NSW Central Coast

[MaxwellSmart]

So would you not consider preferentially using your investment dollar in the top six areas?

Of course. Blacktown & even Burwood at position 9. I like the asian-demographic.

Preferentially (sector) speaking, I anticipate a stronger return in the ASX200 index until Super reaches 12%.

But, for property investment. Burwood is where I would place my money.

 

[rockDr]

So would you not consider preferentially using your investment dollar in the top six areas?

So you would suggest buying into an overheated market in some of these areas?

 

[MaxwellSmart]

I believe with patience in your search, stronger investment opportunities may be found.

I have no problems with an over-heated market, as long as the price you settle on isnt over-heated.

If this was directed at me, Im not sure what else I can offer in reply.

 

[rockDr]

I believe with patience in your search, stronger investment opportunities may be found.

I have no problems with an over-heated market, as long as the price you settle on isnt over-heated.

If this was directed at me, Im not sure what else I can offer in reply.

Wasn't directed at you.

Directed at China who was firstly comparing a regional town with inner capital cities and then stating that these areas are 'better' to buy.

Perhaps the avg investor starting out may not have 750k to buy in these areas.

I'm going to go out on a limb here and state that perhaps not everyone wants to spend almost 1 million on one property (or may not even have those type of funds available).

A number of posters here have already shown there has been a significant increase in interest in areas that could be perceived to be good value in comparison to some areas that have already had explosive growth (in prices, not necessarily in rents).

 

[china]

Does anyone know of a good PM on the Central Coast? I would be appreciative of your recommendations.

 

[rockDr]

Does anyone know of a good PM on the Central Coast? I would be appreciative of your recommendations.

I know a fantastic one that is a dedicated property manager who owns her own business, so has vested interest in how well the properties are managed and how well her clients are looked after.

She has always achieved absolute top dollar for rentals (normally above what other RE agents have based estimates on) and is very thorough with tenant selection.

Very professional, and very good with communicating to clients, always keeps clients in the loop.

We canvassed a numerous potential property managers late last year, and a number of them never even responded to inquiries. Some of the others who did respond and then inspected our property never even really seemed interested in managing the property.

PM me for details if you require them.

 

[china]

I know a fantastic one that is a dedicated property manager who owns her own business, so has vested interest in how well the properties are managed and how well her clients are looked after.

She has always achieved absolute top dollar for rentals (normally above what other RE agents have based estimates on) and is very thorough with tenant selection.

Very professional, and very good with communicating to clients, always keeps clients in the loop.

We canvassed a numerous potential property managers late last year, and a number of them never even responded to inquiries. Some of the others who did respond and then inspected our property never even really seemed interested in managing the property.

PM me for details if you require them.

Thanks very much Rock.

Its always good to find property managers who are actually interested and communicative.

Many are just employees who don't care too much about anything.

I appreciate your help once again.

 

[coral]

Deception Bay vs Wyoming

Hi Friends, i am also a new investor and have read your valued comments with great interest. I really need to decide between a t/house buy between Deception Bay, Qld vs T/House in Wyoming. I have done quite a bit of research online. As with every coin that has two sides, i find myself still indecisive about investing in CC. Any feedback would be highly appreciated. Also what are your thoughts on doing NRAS investment?

 

[china]

Hi Friends, i am also a new investor and have read your valued comments with great interest. I really need to decide between a t/house buy between Deception Bay, Qld vs T/House in Wyoming. I have done quite a bit of research online. As with every coin that has two sides, i find myself still indecisive about investing in CC. Any feedback would be highly appreciated. Also what are your thoughts on doing NRAS investment?

Welcome Coral.

I can't really comment on Deception Bay Queensland but do have experience with Wyoming properties, which incidentally are selling very well at present.

As you must be aware, Wyoming is one step away from Gosford, hence has good social infrastructure and the rental returns there are about 6% at present. Capital gain like most of this area is limited and it is debatable whether we will see much CG over time. Mostly the population is middle to lower class people and rental demand is reasonable.

What are your thoughts on the pros and cons of Wyoming?

