NSW Central Coast

[Ideo]

I still reckon it will eventually. I've got two properties up there now that are slightly cashflow positive, so I'm not too fussed if it takes another 10 years.

I just can't understand why anyone would want to live past Penrith rather than in Woy Woy. It costs the same and takes similar time to get to the city, but I think the coast (even with all its problems) is a much nicer place.

Yep.

I work in Gosford and grew up here.

It's not for me, but I can see the appeal over Western Sydney, that is for sure.

It's also important to note that Gosford City Council has just got a new General Manager who is far more realistic and business orientated, so hopefully development and growth will actually be a possibility.

 

[Paul B.]

Yep.

I work in Gosford and grew up here.

It's not for me, but I can see the appeal over Western Sydney, that is for sure.

It's also important to note that Gosford City Council has just got a new General Manager who is far more realistic and business orientated, so hopefully development and growth will actually be a possibility.

Looks like the planets are aligning for the CC - you heard it here first

 

[Paul B.]

Also I hear a whisper that the Wallarah 2 Underground Coal Mine is going back to the department very soon

Yeah as far as I know the EA is underway.

 

[china]

I still reckon it will eventually. I've got two properties up there now that are slightly cashflow positive, so I'm not too fussed if it takes another 10 years.

I just can't understand why anyone would want to live past Penrith rather than in Woy Woy. It costs the same and takes similar time to get to the city, but I think the coast (even with all its problems) is a much nicer place.

Agreed. The southern central coast - Point frederick, terrigal and avoca is as good as anywhere in sydney.

 

[rockDr]

Hi guys,

I have grown up on the coast and must say the lifestyle definitely has it over Sydney.

There are approx 40,000 people that commute to Sydney each day. So there are a lot of people taking advantage of the lifestyle and cheaper property prices than Sydney.

There has been very little growth on the coast now for the better part of a decade. But there are a few projects in the works which will help to change this area from warm (on Margaret Lomas' hotspot list) to potentially hot!

The first and foremost is a university in Gosford CBD, this would provide the spark to help revitalise the city and turn it into a uni town. This will be one of the catalysts to help retain young people on the coast, firstly for education and then work once we see continued investment in Gosford as a regional city.

The university of Newcastle has already signed an MOU to establish a university presence in the CBD.

http://www.newcastle.edu.au/news/2013/01/17/university-to-establish-presence-in-gosford-city.html

Both the council and federal members are currently identifying opportunities for joint funding for the university complex.

http://centralcoast.businessink.com.au/stories/health-social/partnership-sees-hope-for-kibbleplex


There are several key infrastructure projects in the works which will enable better commuter travel times to Sydney both by rail and road.

The first is the F3 and M2 road link, which would create a bypass onto the M2 for commuters from the coast.

http://www.dailytelegraph.com.au/ne...and-m2-road-link/story-fni0cx12-1226667950697

The second project, which has already commenced work is the passing loops rail project. The project encompasses building two passing loops between the major rail bottleneck on the coast which is Gosford station.

This will result in passenger trains been able to overtake freight trains, aiming to improve both commuter and freight train times and frequency. This project started in March this year.

http://www.railway-technology.com/news/newsdowner-edi-wins-gosford-passing-loops-project-australia

At the same time other components to the rail project, been the Northern Sydney Freight corridor will help with freight trains within the Sydney metropolitan area.


On top of all this is the proposed plan to redevelop the Gosford CBD and waterfront. This initially was meet with controversy, but council have since revised plans and again this development is back on the table.

http://www.ccrdc.nsw.gov.au/FAQ/TheWaterfrontatGosford.aspx

I think the central coast shows great potential, if one or two of the major projects end up coming off, this will truly revitalise the region and help the coast to build and develop it's own educational (tertiary) and economic climate.

The areas that are currently in demand are around the Gosford station, like Narara, Wyoming, Niagara Park, Lisarow and East Gosford.

Older properties in Narara can return up to 7% gross rental yields, so a property that is cash flow neutral is possible, whilst remaining exposed to potential capital gains upsides if these projects deliver.

Rental vacancies are under 2%, and demand supply indicators show the region is picking up.

 

[rockDr]

Sorry I might add a couple more points.

Of course future capital growth in the region will be dependent on these projects coming to fruition.

The NSW State Govt does in fact recognise this, and Gosford has been identified as one of the six regional cities that will help underpin future growth in the state.

The central coast is simply too large to be ignored. It has been held back in the past by inept local govt decisions and passovers from the state. There is the potential for this to change.

Of course, things may not change, and we would see stagnant growth in the region for the better part of a decade.

However, they are not making anymore coastal areas, and the central coast' proximity to Sydney and Newcastle makes it ripe picking for beachside living with (hopefully) a faster commute to Sydney in the future!

