Newcastle - Boom or bust?

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Futurist

Hi Guys,

Anyone read much about Newcastle and whether there's steady growth up there? or whether the growth has been stale in the past year?

I was told there is some mining happening close by - would that mean Newcastle will most likely grow in the coming years? Not sure where abouts this is, i'm guessing north of Newcastle or there abouts? (if u are more intimate with the are, please correct me if i'm wrong).

What about the western'ish suburbs like the ones close to the University area ? Thoughts, opinions?

Doing some of my own research, it looks like Newcastle LGA 'overall' houses (didnt increase in the past year, units increased roughly about 3%).

Would you consider an IP up there ?
 
I guess i'm somewhat gleening ontop of the WA mining boom - and comparing that to Newcastle.

Thinking whether its growth (if there is any) will spread across all the West, North and Southern Newcastle suburbs. And if alot of this will be due to the mining industry up there - plus whether it will get the growth like WA has. I'm guessing not to the same extent though.. lol
 
WA mining towns are reliant on only mining.

Newcastle is not.

It won't go up by as much as a mining town while the boom is going, but when the inevitable must comes along you are still left standing with an average investment in Newc compared to a worthless piece of crapola in the middle of nowhere.
 
Futurist said:
Anyone read much about Newcastle and whether there's steady growth up there? or whether the growth has been stale in the past year?
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This data is readily available, by suburb.

Futurist said:
I was told there is some mining happening close by - would that mean Newcastle will most likely grow in the coming years? Not sure where abouts this is, i'm guessing north of Newcastle or there abouts? (if u are more intimate with the are, please correct me if i'm wrong).
Click to expand...
You can do a google search on mining in the Hunter Valley and you'll see.

Futurist said:
What about the western'ish suburbs like the ones close to the University area ? Thoughts, opinions?
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This is student accom. Great for yield, CG steady but not a stand-out.

Futurist said:
Doing some of my own research, it looks like Newcastle LGA 'overall' houses (didnt increase in the past year, units increased roughly about 3%).
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Averaging all the high CG with all the low CG suburbs as an LGA overall report does is a waste of time.

Futurist said:
Would you consider an IP up there ?
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We buy plenty up there for clients and family :)

As JWR said, Maitland is a great option right now. (not so much Cessnock IMO). Greta where the new F3 Hunter Expressway pops out, is close to infrastructure and closer to the mining than say Newcastle.
 
Not to stir up debate as we did that on another thread - but I like Cessnock because nobody else does and it gets left behind.

You would need to buy at a 20% discount in Cessnock compared to Maitland to be tempted, but I think its a winner.

Maitland is superior for obvious geographical and industry reasons.
 
ali said:
There is a lot of developable land around Maitland, there isn't around Newcastle.

Cheers, Ali.
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That's true - and why your better of, IMO, around East Maitland and other places than Maitland itself....and stay away from the flood affected areas.....

That's not to say that Newy is not good - it is. But some suburbs have gone a bit flat while others have gone really well (as you get in all markets)
 
Buying in Birmingham Gardens Newcastle

Hi I am considering buying in Birmingham Gardens, Vale st, next to the Main Road? Do you know if the traffic noise is too much there during the week? The inspection was on Saturday, may be the traffic was less? We are living out of Newcsatle, so not in a position to go back and forth in a car to check for the noise. Do you have any comment on the area?
Thanks
MKP



We buy plenty up there for clients and family :)

As JWR said, Maitland is a great option right now. (not so much Cessnock IMO). Greta where the new F3 Hunter Expressway pops out, is close to infrastructure and closer to the mining than say Newcastle.[/QUOTE]
 
MKP said:
Hi I am considering buying in Birmingham Gardens, Vale st, next to the Main Road?
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It depends whereabouts in Vale Rd you are buying. A lot of properties backing the Main Rd are elevated and so the traffic is a long way below them. Additionally, many properties have screening trees or plants at their back boundary. However, there is ultimately no way of escaping the continual traffic hum in the background.

MKP said:
Do you know if the traffic noise is too much there during the week?
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There are quite heavy traffic flows - and at 90+kph.

MKP said:
Do you have any comment on the area?
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When we buy there, we're primarily buying for clients seeking student accom.

Many students also like the fact that they can take a short-cut and walk over the overpass at the end of Vale Rd that leads into the back of the University.
 
Propertunity said:
..When we buy there, we're primarily buying for clients seeking student accom.
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What is their strategy in specifically looking for student accomodation?

This may be stereotypical but most would believe that student accom residents may not look after the property as good as u hope, compared to say a business couple or something? Maybe it just depends on who u get, and what they are like etc.

Would the resale value of the property being primarily student accom appeal to investors down the track?

One positive I can think of is that the rental vacancy might be low seeing as the uni is always actively looking for students each semester..
 
We are buying for family use while studying + rent spare rooms out to help with repayment; so its not a pure IP, and we only factor in 42 weeks rent/year + 10% rent for utility costs. So we know it is not a profitable venture. We are basically buying the convenience of being near Uni (with a high price too). That stage in life...
MKP
 
I'm a big fan of Newcastle as many know ... and just settled on two more IP's last week.

I know exactly what you mean re buying something for study - if you can afford to do so, and rent out the spare rooms, it wouldn't cost as much as having to pay for your kids to rent themselves.

I almost bought on the main road, around the corner from Vale street last year. I dithered and missed out. Would have been a great buy. The traffic noise during the week was nothing really and I found the property very quiet - the houses are up a huge embankment which muffles the sound.

Just - whatever you buy, make sure it's either walking distance or near direct transport to the uni and shops.
 
lizzie said:
.... re buying something for study - if you can afford to do so, and rent out the spare rooms, it wouldn't cost as much as having to pay for your kids to rent themselves.
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We had a client recently who did exactly that. 3 x kids @ Uni in 3 different locations spending $150pw per child = $450pw = $2K pm. His words to me were "I can pay off another house for that" - which he's now doing. :)
 
Newcastle just always seems like this place to me that is in this perpetual state of "has potential" but never reaches it. My place did well (doubled) there in the main 2000-2003 property boom and ever since then, it's only gone up a bit over time. Plus the yields are miserable (apart from student accomm which has its other drawbacks and overheads).

I would say Newcastle is a good laid back place to live, but not so much for investment.
 
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