Newcastle

[Pete Wargent]

I'm currently shifting to a SMSF and looking to buy an IP very soon.

Being an ex-Pom my super balance is measly so am only looking at spending around $300k on a unit.

Most of my IP's are in Sydney but $300k would probably see me looking somewhere west of Penrith if I was looking there.

Any thoughts on Newcastle? I like the look of the place but unsure about future growth prospects.

Any sensible comments warmly welcomed.

Thanks,
Pete

http://petewargent.blogspot.com/

 

[Bon]

Mayfield perhaps if there's any units around there. I know a lot of FHOB are looking to buy around Mayfield and it should eventually get cleaned up from all the druggos, etc.

Other suburbs nearby - Georgetown, Carrington, Islington, Waratah, Hamilton.

Have a look at Broadmeadow as well.

The Newcastle end of town is kind of dead IMO. Stay away from there and stick nearby Hamilton.

Try Adamstown Heights if you can get a unit - 5mins to the beach, 5mins to Westfield, close to shops & schools - http://www.realestate.com.au/property-apartment-nsw-adamstown+heights-108536146

My brother just bought a 2 bedroom house in Adamstown Heights for $350k on a 580m block of land, so I wouldn't be too willing to fork out $320k for a 2 bedroom apartment.

 

[Bon]

Smack back in the middle of Mayfield - could walk to the shops and all.

http://www.realestate.com.au/property-unit-nsw-mayfield-107362422

 

[Bon]

2bed house on a 370m block of land for $270k.

http://www.realestate.com.au/property-house-nsw-mayfield-108349741

 

[Bon]

$320k on 491m block of land.

http://www.realestate.com.au/property-house-nsw-mayfield-108809231

 

[Propertunity]

For units, I agree with Bon - Adamstown Hts. You could even go for an older unit in Charlestown - which has $M's being pumped into it by all sorts - Govt & Private.

If you want a house on land - also I agree with Bon. Mayfield, East Mayfield, Islington, Tighes Hill, Carrington, Maryville. You won't get into Hamilton for your budget.

 

[Bon]

Hey Propertyunity,

2 bed house in Adamstown Heights on a 580m block of land for $350k in Montrose Ave.... good deal you think?

 

[Propertunity]

Hey Propertunity,

2 bed house in Adamstown Heights on a 580m block of land for $350k in Montrose Ave.... good deal you think?

There are no 580m2 blocks in Montrose. Which street number? and I will give you my 2c

 

[Bon]

Haha, PMed you the # mate.

 

[JWR]

Hi Prop,

Do you think its better value to spend 350k (3bdr, 500sqm) in the heart of Newc or buy the same type of house for only $250k 10km either south, west or north?

 

[Bon]

I just double checked, the land is 545m... does that make a difference?

 

[Bon]

Hi Prop,

Do you think its better value to spend 350k (3bdr, 500sqm) in the heart of Newc or buy the same type of house for only $250k 10km either south, west or north?

I'm not Prop, but 10km is a fair distance in Newcastle! But, it's only a 10-15min drive since it doesn't have anywhere near the traffic Sydney does.

 

[Propertunity]

OK - it is 556.4m2

Worth $355-365K IMO - so he did well to buy at the lower end of the range. Of course I could probably have bought it cheaper LOL

 

[Bon]

How do you know what it is and what makes you so sure?

Bank came back with a valuation of $385k.

 

[Propertunity]

Hi Prop,
Do you think its better value to spend 350k (3bdr, 500sqm) in the heart of Newc or buy the same type of house for only $250k 10km either south, west or north?

$350K within 5km of the CBD would be my personal choice. But if you only have $250K it is better to buy something than nothing - at least you're in the game. Actually if you can stretch to $295K you can still get a renovator in Mayfield.

 

[Propertunity]

How do you know what it is and what makes you so sure?

I have mapping software overlays.

Bank came back with a valuation of $385k.

Good news! Valuers are allowed a 5% margin of error - so that is still within tolerance.

 

[Bon]

Cool, thanks mate!

 

[JWR]

My thinking is that its only a 10min train commute - so probably more chance for growth over time with urban sprawl.

Or even paying 150-170k in Maitland/Cessnock - that's not very far either - would one of those in each location be a better investment than $350k in Newcastle.

Does Cessnock even have a train station though? If it doesn't but soon gets one that would improve values (and it must be getting one soon enough right?)

 

[Propertunity]

My thinking is that its only a 10min train commute - so probably more chance for growth over time with urban sprawl.

You're not qualified to think - but you know that right? What else would you recommend with your vast knowledge?

Or even paying 150-170k in Maitland/Cessnock - that's not very far either - would one of those in each location be a better investment than $350k in Newcastle.

Nope, probably not.

Does Cessnock even have a train station though? If it doesn't but soon gets one that would improve values (and it must be getting one soon enough right?)

Sure, why not?

 

[Bon]

Or even paying 150-170k in Maitland/Cessnock - that's not very far either - would one of those in each location be a better investment than $350k in Newcastle.

WTF bro! You need to come up here and drive from Cessnock to Newcastle and tell me how close it is

Not many people catch trains in Newcastle as far as I'm aware.... I don't know of anybody who catches a train. Everything is close enough that you just drive... and parking is not an issue like Sydney.

Gotta get out of the rat race down there and come up here and check it out for yourself.