 

[dvm71]

I have an IP in Gorokan which has turned into a bit of cashcow for us. I also have been watching this develop for the last year. I spent some time talking to the council town planner about 2 months ago to get the facts as to what was happening. Very interesting.

http://www.wyong.nsw.gov.au/for-business/chinese-theme-park---warnervale/

 

[china]

rockDR, thanks for an excellent post concerning developments in Gosford.

Many projects have been touted for Gosford CBD over the past few decades but nothing has come to fruition.

Ever since, the business hub moved from Mann street Gosford to Erina in the early 80s, the main street of Gosford (Mann street) has been plagued by graffiti and extensive commercial vacancies. It is not safe to walk through in the dark. I am not seeing any revival there at present with many commercial sites either empty, awaiting leasing or for sale.

 

[ali]

There is also the rollout of the NBN in Gosford and surrounding suburbs and the push by council and businesses for Gosford to develop into a telecommuting hub. Wyong is also planning a university (perhaps a bit ambitiously):
http://www.wyong.nsw.gov.au/about-council/videos/media-release-2013/warnervaleeducation-precinct/

With so many possibilities in play, perhaps it will finally be the Central Coast's time? Either way, vacancy rates remain tight and it is still very easy to pick up a cashflow positive property, although perhaps not for long.

Cheers, Ali

 

[macca446]

I still reckon it will eventually. I've got two properties up there now that are slightly cashflow positive, so I'm not too fussed if it takes another 10 years.

I just can't understand why anyone would want to live past Penrith rather than in Woy Woy. It costs the same and takes similar time to get to the city, but I think the coast (even with all its problems) is a much nicer place.

Yes how true the coast definitely is a better lifestyle,I purchased at Umina about 7 years ago firstly as investment and about 5 years it became my PPOR but prices have been so flat for a long time now but it will get there,here in town so much new business happening this place has such a good feel to it,love it here.
Macca446

 

[see_change]

There is one thing that will drive prices up on the central coast and one factor alone .

Big increases in sydney .

Sydney people will sell up and move to the cc and be mortgage free or
people won't be able to afford sydney and buy up in the cc.

The only proposed project that could make a quantum change to the internal dynamics of the coast is the ultra fast train ( to sydney ) , and I haven't heard that is going to happen soon if ever

I like the cc and still look at it when we think about where to buy our next IP's. it will move , once sydney has moved significantly . Having said that there is already some movement of stock if not in prices with cheaper IPs selling to those wanting to get in early ( or so I've heard .....)

Cliff

 

[macca446]

There is one thing that will drive prices up on the central coast and one factor alone .

Big increases in sydney .

Sydney people will sell up and move to the cc and be mortgage free or
people won't be able to afford sydney and buy up in the cc.

The only proposed project that could make a quantum change to the internal dynamics of the coast is the ultra fast train ( to sydney ) , and I haven't heard that is going to happen soon if ever

I like the cc and still look at it when we think about where to buy our next IP's. it will move , once sydney has moved significantly . Having said that there is already some movement of stock if not in prices with cheaper IPs selling to those wanting to get in early ( or so I've heard .....)

Cliff

Yes I have been looking on the coast for a couple of months now and yes market has definitely moved up finding lower end bargains to renovate and hold is harder now as people are jumping on them,I wish I was at my consolidation phase a year or so earlier .
Macca446

 

[Ideo]

Sorry I might add a couple more points.

Of course future capital growth in the region will be dependent on these projects coming to fruition.

The NSW State Govt does in fact recognise this, and Gosford has been identified as one of the six regional cities that will help underpin future growth in the state.

The central coast is simply too large to be ignored. It has been held back in the past by inept local govt decisions and passovers from the state. There is the potential for this to change.

Of course, things may not change, and we would see stagnant growth in the region for the better part of a decade.

However, they are not making anymore coastal areas, and the central coast' proximity to Sydney and Newcastle makes it ripe picking for beachside living with (hopefully) a faster commute to Sydney in the future!

This has been the situation for at least the past 15 years.

An announcement is made (fast ferry, waterfront redevelopment, performing arts centre etc) and then quietly shelved.

That said, the ongoing development of industrial land on the Somersby plateau is a very positive thing, and will only grow, and the recent rezoning and land release of bulky goods/enterprise zoned land in North Wyong is also a positive.

It is those more immediate, local level proposals that will have the bigger impact.

That said, what China identifies about the main street of Gosford is pretty accurate. There are some changes afoot and some minor improvements, but nothing major.

It is a busy hub during office hours, and in particular at lunch time. But there is no reason to be there at any other time.

Central Coast as a whole is a different story. East Gosford, for one, is becoming a very nice little village now, and I can see great things for it. Other areas are going along nicely. There are some attractive investment pockets along the rail line, but these have become dormitory suburbs for people priced out of Sydney. Along the coast you get suburbs where nearly every house is a holiday house causing issues during the week.

