A couple of years ago, there was talk about growth in the Hunter valley region with HEZ http://www.hez.com.au/indepth/keyfacts.asp creating jobs and stimulating growth. Does anyone know whether this has had any impact and whether there is potential in investing in properties like in Cessnock where its is close to these developing suburbs?
Investment in Hunter Region
- Thread starter giraffez
- Start date
Sorry but this site doesn't tell me anything about hunter region.
Hi giraffez,
I don't hear anyone mentioning HEZ anymore - not for a couple of years now anyway.
As for Cessnock benefiting, between 2001 & 2006 its population declined by 10%. Not sure what is is now.
The wine industry seems to have its ups and downs from year to year.
House prices in Cessnock have been slow but steady over a number of years. Current median is around $200K
For my money I'd be investing in Newcastle itself - more industry & business to support growth, especially since BHP moved out of town a number of years ago now - its all nice & clean
I don't hear anyone mentioning HEZ anymore - not for a couple of years now anyway.
As for Cessnock benefiting, between 2001 & 2006 its population declined by 10%. Not sure what is is now.
The wine industry seems to have its ups and downs from year to year.
House prices in Cessnock have been slow but steady over a number of years. Current median is around $200K
For my money I'd be investing in Newcastle itself - more industry & business to support growth, especially since BHP moved out of town a number of years ago now - its all nice & clean
Sorry giraffez this site was about a developer/consultant who focused on IP's in the Hunter region, there were/ was some articles regarding why invest in this region.
regards lisag
I was looking in Muswellbrook and was interested for some time. Lots of new housing and some activity going on, commuting distance to the minesites and some decent rental returns. Although I've been put off in the past 6 mths with the economic downturn, and a big drop in mining activity and commodity prices.
I would like to be convinced otherwise, but regional mining towns just seem like too big a risk at the moment...
I would like to be convinced otherwise, but regional mining towns just seem like too big a risk at the moment...
There's mining towns, and towns that have some mining going on.
Mining in the Hunter is just a small part of the economy of these towns. And don't forget, a big part of that mining economy is the power stations, Bayswater and Liddell, which supply 40% of NSW's power.
The Hunter has much more going on than just mining. And it's mostly 'old economy' real stuff going on, not the financial services, banking, insurance, paper shuffling, where the biggest bubble has happened in the cities.
See ya's.
TopCropper,
Curious, have you invested in the Hunter region? Whereabouts? I haven't totally ruled it out, still have my eyes on Muswellbrook, I'm just reluctant. I have been watching several properties and some have been listed for 6mths before coming under offer. It just doesnt seem dynamic enough for my liking, but it does seem afforable and rental yields look good....hence while I am still interested....
Curious, have you invested in the Hunter region? Whereabouts? I haven't totally ruled it out, still have my eyes on Muswellbrook, I'm just reluctant. I have been watching several properties and some have been listed for 6mths before coming under offer. It just doesnt seem dynamic enough for my liking, but it does seem afforable and rental yields look good....hence while I am still interested....
Nope.
Not interested at the moment. I live just north of the Hunter. If I walk to the top of the Liverpool range just near me, I can see the power stations and the coal mines of the Hunter.
See ya's.
Maitland and Muswellbrook look interesting. Still some decent rental yields to be had. Maitland looks like a nicer town, old colonial style housing, etc, plus closer to the HEZ than Muswellbrook. I think the boat has already left with Kurri Kurri and Cessnock, prices have risen and rental yields are now low.
9 months on - Any updates?
Hi,
I'm also interested in the Kurri Kurri/Weston area, as API reports > 10%CG (over last 10 years), ~5.5% RY, Med ~ $200K and 1.3-1.7 %VR. Some properties even have a reasonable land content. Yes, I know Newcastle is the place to be and we have just bought our first IP in Mayfield (via SMSF, StGeorge and a bit of a headache too) and now want to tap into our equity from our PPOR and buy some more IPs. Planning on buying at least another IP in Newcastle area, but from my readings on this forum, diversification seems to be the key, so I thought about heading either out of town or down south, i.e. Hobart/Lanceston. Any suggestions?
Thanks
Elfsmum
Hi,
I'm also interested in the Kurri Kurri/Weston area, as API reports > 10%CG (over last 10 years), ~5.5% RY, Med ~ $200K and 1.3-1.7 %VR. Some properties even have a reasonable land content. Yes, I know Newcastle is the place to be and we have just bought our first IP in Mayfield (via SMSF, StGeorge and a bit of a headache too) and now want to tap into our equity from our PPOR and buy some more IPs. Planning on buying at least another IP in Newcastle area, but from my readings on this forum, diversification seems to be the key, so I thought about heading either out of town or down south, i.e. Hobart/Lanceston. Any suggestions?
Thanks
Elfsmum
Some of those smaller towns on the outskirts of Newcastle have a lot of potential to grow as Sydney becomes rapidly more populated and expensive to buy or rent. We are looking at purchasing IP's around this area in the lower to mid price range for rental returns. After a lot of research I'm pretty sure Newcastle and surrounding towns will offer some great deals for investors. There are also a lot of new developments going on & planned as well as companies expanding and setting up new business in this area which is a good sign.
Be very careful of reading stats like this. If you look at the chart you will see from 1991 to 2000 CG was virtually flat-lining for 10 years. Of the CG from 2000 to 2010 you will see most of the growth happened in 2000 - 2004. This is often very typical of small country towns.
Heading out of town is not really diversification.
Heading to Tassie might be - but I can't help you with selection there.Attachments
Thanks for that reality check, Propertunity - there's always more than meets the eye. So what is your definition of true diversification - buying houses/apartments/commercial and/or different areas, i.e. Newcastle/Sydney? Would really like something with a reasonable RY, i.e. > 6% in the Newcastle area, and I know uni accommodation or add a 'granny flat' are options but is there anything that will achieve this as is (or after a small reno)?
You're welcome. Look you can buy in country towns if you want. You just have to understand that CG comes in big lumps followed by many years of going nowhere.
My definition would be different locations certainly. Interstate more so than in 2 cities very close to each other like SYD/NTL. Resi / com. Plus different asset classes like shares, etc. I find it mildy amusing when people (not you
) say that they have diversified, when they hold all their wealth in resi property (albeit scattered over all states of Australia). So IMO you need to diversify away from political risk - state government housing policy, land tax etc. Diversify away from industry / job / tenant risk by investing in different cities with different industry bases. Diversify away from the economic cycle - resi and com are on different cycles as are shares & cash etc.....and I want world peace
Wow, I see you've been listening. Look I never say never, but to get 6% yield you need to be purchasing @ say $240K and renting for $280pw - possible?? Let us know how you get on.
