Gwandalan, Lake Macquarie, NSW

[Wallym]

Gwandalan, on the edge of Lake Macquarie, NSW Central Coast.
A small lake side town on NSW Central Coast bordered by bushland mainly owned by a utility company.
The "Blue collar" town is mixture of older fibro and brick homes.
There are still reasonable properties available around the $200K mark.
There is also reasonably new estate with a number of vacant blocks still available.

The rumours are:
1) Woolworths have purchased a block of land for future retail development.
2) The power company that owns a significant piece of bushland on the edge of town (next to said Woolies) are trying to do a deal with the state government, basically a land swap. The upshot is that there could be a land release for approx 720 new homes.

The Woolies thing is interesting because one of the biggest drawbacks of Gwandalan is the lack of shopping.

My questions are:
If this happens, How do you think things are likey to play out?
I'm wondering if there could evolve an "Old Gwando" and a "New Gwando" and will people think, "Why should I buy in "Old Gwando" when I can buy in "New Gwando" and have all the whiz bizz?", and if so, how will this effect house prices?
I'm guessing that existing house prices will be a little depressed until the new development gets close to being full.
But after that?
Does anybody have any experience with similar situations?

Also, I believe that the towns around Lake Macquarie are set to become growth areas with the baby boomers fast approaching retirement.
Does anybody know anything about this area?

 

[Jayro]

We live in Gwandalan after purchasing our PPOR 2 yrs back when we desided to move up from sydney. Sydney place is now an IP for us.

I can tell you it depends on what you class as "reasonable property". There are no reasonable property's for $200k. The mid 200's is closer to the mark for a property that is rentable without major reno work and expences. There is property in the lower $200K asking price range but they really need a good reno to get up to scratch.

My parents had a house built in the new estate at the same time we moved up here. There is a big difference in prices between the new estates and the older estate. Houses in the estates of both Summerland point and Gwandalan are around the $430k-$550k range depending on land size and size of the homes themselves. The new estates are very nice areas if thats your thing. Its just like a glenmore park etc.

As for the shopping centre, I'll believe it when I see it. It has been talk for atleast 4 yrs now that I know of. Nothing has come of it yet. I have heard that 2009 is the time it will happen but we will wait and see. The plans are for a new Tavern, medical centre and small shopping centre with the woolworths as well in there. This shopping centre will be at the round about as you come into Summerland point/Gwandalan. It is not in the new estate. They have predicted that by 2009 you will not pick up a vacant block of land for anything less than $300k in new or old estate but again, wait and see.

There has been decent grown here during the past yrs up until the last couple. The last couple of yrs have seen no growth and wouldnt expect to see any too soon. Would be nice but dont expect it.

From an investment point of view we have considered moving on from here up to Nords wharf and keeping this home as a rental but not sure if the quality of the tenants here are something we want to deal with. Thats our only concern. MOST people do seem fine but there is a little of that "rough" element I would have to say if I was to be honest. My accountant has 5 rentals he owns here and he has no probs so maybe its ok.

As for other towns on Lake Macquarie. Well I think there is huge potential. We are looking at Nords wharf where you are talking blocks of land to 1400sqm with a 3bed brick home (but a nice extention would help) and it sold for the $350K mark. a friend has a very nice house with just a reserve park between him and the lake. Land is 1200sqm and prop is valued at $700-$750k. For those with the dollars there are some very nice absolute water fronts with own boat sheds and jetty for $1m-$2m mark depending on condition of home.

On the western side of the lake away from the ocean you can get water front etc from the $650k mark. Much much cheaper on the western side. Expected to be good growth all around the lake during the next few yrs from around 2009 onwards they are saying.

Hope that helps a little.

Jayro

 

[Aimjoy]

Wallym,

Prices in last 6 months - slightly up 4% but 295 days average on the market to achieve a sale would worry me as an investor.

Its a pretty place but a bit too far "out of the way" for my liking - as an investment.

MHO only.

Aimy

 

[Jayro]

Aimy is right I think. I agree it is too far out of the way for an investment. Its a good 45min trip down to gosford or 45min up to newcastle. 30min down to tuggerah westfields and 30min up to charlestown sq shopping centre. And not easy to get to I dont think for those on public transport. No restaurants, cafes etc. Well like one at the bowling club and a new little cafe but not great picks by any stretch of the imagination.

Dont get me wrong. Its not a bad place. And for us it was a compromise. We knew it was a little "out the way" but the lower price has ment we can still be comfy in our home, and still continue to invest without martgage stress due to a rate rise or anything. It is very nice and bushy and on the lake with good boat ramps etc.

My wife will win and we will end up investing elsewhere in more suitable investment areas for now then sell here to move to a new PPOR when that time is right.

Jayro