Shellharbour NSW

[UrbanPlanner]

Been looking to get out of Perth as it's too hot to secure a property, and it's probably too late to start seriously looking at Sydney's west, but in looking at Sydney, i shifted my focus to more regional NSW towns with diversified economies i.e. Wollongong, and this led me to Shellharbour.

Therefore wanted to know if anyone is familiar with Shellharbour and surrounds (Barrack Heights etc). The areas I'm looking at are lower end of the market as you can get a 3x1 house for around (sometimes under) $300k, with rents of $350-$400pw - anyone have any experience around these areas?

These $300k houses are amongst $1m+ houses given the coastal location, which is one of the first thing that spruiked my interest. Also, Stockland is currently redeveloping the shopping centre to add a myer, woolworths and range of specialty shops.

 

[Gorillas]

Long term reader of these forums

I have pretty good knowledge of the area. Seems like anything priced right (in the under $500k) is selling but if it aren't it sits for a while.

Shellharbour region is growing but also employment is struggling in the area. Lot of job cuts anong the coal mines / steelworks / wharves etc. The job ads in the local mercury on a saturday has halved.

In the shellharbour area in my opinion if you were looking for somewhere to buy with potential growth(really areas which are cheaper then similar nearby areas) I would be avoiding the new areas of shell cove / flinders and looking at warilla on the beach side - you can pick up houses for under $400k ( which may be a bit outdated inside ) which is walking distance to the beach and near good facilities - similar houses in shellharbour village (similar distance to beach) go for over $500k

I would also look at mount warrigal on the lake side (not the house commission area) the areas from around Landy drive to reddall pde. It is a quiet area with a lot of 70's houses, a lot of retires live there. While the stock is older then shell cove / flinders I think there is better value buying there. Not sure if you could get something for under $300k but if looked around you should be able to get something decent in the $300-400k. I lived in mount warrigal around 2007 before moving the local shop of 6 only had one shop leased now all 6 are leased.

With the rates decreasing I have noticed there is some lack of stock in the $300k range which has pushed up prices a little - I have concerns for the area when rates eventually increase again could really damage the area.

Any other questions let me know.

 

[qonyx_sydney]

Long term reader of these forums

I have pretty good knowledge of the area. Seems like anything priced right (in the under $500k) is selling but if it aren't it sits for a while.

Shellharbour region is growing but also employment is struggling in the area. Lot of job cuts anong the coal mines / steelworks / wharves etc. The job ads in the local mercury on a saturday has halved.

In the shellharbour area in my opinion if you were looking for somewhere to buy with potential growth(really areas which are cheaper then similar nearby areas) I would be avoiding the new areas of shell cove / flinders and looking at warilla on the beach side - you can pick up houses for under $400k ( which may be a bit outdated inside ) which is walking distance to the beach and near good facilities - similar houses in shellharbour village (similar distance to beach) go for over $500k

I would also look at mount warrigal on the lake side (not the house commission area) the areas from around Landy drive to reddall pde. It is a quiet area with a lot of 70's houses, a lot of retires live there. While the stock is older then shell cove / flinders I think there is better value buying there. Not sure if you could get something for under $300k but if looked around you should be able to get something decent in the $300-400k. I lived in mount warrigal around 2007 before moving the local shop of 6 only had one shop leased now all 6 are leased.

With the rates decreasing I have noticed there is some lack of stock in the $300k range which has pushed up prices a little - I have concerns for the area when rates eventually increase again could really damage the area.

Any other questions let me know.

I'm considering Warilla for an IP because of the lower entry price, reasonable yield, proximity to the beach, Shellharbour town centre & marina.

I'm interested in a granny flat add-on to further increase yield and would be interested in your thoughts if you have seen increases in this type of construction around the area and whether you think the rental market would accept granny flat accommodation generally.

I grew up in Albion Park, so know the area well, however don't get down there much at all anymore.

 

[knightm]

I'm considering Warilla for an IP because of the lower entry price, reasonable yield, proximity to the beach, Shellharbour town centre & marina.

I'm interested in a granny flat add-on to further increase yield and would be interested in your thoughts if you have seen increases in this type of construction around the area and whether you think the rental market would accept granny flat accommodation generally.

I grew up in Albion Park, so know the area well, however don't get down there much at all anymore.

