Newcastle but where ?

[Ellis]

Shortland?

Any thoughts on Shortland? Bit further out but near the uni and seems to have good yield potential.

I'm also looking at Mayfield, I think there is still potential there for both CG and CF.

 

[tomlemke]

Any thoughts on Shortland? Bit further out but near the uni and seems to have good yield potential.

I'm also looking at Mayfield, I think there is still potential there for both CG and CF.

Have a look how many rentals there are in the area atm.
I personally wouldn't touch it.
there is a bucket load of townhouses getting built plus the 900 units that just got built on the uni campus.

I've got a few emails from positive real-estate ( Sam Saggers ) pushing Shortland obviously has vested interest with some of the developers out their.

I bought in mayfield in 2012 and have had around 100k of growth since then
its still got a stigma but theres a lot of trendy coffee shops and plenty of houses getting renovated.
I have had 3 tenants in 3 years and the quality hasn't been great , i had to drop the rent $20 with the last lease agreement 3/3/15.
There was around 40 3bd houses on the market so pretty happy to get someone
house was one of the better places on the market luckily.

Most of the neighbouring suburbs closer to the city are at least 100k more so i defiantly see more c.g potential.

http://www.theherald.com.au/story/2585451/mayfield-from-rough-suburb-to-rough-diamond/

 

[Xjas]

I have had 3 tenants in 3 years and the quality hasn't been great , i had to drop the rent $20 with the last lease agreement 3/3/15.

I've noticed an increasing number of vacancies in Mayfield, 2 years ago there were around 40 houses listed for rent, last time I check there was around 80.
We had to drop the rent slightly on our Mayfield property to get someone in last time it was vacant.

 

[Ellis]

That's really interesting thanks for the info.
Would you say to avoid Mayfield because it's becoming harder to rent out or are you seeing CG potential?

As you say, surrounding suburbs are a fair bit higher and it's perhaps losing it's industrial stigma.

 

[lawmich]

I'm also looking at newy and central coast. the suburbs close to newy seem to have smaller blocks of land, such as those in Mayfield etc. I thought getting a sizeable block in CC allows me to put in a granny flat. having said that, looking at the plans for newy excites me about its potential.

 

[Macca]

If considering Newcastle you may need to factor in the change of Council, now Labour/Green and the various promises of the State Government parties.

With a state election this weekend things in Ncle may change, whether for better or worse depends on your political views.

Both have made various promises and the contentious issue of the rail line truncation may well be back on the agenda if Labour win.

 

[Xjas]

That's really interesting thanks for the info.
Would you say to avoid Mayfield because it's becoming harder to rent out or are you seeing CG potential?

As you say, surrounding suburbs are a fair bit higher and it's perhaps losing it's industrial stigma.

Going off this months API magazine Mayfield's median is 70k behind Georgetown, 100k behind Lambton and 150k behind Adamstown so I think there is still room for CG in the long term considering its proximity to the city centre but its 3.8% vacancy rate is one of the highest in Newcastle ATM so short time holding costs may be high.

 

[tomlemke]

I've noticed an increasing number of vacancies in Mayfield, 2 years ago there were around 40 houses listed for rent, last time I check there was around 80.
We had to drop the rent slightly on our Mayfield property to get someone in last time it was vacant.

How long have you held this place for? have you had decent gains?
the place i bought for 300k in 2012 last traded for 267k in 2003.

 

[Xjas]

How long have you held this place for? have you had decent gains?

Only had it for about 2 years, I'm guessing I've had some gains but no idea how much as I haven't had it valued since purchase.

 

[Ellis]

Hi guys,

went up to Newcastle (from Sydney) on the weekend.
Had a look at a whole bunch of suburbs and numbers just seem to stack up best in Shortland. I'm a bit concerned about developments being good or bad for the area and am a bit confused at why some places go for $100k more than others.

Does anyone have info on what developments are happening in Newcastle after the election?

Would love to have more info on this area - i'm keen!

 

[lawmich]

Coalition won.

 

[Theodore]

I would most definitely stay away from any suburb near the UNI
a lot of people i know CAN NOT lease their IP in those areas !!

One person i know has an 8 bedroom uni house in the area and has only
had 3 people in their for months !

Hi guys

went up to Newcastle (from Sydney) on the weekend.
Had a look at a whole bunch of suburbs and numbers just seem to stack up best in Shortland. I'm a bit concerned about developments being good or bad for the area and am a bit confused at why some places go for $100k more than others.

Does anyone have info on what developments are happening in Newcastle after the election?

Would love to have more info on this area - i'm keen!

 

[Simon]

I sold my 5 bedder near the uni. Settled just before uni started.

I gave the buyer some keys so he could show it before settlement. He rented all five rooms in the first weekend.

I suspect your friend might have other factors at play.

 

[R377]

Mayfield for example has done 16% CG averaged year-on-year for the last 15 years.

Just my 2c worth.

Mayfield did 11%pa from 2000-2010 and only 4%pa from 2005-2015 so I would love to know where you got your 16%p.a from ?

Hamilton did 8%pa from 2000-2010 and 4% from 05-15