Illawarra region for CG

[menty]

Iv been looking at a few properties around shellharbour and oak flats which are close to the beach/water. The marina is due to be completed also

What's everyone's thoughts on the region. There's been a few new developments around shell cove and there's even a sign for shell heights also now! Will there be too much supply ?

I do know that prices have risen already somewhat, but will the ripple effect from Sydney reach the Illawarra or has it passed ?

 

[jpcashflow]

Hello,

Even though i am from Melbourne, most of my family is from the area you are looking at.

My cousin just bought a place in the area for a whopping $500,000.
before I did her loan i asked her some questions and this is what she said:

1) How are opens like? Opens have been crazy in the area and it has taken her a few months to buy a home in the area.
2) Are you looking to invest or to live in: She personally wanted to live in the area and the first home buyers are targeting that market with investors.
3) What do you think of the prices in the area? She has said that price has become irrelevant (to a Degree) because she wanted to live there as a life style choice.

My opinion: The market has peaked in the area but it does mean the area cant grow any more... so i think there is still a bit of growth to go in the area

 

[woztrac]

I have been looking at this area also. Seems to be a lot of space around down there. There is also this not far away too.
http://www.calderwoodvalley.com.au/

 

[womble66]

My cousin just bought a place in the area for a whopping $500,000.
QUOTE]

Unfortunately nowadays $500K for a house is not considered "whopping" for the area in general as you will find it hard to buy new land for under $300K and in Shellharbour it will be closer to $400K.

Not many houses in the whole area under $300K and any less than $400K are usually lower quality areas and therefore less desirable suburbs. Went to an auction last week and a house went for $332K and was either a bulldozer job or needed $100+ spent on it and then it is still going to be in "Bezerkley" (PC 2506).

My son is about to list his house and paid $280K less than 5 years ago and looking at $400K+ with little spent on it.

I think the flow down of the "hot" market from Sydney has definitely arrived in the Illawarra especially in the last 2 years since I purchased my house for $438K which based on recently sales in the same suburb for the same/similar house/land would be push $600K today no problems. Worst houses in the suburb are now bring mid $400's which is just ridiculous.

 

[dolby]

My cousin just bought a place in the area for a whopping $500,000.
QUOTE]

Unfortunately nowadays $500K for a house is not considered "whopping" for the area in general as you will find it hard to buy new land for under $300K and in Shellharbour it will be closer to $400K.

Not many houses in the whole area under $300K and any less than $400K are usually lower quality areas and therefore less desirable suburbs. Went to an auction last week and a house went for $332K and was either a bulldozer job or needed $100+ spent on it and then it is still going to be in "Bezerkley" (PC 2506).

My son is about to list his house and paid $280K less than 5 years ago and looking at $400K+ with little spent on it.

I think the flow down of the "hot" market from Sydney has definitely arrived in the Illawarra especially in the last 2 years since I purchased my house for $438K which based on recently sales in the same suburb for the same/similar house/land would be push $600K today no problems. Worst houses in the suburb are now bring mid $400's which is just ridiculous.

Whats your general thoughts on albion park?

Is it a low socio-economic area?

 

[sash]

Have one in Barrack Heights (Shellharbour area) bought for 241k in 2011...now around the 400k mark and climbing.

 

[womble66]

Whats your general thoughts on albion park?
Is it a low socio-economic area?

Albion Park (differing from Albion Park Rail) is mainly OK with the older parts closer to the main road probably cheaper than a lot of the newer areas. This is where the majority of local land releases and development happened in the 1980's/1990's

I would say it's not a "low socio-economic" area as its doesn't have a vast estate of DOH properties but like many areas you will get pockets of "bad" within a good area.

This is close to where the "Calderwood" development above is located so a mass release of smaller blocks further from the CBD may have a positive impact on larger older places closer to town.

As a local I wouldn't live out that way but that because I come from north of the lake and that just seems to far out and too much $$$$ for what use to be cow paddocks when I was growing up.

 

[knightm]

Iv been looking at a few properties around shellharbour and oak flats which are close to the beach/water. The marina is due to be completed also

What's everyone's thoughts on the region. There's been a few new developments around shell cove and there's even a sign for shell heights also now! Will there be too much supply ?

I do know that prices have risen already somewhat, but will the ripple effect from Sydney reach the Illawarra or has it passed ?

The growth is real

The ripple is well and truly in force. I am competing with growing number of sydney investors for every client purchase. I think people underestimate the ripple. The best transactions I am doing now are either off market completely or getting in early so we have something under contract by the time it hits the internet.

 

[chilliblue]

Matt is right.

We attended an off market inspection for the agents "on book clients" during the Easter break and there were 10 groups present.

Out of the 10 groups 8 offers made on the spot.

Property was sold over asking and never was advertised.

Sounds like a hot market to me.

 

[ellejay]

Agreed. Matt helped me to fight my way in to that market but it's definitely hot. Huge kudos to Matt for his networks and skill as I doubt I could have purchased so well without him.