Qonyx see other r threads this one is old. But yes there are gf around there I have bought clients a few with existing and some target gf friendly blocks for future

 

[Gorillas]

To be honest I think the area is close to its peak. I would be waiting now, if you purchased in 2013 you would be sitting on some nice gains.

Actually think prices are getting crazy, you would struggle to get a house in Shell Cove / flinders now for under $550-600k

While all ex commission houses in Warilla are all asking for offers above $350-70k, I even see one in Beaton street is asking for offers above $450k, crazy!!
https://m.realestate.com.au/property-house-nsw-lake+illawarra-119790171

There is one house that recently sold for $680k in mount warrigal which is struggling to be rented for $580. https://m.realestate.com.au/property-house-nsw-mount+warrigal-415718011

These are two examples that lead me to believe people are now making irrational decisions now for fear of missing out.


One of my concerns is job growth in the area is terrible ( for the Illawarra region), lots of close downs etc, ask any layed off coal miner how they are going with their job hunting. I really can't see how the areas incomes / job prospects can continue to support the current prices.

 

[qonyx_sydney]

T

While all ex commission houses in Warilla are all asking for offers above $350-70k, I even see one in Beaton street is asking for offers above $450k, crazy!!
https://m.realestate.com.au/property-house-nsw-lake+illawarra-119790171

Thanks for the response. As i've never looked at ex commission in the area, are you aware of the types of things that are impacting the valuations. For example, what makes one ex commission $350k vs another $450k.

My understanding is that they are all pretty standard builds on standard blocks, with the only exception being some renovation work. $100k variance seems substantial.....

 

[Swearengen]

To be honest I think the area is close to its peak. I would be waiting now, if you purchased in 2013 you would be sitting on some nice gains.

Actually think prices are getting crazy, you would struggle to get a house in Shell Cove / flinders now for under $550-600k

While all ex commission houses in Warilla are all asking for offers above $350-70k, I even see one in Beaton street is asking for offers above $450k, crazy!!
https://m.realestate.com.au/property-house-nsw-lake+illawarra-119790171

There is one house that recently sold for $680k in mount warrigal which is struggling to be rented for $580. https://m.realestate.com.au/property-house-nsw-mount+warrigal-415718011



These are two examples that lead me to believe people are now making irrational decisions now for fear of missing out.


One of my concerns is job growth in the area is terrible ( for the Illawarra region), lots of close downs etc, ask any layed off coal miner how they are going with their job hunting. I really can't see how the areas incomes / job prospects can continue to support the current prices.

we moved to shellharbour around 12 months ago. we love the area but rent here. shellharbour / shell cove is expensive to buy in my view, Warilla and Lake Illawarra present a reasonable opportunity in my view (I generally don't invest in property >$500k).

 

[Davothegreat]

I'm considering Warilla for an IP because of the lower entry price, reasonable yield, proximity to the beach, Shellharbour town centre & marina.

I'm interested in a granny flat add-on to further increase yield and would be interested in your thoughts if you have seen increases in this type of construction around the area and whether you think the rental market would accept granny flat accommodation generally.

I grew up in Albion Park, so know the area well, however don't get down there much at all anymore.

We bought a pair of detached villas on a single Torrens title in Warilla early this year and had no trouble finding tenants for the rear villa. Would imagine a granny flat would be a similar story. Gross yield for the two villas isn't bad at 6.3% but nowhere near as good as the house/granny flat we bought in Berkeley a year ago, it pulls 7.4%... but those days are over as prices have moved a lot.

Cheers,
Dave

 

[knightm]

We bought a pair of detached villas on a single Torrens title in Warilla early this year and had no trouble finding tenants for the rear villa. Would imagine a granny flat would be a similar story. Gross yield for the two villas isn't bad at 6.3% but nowhere near as good as the house/granny flat we bought in Berkeley a year ago, it pulls 7.4%... but those days are over as prices have moved a lot.

Cheers,
Dave

Agreed I did a house plus gf for client last yr over 7% but very tough to even approach this yield currently. Needs a buyer with energy to renovate and pursue retrospective approval on an unapproved shed/garage to achieve this kind of thing now. Or else build a new gf etc. but most don't think that far ahead I guess when running yield calcs.