 

[see_change]

Hi Friends, i am also a new investor and have read your valued comments with great interest. I really need to decide between a t/house buy between Deception Bay, Qld vs T/House in Wyoming. I have done quite a bit of research online. As with every coin that has two sides, i find myself still indecisive about investing in CC. Any feedback would be highly appreciated. Also what are your thoughts on doing NRAS investment?

Hi Coral , as you are a new investor I can't leave China's statement unchallanged .

China is someone who over analyses everything and to the best of knowledge has never bought an investment property . He is an armchair expert. All hat no cattle . He is quiet knowledgeable is some sense and for that reason some of the more experience investors are trying to point out that , while his initial observations are correct , he then draws the wrong conclusion.

To say the central coast doesn't have capital growth is wrong . If that was the case then 50 years ago it would have been more expensive than sydney and it wasn't .

Central coast goes up because of the ripple effect . Sydney goes up ( which it's doing at the moment ) and as people get priced out of the sydney market or sell up there and look for somewhere quieter to escape the rat race they move to the central coast so prices in the central coast. Some people actually want to live in the central coast . there is a very strong group of musicians who live up there . One of my song writing friends , Guitarist who has played support for people like Glen Campbell and John Mellencamp , chooses to live there and has just bought her first house lives there. She found the market quiet hot and had problems finding the right property but then found a private sale which wasn't advertised. It's more relaxed up there.

So once sydney goes up the coast will follow . Having said that , once it goes up . it will go sideways and gradually down for a long period of time. I have seen this happen . Friends bought two waterfront blocks in Hardy's bay many years ago for around 40 K each.. Good initial growth then the market came back and after around ten years of side and down movement they sold , just before the next boom ....Many regional and coastal areas do the same thing . The market up there is just starting to move up there so , if the current property cycle I expect it to go up , percentage wise similar to what Sydney goes up.

I would buy up there if we didn't have a fair amount of exposure in property ( and land tax .... ) in NSW.

If you are happy with some capital growth in the medium term I think it is not unreasonable to buy up there. but once you buy up there I'd do one of two things ,

Watch the market very closely and when you have good capital growth sell OR

buy and forget and accept that at some stage the property you paid 200 K and could have sold for 400 at the peak is now only worth 300 and will sit on the market for 6 months without selling ...... , but , in the next cycle it will go up to 800 etc.

Cliff

 

[see_change]

Deception Bay is the cheapest place on the redcliffe peninsular and has a reputation , but people on the forum made good money there in the last cycle.

Redcliffe is quiet ( I think ) at the moment and you could probably pick up good deals.

Cliff

 

[china]

I would agree that on the Central Coast, it can be a long time between drinks in terms of price rises.

Its capital growth potential is dependent on Sydney as has been pointed out above and despite many touted developments, there is no substantial confirmed driver of capital growth that is easily forseeable.

This means that the Central Coast will not / is unlikely to outperform any general rise in the property market. As such, it is a riskier proposition than investments in other areas. Obviously there can be individual exceptions but as a general principle, regions which have confirmed infrastructure developments and a history of sustained capital growth may offer better investment potential.

 

[see_change]

China

You don't need to outperform the property market to make significant money in property . You will always find properties or areas that will do / have done better than the ones you buy .

You just need to be in it at the right time . Are you ?

I think I am .

There is only one driver in the central coast . Sydney . Sydney is moving .

Cliff

Btw , china , the only reason I'm bothering to reply to your post is because of the advice you were giving to an inexperienced investor . I haven't seen any evidence that you actually listened to the advice that has been given to you by several members here .

 

[china]

It is over-simplistic to suggest that the only driver of property prices on the Central Coast is the movement of Sydney prices and hence as there is movement in Sydney, we should invest on the Central Coast.

Every investor, with their limited investment dollars should seek areas which are expected to outperform. This applies not only to property investment but other investment asset classes such as shares. It is pointless to take investment risk without additional reward.

There is no point in investing in assets which are likely to be underperforming in terms of capital gains and low yields. I am not suggesting that this is the case on the Coast as I believe that there are certainly select pockets of opportunity here but I would recommend that investment capital is better utilised in areas which have a higher likelihood of sustained capital growth rather than waiting for a one in twelve year surge.

 

[Jaz]

Out of curiosity, how many of the advocates for buying on the Central Coast either live there or have some sort of attachment to the area (e.g. previously lived there)?