It's a bit of a basket case to be honest. I grew up there. I've spent most of my working life based there. But I would not chose to live there.

 

[rockDr]

rockDR, thanks for an excellent post concerning developments in Gosford.

Many projects have been touted for Gosford CBD over the past few decades but nothing has come to fruition.

Ever since, the business hub moved from Mann street Gosford to Erina in the early 80s, the main street of Gosford (Mann street) has been plagued by graffiti and extensive commercial vacancies. It is not safe to walk through in the dark. I am not seeing any revival there at present with many commercial sites either empty, awaiting leasing or for sale.

A few of these projects are actually in play now.

The rail loops project has initiated construction, and there has been a big push from the local community supporting development at Kibbleplex, which would be a university/educational site.

Smaller scale developments like this one will help:

http://centralcoast.businessink.com.au/stories/property/grand-opening-nears-for-big-development

Private projects in the Gosford area are showing signs of returning investor confidence.

I don't know how long it was since you have been to Gosford? I was there several months ago and it has started to make a bit of a transformation. Although I might just be comparing it to Wyong.

Property prices have already started to move in the immediate Gosford area, vacancy rates are under 2% and there are cash flow positive opportunities around.

Have a look at RE.com suburb profiles around North Gosford, Niagara Park, there has been a big spike in demand, with little increase in supply nor price, until recently.

Prices have moved a little, and from speaking with numerous RE agents over the past 6 months, a lot of interest had been generated by investors, both local and interstate.

I think the region has missed out on a lot in the past, but some of the grander plans may come to fruition.

It's close vicinity to Sydney and the coastal strip make it perfect to grow into a large regional city with a waterfront aspect.

However this is reliant on the right investments and push from local govt. Which up to this point, we have not had.

 

[Hetty]

I'm looking to buy my first investment property and I'm keen on the coast. What do you all think are good suburbs? I've been looking at North Gosford, Erina and Woy Woy, are these good suburbs?

I'm looking for a house around the $300-400k mark. Wanting it to be positively geared but doesn't need to be dramatically so.

 

[china]

I'm looking to buy my first investment property and I'm keen on the coast. What do you all think are good suburbs? I've been looking at North Gosford, Erina and Woy Woy, are these good suburbs?

I'm looking for a house around the $300-400k mark. Wanting it to be positively geared but doesn't need to be dramatically so.

At that price range, you will be able to buy in North gosford, Wyoming, Narara, Woy Woy - lots of options.

Capital growth is minimal and happens once in a blue moon - usually follows on from Sydney boom

Rental yield is about 6% at present - gross return.

 

[rockDr]

I'm looking to buy my first investment property and I'm keen on the coast. What do you all think are good suburbs? I've been looking at North Gosford, Erina and Woy Woy, are these good suburbs?

I'm looking for a house around the $300-400k mark. Wanting it to be positively geared but doesn't need to be dramatically so.

Depends what your target market is?

If you are intending to purchase a property and rent it to a commuter, then around the North Gosford, Narara area is great.

There are also areas around Woy Woy that offer similar potential. I hadn't done as much research on Woy Woy however.

Erina is too far away from the train lines for commuters.

The main stations are Woy Woy, then Gosford. Other stations (surburbs) further north of Gosford are Niagara Park, Lisarow, Ourimbah.

We thought it best to invest within the 5-7km radius of the Gosford station in Narara, Wyoming and North Gosford.

East Gosford is also close to the CBD but is quite expensive in comparison to other areas around Gosford.

Still possible to find a cash flow positive or at least neutral property. Although with rate cuts it will becoming more cash flow positive each cut!

Do any other posters have any comments for Hetty?

 

[rockDr]

Depends what your target market is?

If you are intending to purchase a property and rent it to a commuter, then around the North Gosford, Narara area is great.

There are also areas around Woy Woy that offer similar potential. I hadn't done as much research on Woy Woy however.

Erina is too far away from the train lines for commuters.

The main stations are Woy Woy, then Gosford. Other stations (surburbs) further north of Gosford are Niagara Park, Lisarow, Ourimbah.

We thought it best to invest within the 5-7km radius of the Gosford station in Narara, Wyoming and North Gosford.

East Gosford is also close to the CBD but is quite expensive in comparison to other areas around Gosford.

Still possible to find a cash flow positive or at least neutral property. Although with rate cuts it will becoming more cash flow positive each cut!

Do any other posters have any comments for Hetty?

Recent article talking about investment opportunities on the Central Coast for those interested:

https://www.mywealth.commbank.com.au/property/a-nsw-coast-real-estate-road-trip-news20130723

 

[Hetty]

Thank you for the help I was thinking of commuters and the thought that Spludgey has, about people choosing to move to the coast rather than Penrith and similar.

Sorry, one more question! What is the best way to find out about bad streets in suburbs?

 

[mikezen]

Phone a local property manager and ask them what to avoid