,200m walking distance. If this is also going to be your PPOR, then yes, I would not be buying in Birmingham Gardens or West Mayfield (just a personal choice) either as Simon said.
But you could consider places like, but not limited to, North Lambton say around Turana Pde., where it is lovely and leafy with parks etc and you can literally walk to the front gate of the Uni in under 5 minutes. (Not as nice as New Lambton though)
Other than that you need to be on a transport route - many buses run out to the Uni from all over.Why not?
QUOTE]
Beacause the boom we experienced then is not likely to be repeated anytime soon and is certainly not cyclical. It was extraordinary and spruikers selling you a property with forecasts based on growth experienced then are shonky in my eyes.
But everyone has their own opinions
I am in a similar situation and am looking for my first house and PPoR. Haven't quite decided what I'm after but I am currently in Lambton having rented in Jesmond and Hamilton have found all three to be good.
Lambton is quiet and more mum & dad types, Jesmond quiet but more er.. odd types around whilst Hamilton is all bustle and steer clear of owning a house on the trip from the races to the pubs or the pubs to the housing commission!
Having been a student as well, students will live anywhere and it is mainly first years who are looking to be very close to uni. Don't really agree with the 800m-1200m walking distance comment, plenty of people walk a lot further and continue to pay for the experience. Warabrook is an emerging area that backs onto the University and attracts good rent.
You do also get a progression to further in town by those who have been burned paying big $$ for a taxi - you might be surprised as to how many kids want to be in the city so they can walk to clubs and pubs. Doesn't hurt that the beach is closer either.
I am looking to buy with a friend (with a contract) to help share the burden!
Lambton is quiet and more mum & dad types, Jesmond quiet but more er.. odd types around whilst Hamilton is all bustle and steer clear of owning a house on the trip from the races to the pubs or the pubs to the housing commission!
Having been a student as well, students will live anywhere and it is mainly first years who are looking to be very close to uni. Don't really agree with the 800m-1200m walking distance comment, plenty of people walk a lot further and continue to pay for the experience. Warabrook is an emerging area that backs onto the University and attracts good rent.
You do also get a progression to further in town by those who have been burned paying big $$ for a taxi - you might be surprised as to how many kids want to be in the city so they can walk to clubs and pubs. Doesn't hurt that the beach is closer either.
I am looking to buy with a friend (with a contract) to help share the burden!
Propertunity
I'm interested in finding a house in an affordable Newcastle/port Stevens suburb which is rentable and has potential for improvement (both the house and the suburb).
Where should I be looking do you think?
Also, there is no much entry level stock at present,
do you believe this is likely to change in the near future?
Thank you and Regards
I'm interested in finding a house in an affordable Newcastle/port Stevens suburb which is rentable and has potential for improvement (both the house and the suburb).
Where should I be looking do you think?
Also, there is no much entry level stock at present,
do you believe this is likely to change in the near future?
Thank you and Regards
Your requirements are pretty open and need to be refined before I can answer properly.
Every house in every suburb is "rentable" or can be made so.
Properties which you can reno to add value to, exist in all suburbs too
What is your definition of "affordable"?
Correct, there is not much of any stock at the moment. Vendors tend to hold off until after Christmas / New Year and more stock generally comes on in February. But also bear in mind that entry level stock does not need to be advertised much (if at all). Most selling agents have lists of BAs & other purchasers to call in the event that they list something saleable.
I try not to speculate on such things.
See what happens in February.Newcastle is always tight for rental properties so if yopu buy at the cheaper end of the market and make it habitable you will easily let it out.
Considering that everything is rentable you should focuss on the suburbs that should do well with capital growth.
In my mind they are the inner city suburbs and trendy suburbs.
Happy to talk offline with anyone serious in buying up here - am pretty familiar with whats out there as I have been shopping for a PPOR of late.
Cheers,
Considering that everything is rentable you should focuss on the suburbs that should do well with capital growth.
In my mind they are the inner city suburbs and trendy suburbs.
Happy to talk offline with anyone serious in buying up here - am pretty familiar with whats out there as I have been shopping for a PPOR of late.
Cheers,
Good comments Propertunity & Simon...
The one thing I didn't mention but was thinking about today is that student accommodation in the immediate or very close vicinity to Uni is very rentable on a per room basis. This means that you'll be able attract a real premium based on the worth of each room, not the whole house. Quite a few people manage their own properties to micro-manage this. Another factor is that at least having the option of a furnished room is desirable!
I've sent you a PM Simon.
The one thing I didn't mention but was thinking about today is that student accommodation in the immediate or very close vicinity to Uni is very rentable on a per room basis. This means that you'll be able attract a real premium based on the worth of each room, not the whole house. Quite a few people manage their own properties to micro-manage this. Another factor is that at least having the option of a furnished room is desirable!
I've sent you a PM Simon.
Thanks, , my definition of affordable is anything with a selling price that has a 1 or 2 in from of it and up to $300K with 2 bedrooms or more.
Ideally current yields should be over 7% (but not student accomodation)
or which can exceed 7% with a bit of work and in a rentable area (not in the bush)
Is it too much to ask?
Port Stephens is not like Newcastle.
They were hit much harder during the recent downturn so this may mean a bargain might be found. But They don't have any major employers up there and seem to be a lot of retirees living there for lifestyle.
Rental is tougher there. Vacancy rate is much higher than Newcastle and some areas have a real problem with disaffected youth.
I personally think Newcastle is the better bet although with research you might make a decent CG in Port Stephens if you know your market well.
Port Stephens is also very seasonal. Holiday season see's it flush with Sydney people and their money then come the school term and the place is a ghost town again.
Simon
These are my thoughts as well but I'm scared or vacancies so I prefer to buy where it will be easy to find tenants
There are some non beach towns like Raymond Terrace in Port Stephens where you can get some good deals for positive cash flow from rental with a busy and growing community with two supermakets, several schools and as a center for most of the Port Stevens for shopping. There is quite a few developments going on in this area.
If you go to the beach then Salamander Bay is also going through developments so might be a good place to invest. I would suggest researching and taking a deeper look into the pros and cons.
I'm buying a unit in Waratah (south), Newcastle as it is rapidly gaining higher prices due to demand as people look past Hamilton as it is becoming too expensive.
If you go to the beach then Salamander Bay is also going through developments so might be a good place to invest. I would suggest researching and taking a deeper look into the pros and cons.
I'm buying a unit in Waratah (south), Newcastle as it is rapidly gaining higher prices due to demand as people look past Hamilton as it is becoming too expensive.
Monsoon
what are the yields like there?
Well it's been so long since I have been researching but back a few months ago it looked ok and prices were rising rapidly. My unit is costing me $221,000 from an asking price of 230k. I was lucky to find it before it was fully advertised. I have the place rented out for 1 year from settlement at $260 pw and of course I need to take out costs for strata etc so it's not quite positive yet but not too bad. In fact I just noticed another unit in the building advertised to rent at $280 pw and my one if probably the best in the building as it has great views on the corner in top floor. So after the first year I hope to rent it out close to $300 if rents don't go down and I give it a splash of paint inside etc so it will be positively geared then I think.
Waratah is also quite popular because it is central to a lot of places and if you head out west it gets quite close to the Uni.
It will not have a 1 in front of it
If it has a 2 in front of it then it is a run down house on a main road (generally).
You can get 6.5% easily enough.........7% just needs more work (either looking to find or in reno to be done)
