Maitland

[RedCat]

Thinking about East Maitland as an IP but don't know the area too well. I'm time poor and need to "set and forget". I can't do renovating but am open to something rentable now and then reno in 5+ years.

I have no idea whether units or houses are a better buy there. Assume it's the old unit gives better yield but house gives better CG story, except houses concern me from a maintenance point of view. Having said that, CG is more important than yield.

Being regional I don't want to spend more than $300K on something ideally. Thoughts?

 

[Propertunity]

Thinking about East Maitland as an IP but don't know the area too well.

It is one of the areas we cover for clients, so I know the area reasonably well.

I have no idea whether units or houses are a better buy there. Assume it's the old unit gives better yield but house gives better CG story,

If you see the chart of last 15 year CG, you'll see that houses have outperformed units CG-wise over that time.

Volume-wise, houses normally sell at the rate of about 200 per year while unit sales are around 40-50 per year. So the preference for people in the area as a whole is for houses on land (it is the 'country' afterall )

...except houses concern me from a maintenance point of view. Having said that, CG is more important than yield.

Historically, as I've said, house have done better than units on the CG front. Maintenance-wise, units have strata fees and levies, which is a forced savings plan if you like, for maintenance. House owners have maintenance issues too (as with units) BUT generally tend not to plan for them. So of the HWS breaks then they have to find $1,200 cash in a hurry. I think it is 6 of one and 1/2 dozen of the other in this respect.

Being regional I don't want to spend more than $300K on something ideally. Thoughts?

Median house price is around $330K, median unit price is around $280K. You should be able to get something suitable without too much trouble - except from those pesky FHB's that I had to fend off with a pointy stick lately (they are very active in the under $400K space at present, until their stamp duty concessions are removed 1/1/12 in NSW for existing stock).

 

[sahi]

It is one of the areas we cover for clients, so I know the area reasonably well.

Hi Alan,

Do you know if Maitland is in the high flood risk area?

Cheers,
Sahi

 

[Propertunity]

Hi Alan,
Do you know if Maitland is in the high flood risk area?
Cheers,
Sahi

Thanks for that Sahi. I meant to make mention of that to RedCat and then promptly forgot while I got distracted rabbiting on about CG rates.

Yes, parts of Maitland flood, other parts don't, some only get their toes wet.

Since the floods of 2007, when the Pasha Bulka washed up onto Nobby's Beach, councils have revised their flood mapping and the 149 certificates that they produce - included in every contract of sale.

In Newcastle alone, about 1/3 of all properties have some kind of flood affectation notice on their 149 certificates. To be fair many of these are located in flood 'fringe' areas. On further enquiry with the council engineers who produce the mappings, many of these properties have never been wet. One particular property we were buying for a client was in this category and was so rated, as 'fringe', but only because water came to the end of the street it was in.

 

[eXc]

Yes, parts of Maitland flood, other parts don't, some only get their toes wet.

Except in 1955, then it was only about 15 foot deep water haha

 

[Propertunity]

Except in 1955, then it was only about 15 foot deep water haha

I wasn't just talking about the town itself, but the surrounding area/s.....evil

 

[RedCat]

I will definitely wait until after the FHB's grant is done. I dealt with a flood affected area when I bought in Auchenflower and insured with Suncorp as a result. Good peace of mind during those Brisbane floods!

 

[sash]

I bought a ex commission house in a good street for 208k in June.

It took aobut 3.5 months to reno and 25k later I have rented it for 340pw.

It is in Tenambit.....it is high on hill so not flood affected.

Look at Tenambit and Rutherford...plenty of houses for 230-270k with a quick touch-up you can rent them for 310-350pw.

 

[RedCat]

Great in theory and I'm envious, but I can't handle/organise or do a reno due to job/time restrictions.

 

[Jaggannath]

Look at Tenambit and Rutherford...plenty of houses for 230-270k with a quick touch-up you can rent them for 310-350pw.

Alan, I'd love to hear your thoughts on the feasibility of this for value adding, and what kind of properties in this area are available.

At the moment I'm casting around looking for opportunities to assess