Hunter Region First IP plus reno

Hi Everyone,

first time poster, long time reader

I'm in Newcastle for the next 6 months and wanted to find a house i could renovate whilst here.
I'm willing to go as far as Cessnock and Maitland right now but i would consider further towns if it was worth my while.

I want to buy, renovate, revalue then rent or (even sell if the reval is good enough)
Revalue is the most important thing for me as i plan on moving onto my next IP quickly

My budget is under 250k plus reno money

I'm just not sure where should I buy?
There is so many towns, suburbs and suburbs within suburbs I dont even know where to start.

I'm also not sure how many bedrooms I should be targeting either?

Thanks in advance for your advice, will definitely keep everyone updated on this project.
 
Hi Everyone,

first time poster, long time reader

I'm in Newcastle for the next 6 months and wanted to find a house i could renovate whilst here.
I'm willing to go as far as Cessnock and Maitland right now but i would consider further towns if it was worth my while.

I want to buy, renovate, revalue then rent or (even sell if the reval is good enough)
Revalue is the most important thing for me as i plan on moving onto my next IP quickly

My budget is under 250k plus reno money

I'm just not sure where should I buy?
There is so many towns, suburbs and suburbs within suburbs I dont even know where to start.

I'm also not sure how many bedrooms I should be targeting either?

Thanks in advance for your advice, will definitely keep everyone updated on this project.

Hi,


Welcome to the forum!

You may want to keep an eye on this thread

http://somersoft.com/forums/showthread.php?t=88514

Alan (prop) may be able to help you about area. He is a BA and posts on this website. I personally haven't used his services but have read reviews about him.

Also, you want to make sure your finance and structure is setup correctly.

I was looking at cessnock, but changed my mind after speaking to local PM. Vacancy rates at time can be risky.

Good luck!
 
Thanks for the reply
I'll keep an eye on that thread

I drive up and down New England Highway on my travels for work and im amazed to see all the activity coming out of the ground all the way to Branxton, everyone seems to be gearing up for the Hunter Expressway to be finished.

I understand that numerous towns have released or will be releasing land and some towns set to triple in size.

I know my budget isnt the biggest but im trying to avoid the bottom of the market if possible.
 
you need to crunch the numbers and crunch them again before you make a purchase.

you know that areas you are looking at doesn't have a land shortage.

I guess ( just based on my limited knowledge):

You need to buy property at Below market value
Need to work out how much do you want to spend on reno (For that particular property)
Work out the end value
Allow for unexpected cost
Dont forget to pay yourself (At least work out minimum wage for yourself)

After all above.

Look for property that are renovated and re-sell value for them

This will give you some direction for what to look for.

feel free to PM me if you need any help!
 
You won't find a house in newi with that budget. If you do the house will prob fall down when you open the door lol. Goodluck with it all!
 
you may get something in Windale at that price...but be aware the clientele of the area do have a reputation (that said, plenty of nice people there)
 
If you're savvy, you could also pick up something in Telarah for around that price...

But then again, as has been highlighted in recent threads about the Maitland area, a combination of oversupply and a slowdown in coal mining has contributed to rising vacancy rates and stagnant/falling rents. I'd recommend something closer to Newy if you're after gains around that six month period.
 
thanks for the replies everyone

I think i may have misjudged the market a bit
I thought 250k would give me access to the middle range of the market in outlying areas
But i appear to be in the bottom range

I've looked in cheaper suburbs like raymond terrace and parts of kurri kurri/Cessnock
Mainly 2 bedders for that price range

maybe i should start a new thread

"where would you invest with 250k on a house in australia"
 
I'm also not sure how many bedrooms I should be targeting either?

Use ABS sensus data to determine the demographics of an area, is it 2 or 5 people per household, married couples with children or just single parents.

Then look at the number of houses being used/rented, and wether it has 3 or more bedrooms. You can also call real estate agents to guage an interest in housing needs.

Sometimes an area may be full of 2/3 bedroom apartments but the demographics show couples or individuals renting moreso in the last 5 years, in that case you go for 1 bedroom, though your tenants would likely be more transient.

I personally DON'T go for the standard house, in a suburb with 3 bedroom average, I go for 5 bedrooms. The lack of alternatives means I can charge slightly higher rent, though the downside is longer vacancy rates.
 
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