 

[womble66]

Sounds like a hot market to me.

Hope so

My son is about to list next week and is hoping for a quick sale so he can move on as he has his finances sorted but decided he needed to sell first to release equity so he was in the best position to secure a property in the same market rather than have a chain (simultaneous settlement).

Only time will tell but I hope it works out as they are moving home till they buy again

 

[ej89]

Hope so

My son is about to list next week and is hoping for a quick sale so he can move on as he has his finances sorted but decided he needed to sell first to release equity so he was in the best position to secure a property in the same market rather than have a chain (simultaneous settlement).

Only time will tell but I hope it works out as they are moving home till they buy again

What if he has to wait 6 months or has to pay too much to get a place? I wouldve thought it'd be better to use the equity to purchase then sell the current house?

 

[womble66]

What if he has to wait 6 months or has to pay too much to get a place? I wouldve thought it'd be better to use the equity to purchase then sell the current house?

But what if he couldn't sell in an acceptable timeframe or didn't get as much as he thought for his current house and still over paid for the new place? They have a limited income so cannot afford to own both properties at the same time.

If it was me that's what I would have done but my income is higher and have a bit more equity and experience but they are not me or you and just wanted to a bit cautious and know where the "goal post" are and then make the next move.

With his +20% deposit, the ability to have a short settlement period, approved finance for well above his target purchase price and the ability to go with zero conditions if required he feels this places him in a strong position to secure a new property in a very competitive market.

As for waiting 6 months, I hope not but he at least has 6 months interest and rent free so has a chance to look and find the right place.

 

[knightm]

But what if he couldn't sell in an acceptable timeframe or didn't get as much as he thought for his current house and still over paid for the new place? They have a limited income so cannot afford to own both properties at the same time.

If it was me that's what I would have done but my income is higher and have a bit more equity and experience but they are not me or you and just wanted to a bit cautious and know where the "goal post" are and then make the next move.

With his +20% deposit, the ability to have a short settlement period, approved finance for well above his target purchase price and the ability to go with zero conditions if required he feels this places him in a strong position to secure a new property in a very competitive market.

As for waiting 6 months, I hope not but he at least has 6 months interest and rent free so has a chance to look and find the right place.

I agree D he will be fine if he has strong purchasing credentials, large deposit and fast settlement terms he will be ahead of the pack still. Your process described above is lower risk than trying to hold 2 properties. If he is decisive he should find something in less than 6 months.

 

[womble66]

I agree D he will be fine if he has strong purchasing credentials, large deposit and fast settlement terms he will be ahead of the pack still. Your process described above is lower risk than trying to hold 2 properties. If he is decisive he should find something in less than 6 months.

Thanks Matt. Best offer at COB today was in that range of "above expectations" that I indicated offline and confirms the hot market in the Gong no matter where and what is for sale. Now its up to the REA to close the deal hopefully early next week.

 

[bob shovel]

Wow sounds like the area is getting a move on. are there good rental returns down there at the moment (I'll need to start researching properly too)? And is there a good amount of work and infrastructure etc going ahead? The south coast hasn't been on the radar! We would like to end up down there one day too.

What are the target areas, is nowra still a key area? Any other up and comers? It's been a few years since being down there, they were working on the highway through berry, is all that work down or additional stages going ahead?

 

[knightm]

Wow sounds like the area is getting a move on. are there good rental returns down there at the moment (I'll need to start researching properly too)? And is there a good amount of work and infrastructure etc going ahead? The south coast hasn't been on the radar! We would like to end up down there one day too.

What are the target areas, is nowra still a key area? Any other up and comers? It's been a few years since being down there, they were working on the highway through berry, is all that work down or additional stages going ahead?

1 - Yes it is definitely getting a move on
2 - Rental returns are better than Sydney but not spectacular, because on the whole incomes aren't massive.
3 - Yes there is some infrastructure
4 - It is on the radar of some because SOM and DOM are falling.
5 - You should take steps towards where you want to end up. (ie work towards your goals)
6 - There are a few areas, Nowra is one of them.
7 - Berry roadworks continue. Locals are talking up the commuting options to Wollongong and Sydney when finished. I would have no desire to try this but any improvement will cut travel time and increase the zone of influence of northern populations.

 

[bob shovel]

Thanks Matt! And slick mobile website too!

We have our goals planned out, need refining but ready in the next couple of months for finance tweeking and aiming to have 3 by the end of next year as first step

 

[ellejay]

So my ip was listed online for rent at 4pm yesterday. By 8am this morning agent rings to say 6 enquiries and one offering well over asking price. Did I mention I love Matt Knight

 

[Jins13]

So my ip was listed online for rent at 4pm yesterday. By 8am this morning agent rings to say 6 enquiries and one offering well over asking price. Did I mention I love Matt Knight

A friend today told me that he had professional photos taken of his house in the area and before it was posted, his house was rented. I think he still had to pay for the photos.