I'm interested to know how many "outsiders" would opt for the Central Coast over other regional areas.

Cheers,

Jaz

 

[macca446]

Out of curiosity, how many of the advocates for buying on the Central Coast either live there or have some sort of attachment to the area (e.g. previously lived there)?

I'm interested to know how many "outsiders" would opt for the Central Coast over other regional areas.

Cheers,

Jaz

Hi Jaz,
I currently live on the coast and settled on a property in orange about 4 weeks ago not that the coast is not where I want to invest but the price and return attracted me on that purchase but in saying that I just missed out on a purchase Saturday on the coast it was a good buy so I am looking on the coast even now as I think certain areas will pick up soon and ready to wait.
Macca446

 

[rockDr]

Out of curiosity, how many of the advocates for buying on the Central Coast either live there or have some sort of attachment to the area (e.g. previously lived there)?

I'm interested to know how many "outsiders" would opt for the Central Coast over other regional areas.

Cheers,

Jaz

Hi Jaz,

I grew up on the Central Coast and since then have moved and lived in many other areas for work (mining).

I have lived and spent a lot of time in regional and outback towns such as Broken Hill, Orange, Dalby/Chinchilla, Alice Springs, west coast Tasmania.

So I can't say I am an outsider looking in. But I still think the region has a lot going for it.

China is right in that development is often spoken about and never delivered, however at the moment the big development that is occurring is improvements to transport infrastructure which help better connect CC to Sydney.

The F3 to M2 link is long overdue and is in the tender process at the moment and if approved construction will start next year.

Improvements to rail systems from CC are happening now and should be completed mid 2015. This will improve commuter train reliability to Sydney and there are promises for an additional 6 trains to be put on to cope with increased commuter demand.

I think the current CC pros are:
- Proximity to Sydney
- Property prices
- Cash flow positive opportunities in property
- Coastal location
- Significant population (with good growth projections)

Cons are:
- Historical poor performance from local govt
- Low tertiary education rates and higher unemployment avgs
- Oversight from both the state and federal govt regarding issues on CC
- Lack of regional identity, eg Newcastle is mining town, Sydney is big business and office space

Drivers for growth will be:
- Population boom in western Sydney
- Large price increases across metropolitan Sydney
- Recognition of CC from a state and federal level and some needed projects start to get off the ground
- Sea change from Sydney

I will add for disc I have property on CC, but am in process of purchasing in other areas now for diversification and am paying enough land tax in NSW.

 

[see_change]

Good summary RD

The only thing that is keeping me from buying in the central coast or Newcastle is the land tax situation . With our last two purchases ( north arm cove and turramurra ) will will start supporting the nsw government revenue base via land tax . We could buy one more cheapie in our SMSF in Nsw and not pay land tax but that's the segment of the market that is hot , and I don't want to overpay in that segment .

We've just been up in q'land over the last two days and have made offers on three properties . While there is increased sales in the areas we are looking at , prices haven't gone up much if at all and certain price brackets are still relative soft and possibly still a buyers market ( according to at least one agent , most are trying to hype things up , but my take was that was mainly a sales technique, thought several properties we checked on the web are now under contract ...... time will tell

Cliff

 

[tambourineman]

Given the investment going on the pacific highway I think the mid north coast would be better

 

[coral]

Deception Bay vs CC

Hi Cliff and China, thanks for your comments and i can't disagree with either of your comments which makes my decision making harder. I am providing the details of the scenario and hoping that you would help me analyse it:

Deception Bay, Qld: 3Bd T/house (Higgs St, is it nice?), 310k, weekly rent 330pw, Net Yield 5.02%, NRAS, Capital Growth predicted (5yr) 5.72%, Rental Vac 4%; Risk: i am not sure if its flood hit area or not and to what extent it will be impcated; travelling all the way there from nsw is a bit hard for me at this stage;

Wyoming CC, 3Bd T/House (kinarra av? is it nice street?), 420k, weekly rent 475pw, sinking fund $77, rental vacc 2%; NRAS;

Your thoughts folks as to which one would you go for and why? Hi China have you got Capital Growth report etc for these suburbs from your CBA rp data? Can you share pls?