Newcastle

[Ideo]

Just went for another drive around.

Looks like I'll be moving there and will probably rent for 6 months before buying a PPR.

I like the feel of Carrington at the moment. It's got some rough spots and some issues but it has some excellent pubs and a lot of young professionals moving in. I can see the potential there, and as it is will be ppr I'm not fussed about rental returns, but I think growth is good.

Hamilton is probably my other option at the moment. I'm amazed at how cheap it is.

 

[Simon]

Hamilton is probably my other option at the moment. I'm amazed at how cheap it is.

You are obviously from Sydney.

I love Hamilton, been here 12 months now and enjoying it more and more.

Cheers,

 

[Simon]

Not the switched on locals

Don't forget the new law courts

The Uni is building a new Law and Commerce faculty down by Honeysuckle. That will bring lots of people into town each day.

 

[Ideo]

You are obviously from Sydney.

I love Hamilton, been here 12 months now and enjoying it more and more.

Cheers,

Central Coast originally, but Sydney now.

Even compared to the Coast Newcastle offers incredible value for money.

 

[Propertunity]

I like the feel of Carrington at the moment. It's got some rough spots and some issues but it has some excellent pubs and a lot of young professionals moving in.

Try to buy in a "wide street" like say Young St as opposed to "narrow sreet", like say Scott St.
You do pay a premium for wide street but for the parking it is worth it IMO.

I can see the potential there, and as it is will be ppr I'm not fussed about rental returns, but I think growth is good.

The growth has been good.

Hamilton is probably my other option at the moment. I'm amazed at how cheap it is.

Hamilton is probably the most expensive of the near CBD suburbs on the western side.

Beaumont St - cafe & coffee houses is a big drawcard.
Be careful when you do your checks, as many parts of Hamilton flood (quite badly).
Interestingly enough, Beaumont St suffered a lot of damamge in the Newcastle earthquake but you'd never know that now it is all rebuilt.

 

[ali]

Just went for another drive around.

Looks like I'll be moving there and will probably rent for 6 months before buying a PPR.

I like the feel of Carrington at the moment. It's got some rough spots and some issues but it has some excellent pubs and a lot of young professionals moving in. I can see the potential there, and as it is will be ppr I'm not fussed about rental returns, but I think growth is good.

Hamilton is probably my other option at the moment. I'm amazed at how cheap it is.

Carrington is pretty cool but very low lying and residential streets have been inundated at high tide before. That has always turned me off buying there. Especially if you think sea levels may rise in the future.
Cheers, Ali

 

[lizzie]

Have to remember that, in Carrington, they still have the grain silos and loaders for the bulk shipping carriers ... can be heavy truck traffic and wheat dust throughout the suburb during harvest times.

However, considering I haven't been over to Carrington for several years - what do I know ... perhaps I should go for a look.

I really like Hamilton and Adamstown - for two different reasons.

 

[HomeBuyAU]

Newcastle seems to be quite flat generally in the city areas. I'm not sure how a flood would workout there? Maybe places like Adamstown, some parts of Waratah and Kotara areas might be good with some views over the city but still in reach of everything.

 

[Kenny]

This is a great thread. Thanks to the locals posting who have sparked my interest in this area.

A map of potential flood areas in the Newcastle flood plain area can be found here but the detail is vague;

http://www.newcastle.nsw.gov.au/environment/waterways_and_flooding/living_with_floods

Does anyone have a more precise map of flood prone areas?

One can also check if a property is classed as flood affected by getting a Flood Information Certificate online or here;

Customer Enquiry Centre,
City Administration Centre,
282 King Street, Newcastle
Ph: 02 4974 2030

Also, there is a good presentation on the website from 2011 that discusses their management strategy. PDF here;

http://www.newcastle.nsw.gov.au/__data/assets/pdf_file/0020/116426/0375_NCC_FPRMP_Stage_2_-_Comms_Strategy_Stage_3_-_Community_Forum_Presentation_V2_2010_04_16.pdf

Regards,

Kenny

PS. One interesting slide in the pdf;

Throsby/Cottage Creeks Flash Flooding – Hot Spots

• 
  •Morgan Street, Merewether
  •Mitchell, Barr, Frederick, Patrick, Merewether Streets, Merewether
  •Glebe Street, The Junction
  •Union Street near National Park Ovals
  •Corona Street, Hamilton East
  •Corlette & Bruce Streets, Cooks Hill
  •Darling Street, Hamilton South
  •Steel & Chaucer Streets, Hamilton
  •Tudor Street West, Hamilton
  •Lindsay & Samdon Streets, Hamilton
  •Railway & Station Streets, Wickham
  •Carrington
  •Elizabeth Street, Tighes Hill
  •McMichael Street, Maryville
  •Lewis & O’Hara Streets, The Avenue, Islington
  •Hamilton North
  •Wyong Road, New Lambton
  •Monash & Marina Avenues, New Lambton
  •St. James Road, New Lambton

 

[ansaurieng]

Hi All,

Great threads with lots of info. What do you all think of Jesmond. It is close to Newcastle Uni and the Stockland shopping.


Cheers

 

[Simon]

Jesmond is great for renting. Lots of students.

However, I wouldn't live there myself. Nor would it be my 1st choice for capital growth.

Cheaper than suburbs to the east though.

 

[Propertunity]

A map of potential flood areas in the Newcastle flood plain area can be found here but the detail is vague;

The council is still in the process of upgrading their maps since the big 2007 floods when the Pasha Bulka was washed up onto Nobbys Beach.

One can also check if a property is classed as flood affected by getting a Flood Information Certificate online or here;

Customer Enquiry Centre,
City Administration Centre,
282 King Street, Newcastle
Ph: 02 4974 2030

DON'T put too much faith in the flood certificates they offer to sell you on an individual property. Why?
I had a phone conversation with the council officer who does up the flood certificates. What came out on the A4 certificate a few days later was a pale imititaion of the information provided to me over the phone.

