Newcastle

This thread may save or cook my bacon!! Wife and I nearly about to pay $40xk for a 4b3bth house and land at the vines, cessnock. Why? Rent at aobut $410, depreciation, being new dont expect calls re maintenance, and think growth will be good over time. We are almost about to exchange...

Reading all this makes me think again....maybe my thoughts that a new place will be better in long term are not right for Cessnock, and something like would be better if it can be rented for $450pw and bought for $400k : http://www.realestate.com.au/property-house-nsw-broadmeadow-108727841

Might regret or praise seeing this thread!
 
Why dont you start a new thread about Cessnock. The OP posted a question about Newcastle. Completely different place and market.
 
ije said:
This thread may save or cook my bacon!! Wife and I nearly about to pay $40xk for a 4b3bth house and land at the vines, cessnock. Why? Rent at aobut $410, depreciation, being new dont expect calls re maintenance, and think growth will be good over time.
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Mmmm. personally I would not be spending $40xK on anything in Cessnock. The median price there is $235K. The best CG is made by buying at or below the median price for an area, not 2x the median!:eek:

If you'd selected Broadmeadow over Cessnock 15 years ago, you'd have done better. Cessnock's median went up 213% whereas Broadmeadow's went up by 241% over the same period.

No-one knows what the future holds, but we can have a good guess :)
You might get less maintenance issues buying new but you'll be doing that (possibly) at the expense of CG. What is the long term goal here?
 

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Fully concur with Prop in not paying 2X Median price - unless it is a triplex! I would only ever buy below median price for above average pieces of land (but what do I know Prop :rolleyes:)

Even if you could get a triplex I'd prefer to diversify (i.e. 1 in Cessnock and 1 in Maitland - or another city etc...)
 
Bon said:
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.
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Yeah those are good suburbs. I like Georgtown and Waratah.

As for out of the city, forget Maitland or Cessnock, I would be looking at Raymond Terrace for some very affordable properties. The town is only 25 mins to Newcastle with 3 supermarkets, schools and everything you need. Houses there are available even under $200,000 like this one plus its an easy drive to Maitland, Nelson bay or Newcastle, very central.
 
Raymond Terrace is not considered central ... it might be geographically central but, in other words, it's not close to anywhere. I wouldn't buy there for similar reasons to why I wouldn't buy in Cessnock.

Raymond Terrace also has a bad bogan, low socio-economic reputation that is justified. Don't know that there is much CG potential there in the short term.

I'd stick to inner-ish suburbs of Newcastle or Maitland.
 
Well yeah i wouldn't live there but cheap first investment homes with good rental returns. I prefer inner Newcastle though since the prices are still affordable but there are options out of the city too if your finance is less. I woudn't live in many western Sydney suburbs either but I would sure buy the properties if I see a good deal.
 
If you were looking for something not in Newcastle but in outlying areas I dont mind Raymond Terrace or Medowie as its got a very good rental market due to the transient RAAF population. This area is seeing a lot of investment in infrastructure, etc, as more happens at the RAAF Base and airport. IF it was me and it was a choice of the two areas ie: Cessnock or RT, I would invest in RT before i would invest in the Cessnock/Maitland area myself.

But.....for me personally I would still stick to the inner Newcastle areas for the CG.
 
Raymo (as it is not-so-fondly known locally) has a lot of new industry going in around the Tomago and Heaterbrae areas, which is a plus. It is very easy to get a cashflow pos property, especially in the ex-housing commission areas. It is well serviced, in terms of shopping, medical and schools.
The negatives (apart from what has been said already) is:

1. There is a hell of a lot of developable land around the town, much of which will at some point become housing so there is a lot of supply long-term. There is a Lower Hunter planning stratedy that covers this.
2. There are ongoing issues with aircraft noise that have not been properly resolved. Some areas were having building restrictions put on land but I haven't been following that debate closely lately so can't give more specific information.

Cheers, Ali
 
I'm a fan of Islington, but all those suburbs listed are good. Also Mayfield has potential.

Newcastle is probably my next port of call for property.
 
Full disclosure: I'm a biased local :)

Being somewhat of a newbie in terms of property I'm not making any statements about investment viability... But as a resident & current PPOR seeker, I'm a BIG fan of Newcastle. The whole harbour is being reinvented & it looks amazing.

Just for the sake of a nice afternoon, drive into Honeysuckle & have lunch. Then wander out to the beaches & just soak up the vibe. I can't honestly see that whole area (Wickham -> Foreshore -> Newy Beach) NOT becoming an amazing piece of City. It's a bit pricey at the moment, but I imagine it paying off well in 15-20 years. Current constructions & plans around Honeysuckle include a few national offices, Business & Law faculties for Uni, 3 tower office centre & there's still a good chunk of waterside space to be used. Future plans include such fun as Cruise-ship terminal & other touristy things.

My totally unjustifiable & unfounded feeling is that Newcastle is going to surprise people in the near future :)
 
Wickham and Maryville are very hot at the moment. This has been where our last 3 purchases have been and we have had an amazing amount of capital growth here.
 
Ideo said:
I'm a fan of Islington, but all those suburbs listed are good. Also Mayfield has potential.

Newcastle is probably my next port of call for property.
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Islington is changing as we watch. Boutiques, coffee shops etc.

I haven't even seen a hooker there for ages.

If I was buying now it would be another cashflow student place in North Lambton or a CG investment in Islington. Maybe even commercial in Islington or Wickham.

Cheers,
 
kyebosh said:
Full disclosure: I'm a biased local :)

Being somewhat of a newbie in terms of property I'm not making any statements about investment viability... But as a resident & current PPOR seeker, I'm a BIG fan of Newcastle. The whole harbour is being reinvented & it looks amazing.

Future plans include such fun as Cruise-ship terminal & other touristy things.
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I was thinking very similar to this in the hope that it turns out similar to Docklands in Melbourne. Problem being that another alternative to the cruise terminal is another coal terminal. If this gets approved the then I think the surrounding areas would not appreciate anywhere near as much in value.

For those talking about a mining boom in the hunter being a good reason to invest remember its not like in WA where exorbitant rents can be charged and once the industry slows (which inevitably it will) you are left with a property that may be worth a lot less or at least not make much capital gain in the long term compared to other areas.

Being a fellow Novocastrian I also agree with the sentiment that anything more than about 30mins travel is too far for a lot of people so besides depreciation I cannot see why you would invest in the newish estates such as Cameron Park, Fletcher etc

I'd like to see where in Newcastle someone can pick up a decent house for around the median though as I'd love to buy another.
 
bhutcho said:
Being a fellow Novocastrian I also agree with the sentiment that anything more than about 30mins travel is too far for a lot of people so besides depreciation I cannot see why you would invest in the newish estates such as Cameron Park, Fletcher etc

I'd like to see where in Newcastle someone can pick up a decent house for around the median though as I'd love to buy another.
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Cameron Park is close to the end of that new freeway going up the valley, making it pretty central in a broader sense. 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
 
ali said:
Mayfield is still pretty good value in terms of rent returns, isn't it? Especially with the granny flat option.
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There aren't too many blocks in Mayfield that would qualify for a granny flat construction. (land has to be > 450m2) They are few and far between - but there are some. ;)

Other than that, rent returns can be close to 5.2% give or take.
 
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