Invest in Central Coast (Umina-Ettalong) or Port Stephens (Fingal Bay)???

[meln]

This is my first forum post- have been following the various topics for some weeks now, learnt heaps!, thanks to all of you!.

Our PPOR is in the Hills District in Sydney, we have a positively-geared IP in Goulburn. We had considered selling Goulburn to finance something on the coast, but have re-evaluated this plan after reading various threads...REA fees, SD, etc...

We are keen to invest on the coast, not for holiday rental though. Was wondering what people thoughts are re: Umina vs. Fingal Bay??. Based on our limited research (I say this, as we are amateurs!) it would appear that Umina hasn't peaked yet. It is an hour, door-to-door, from Hills District....and can still pick-up 2-3bed villas just footsteps from the beach from under 300K. Am sure there is still some gentrification yet to occur there too. Fingal Bay is further away and somewhat isolated, but a really beautiful beach and local area. Can pick up 3-4 bed houses for same price range as Umina- still quite close to the beach. Main concern with Fingal would be probable difficulties finding permanent tenants.

Our main goal, is to get something on the coast, put tenant in, then 10+ years on, holiday let it and use it ourselves. Good CG would be good too!.

Would appreciate your thoughts, especially if there is anyone out there who know anything about these 2 areas.

 

[RedPanda]

Hi Meln,

There are other threads here on Central Coast as well. You can go through them . People have varied opinions on Central Coast particularly Umina area. Umina certainly haven't peaked, in fact far from it, it hasn't gone anywhere for quite some time. As Sydney grows and expands, I expect Umina to register more CG than Fingal Bay because it is at commutable distance to Sydney. But Fingal Bay mey be more peaceful for retiring than Umina after 10 years.

Disclaimer: I am currently looking for IP in Umina area.

 

[Propertunity]

Over the last 15 yrs Fingal Bay has shown marginally better CG than Umina Beach.

However, one thing that would bother me is that Fingal Bay only has a sales volume of about 30 homes per year, whereas Umina has nearly 10x that at neary 300 homes sold per year.

Also it takes about 160 days to sell a house in Fingal Bay compared to only 115 days in Umina.

I know which market I'd rather be in (as a risk mitigation strategy) if I had to sell for any unforseen reason.

 

[knightm]

I have bought 3 IPs in Umina Beach in last two months.
Trust me, Umina Beach is the best beach suburb in Australia at the moment.

WP, I asked you in another thread WHY Umina beach is so good for investing but no answer yet. Is it just the price or is there something about it that you are focussing on.
Whilst we would all love to "trust you" the forum is here so we don't need to and can make up our own mind.

 

[evand]

The Woy Woy peninsula (which includes Umina) has gone slightly backwards in price since the peak of 2003.

Where else could you buy a 2br house on about 400 sq, 90 minutes from Australias largestcity and 10 min walk to the beach for for about $290k? That is the bottom of the house market but it shows that there is very little cap growth in the area.

I lived in Umina for 8 years,owned property on the peninsula and follow the property market closely.

 

[vaughan]

Every other house in Umina has as un-approved granny flat out the back, which is why the yields are great.

 

[evand]

Ahhh....very true. Same for Woy Woy and Ettalong.

Every other house in Umina has as un-approved granny flat out the back, which is why the yields are great.

 

[datto]

my opinion Id go Fingal bay.

why? the nelson bay area is a holiday desto and due to the economic climate there are some really cheap properties.

It seems to me that people from sydney have their holiday house there and many have been forced to sell. The economic climate at the moment is not for buying holiday houses.

BUT, when confidence returns the nelson bay area will really pick up. Do your research and you will see how cheap properties are in the nelson bay area. And its a great holiday spot eg fishing, stocton beach, water sports- a real paradise - again my opinion only.

 

[china]

Good economic times

my opinion Id go Fingal bay.

why? the nelson bay area is a holiday desto and due to the economic climate there are some really cheap properties.

It seems to me that people from sydney have their holiday house there and many have been forced to sell. The economic climate at the moment is not for buying holiday houses.

BUT, when confidence returns the nelson bay area will really pick up. Do your research and you will see how cheap properties are in the nelson bay area. And its a great holiday spot eg fishing, stocton beach, water sports- a real paradise - again my opinion only.

People keep talking about current tough economic times. I just don't agree with that. Wages are higher than ever and unemployment is low. House prices have plateaued and interest rates are falling. Restaurants and shops are always full and crowded. So I think that we are actually in the midst of very good economic times

 

[ali]

I live in Port Stephens and have two investment properties on the Central Coast.
Neither area has had great CG since 2004 but both have seen massive rental increases in that time, so there is demand to live in both areas. Depending on what you want in the IP, I would say the Port Stephens area has a lot going for it. There are so many new industries and jobs coming into the area, such as the expansion of areospace industries at Williamtown, expansion of the ports at Kooragang Island, a new massive industrial park at Tomago, and at Heatherbrae. Check out the latest issue of the Port Stephens Examiner, if you can find it online. Granted these jobs are all a 20-30-minute drive from Port Stephens, but there are very few traffic lights and it's an easy commute.
Incomes are fairly high here due to RAAF, Boeing, NSW Fisheries and DIDO mining people who commute to the Hunter Valley.
Anecdotally, people (usually families as that is who I meet) say they can't find a decent place to rent in the area due to high demand. The housing stock in general is newish and brick so good quality.
However, if I was going to buy an IP, I wouldn't chose Fingal as it is just too far to commute to anywhere outside Port Stephens. I would look at Salamander Bay, Corlette, Nelson Bay and Anna Bay/Boat Harbour.

As for the Central Coast, we have had great rental growth and a pick of good tenants (one tenant paid 6 months in advance to secure the property in September). Not sure about CG. I would only buy close to the trainline on the Central Coast as that is where the biggest rental market is.

Hope this helps,
Cheers Ali

 

[datto]

China - interest rates have only just started to come down, and this is one thing that has brought some relief to the family budget.

Mate, everything else has gone through the roof - electricity water public transport fuel healthcare..and it was only just over 12 months ago that the RBA was increasing rates! Consumer confidence is just not there.

Couple the above with the carbon tax and the doom/gloom in europe and USA and the fear that China may slow down (ta ta resources boom) and you can see why an IP on the mid or central coast is not on the cards for many households.

Bad time to buy for many, good time to buy for bargain hunters! As soon as confidence returns then you will see substantial growth..all above is my opinion only.

Excellent points Ali, but correct me if wrong, but Fingal Bay is on say 10 minutes from Corlette and with hardly any traffic shouldnt be too far to commute to Port Stephens?

 

[ali]

Hi Datto, you are right, Fingal isn't far from Nelson Bay but it is still further out than the other suburbs I mentioned (if you need to commute outside Port Stephens for work) and doesn't have a school or shops. Might not appeal to the maximum number of renters, is all.
Cheers Ali

 

[Edge7]

I love visiting Fingal Bay for holidays. Was up there last month for a few days.

It may not have grocery shops but it has a tyre shop which looks really out of place.