Also I see Carrington mentioned in the flood areas. Since the redevelopment of the harbour foreshore, lots of drains & canals have been built.....and although Carro got its toes wet in the floods, at the same time, people in some parts of Hamilton were chest deep in flood waters.

Another property I purchased for a client in Hamilton had a flood notification on the 149 certificate. When I made enquiries of the council, I was advised that at the flood peak, water had only come to the end of the street but no-where onto this particular property at all!

The bottom line is, that you need to talk to the council certainly, but also neighbours in the street.

 

[ansaurieng]

Jesmond is great for renting. Lots of students.

However, I wouldn't live there myself. Nor would it be my 1st choice for capital growth.

Cheaper than suburbs to the east though.

Thanks Simon,

why wouldn't you live in Jesmond, is it because plently of students or something else? As for plenty of students, demand for rental is high, wouldn't this have a positive impact on CG.

I have been offerred off the plan unit (2b, gargage) for 325K. Just doing my DD and wondering if the suburb is ok for investing.

would love and welcome every feedback.

 

[Propertunity]

why wouldn't you live in Jesmond, is it because plently of students or something else?

Take a drive around the area and see.
There are lots of shabby run down houses crammed with poorer students....and their old cars parked wherever.
There are some nice parts too - like any suburb.

As for plenty of students, demand for rental is high, wouldn't this have a positive impact on CG.

Not necessarily. CG there is slow and steady but not exceptional.
Also the Uni is building its own student accom on-site - so this will compete with private rentals.
O/Seas student numbers are down due to the high $AU.

I have been offerred off the plan unit (2b, gargage) for 325K.

Be wary of OTP.
Recently we purchased in Birmingham Gardens (next suburb) for a client. It was OTP, but infill development in a small development of 4 villas. We only paid $335K for that and it is worth more now. However, even though it was up and out of the ground, it was still delayed for 6 months due to the developers having a relationship break-up mid-construction.

Just doing my DD and wondering if the suburb is ok for investing.

Who are you targeted tenants? Who are you looking to attract?

 

[lizzie]

at the same time, people in some parts of Hamilton were chest deep in flood waters.

Yep - one of my properties was one of them. Sold it 12 months later due to development law changes and the plans were to develop - but it was a good little earner so wish I still had it.

Another property I purchased for a client in Hamilton had a flood notification on the 149 certificate. When I made enquiries of the council, I was advised that at the flood peak, water had only come to the end of the street but no-where onto this particular property at all!

The bottom line is, that you need to talk to the council certainly, but also neighbours in the street.

Very true - we bought one in a street that was deemed flood, but apparently it only came up around 100mm at the very back of the sloping blocks and nowhere near the houses.

 

[Kenny]

DON'T put too much faith in the flood certificates they offer to sell you on an individual property. Why?
I had a phone conversation with the council officer who does up the flood certificates. What came out on the A4 certificate a few days later was a pale imititaion of the information provided to me over the phone.

I agree. That's a great point about what you will get in writing and what you can get from chatting to the inspector/valuer/neighbour, Propertunity. I've decided it's almost essential to attend any building/pest inspection to hear what they say as it won;t be what they necessarily put down in writing.

For the purposes of looking at areas of above average CF and CG potential what is considered the inner ring of suburbs in Newcastle? Would you include Birmingham Gardens or Jesmond to the west, Mayfield to the north or Adamstown heights to the south?

Cheers,

Kenny

 

[Propertunity]

....what is considered the inner ring of suburbs in Newcastle? Would you include Birmingham Gardens or Jesmond to the west, Mayfield to the north or Adamstown heights to the south?

Kenny, I'd consider 'inner' as far West as Mayfield (not as far as West Mayfield though) and as you say, Adamstown to the South.

 

[ali]

A further note on the flooding to clarify: Carrington I believe was inundated by seawater during a big high tide, rather than the rainwater that flooded much of the lower parts of inner Newcastle in the Pasha Bulker storm.
Cheers, Ali

 

[Simon]

Kenny, I'd consider 'inner' as far West as Mayfield (not as far as West Mayfield though) and as you say, Adamstown to the South.

There is an issue in Mayfield East - the best bit of Mayfield which is a huge suburb.

They are planning new port facilities with may see a huge increase in the trucks through the suburb.

Why wouldn't I live in Jesmond. Jesso as they call it?

When I was a young guy I would have lived there. But not now I am a middle class and middle aged snob. Jesso shops has too many ladies in bike shorts who really shouldn't be wearing them ..... I am sure you know what I mean.

Guys with no shirt or shoes in woolworths. I am sure every city has the equivalent.

The houses are of a post war fibro type with really little prospects of gentrification.

But I do own a 1960 Sydney red brick home in North Lambton rented to students. Would consider another. But wouldn't live there myself.

I am in a crappy little workers cottage in inner city Hamilton. My students have a nicer kitchen than us. But I like the amenities, the sea breeze and my neighbours

Cheers,

 

[bhutcho]

Re median-priced property: Mayfield is still pretty good value in terms of rent returns, isn't it? Especially with the granny flat option. I know it has had good CG for years but it was way cheap to start with. I think there is still a lot of gentrification to go on there and bigger blocks than Iso etc.
Cheers Ali

Mayfield East was an area of interest when I bought my first IP but although the area seems to be moving slowly upwards in the demographic that live there the main thing that concerned me was the availability of 3+ bedroom houses that offered off street parking, weren't a dump and reasonably priced.

Could have changed since then. If the market takes a sharp correction then this area would be on my list to check out.