I understand why locals like it but as an investment there are much better elsewhere. Personally I hold properties in Bomaderry with an 8% yield, Central Nowra at 7.5% and have just picked up another at 7% to land bank.
South coast nsw
- Thread starter devo76
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Chilliblue,
7.5% in the CBD, now you've got my attention. Care to PM me!! I'm approved and ready to go but still looking
Knight, Illaroo does have a pretty good rep, the OC class is selective but the rest of the school isn't.
There seem to be a few Somersofters living in or around Nowra. Maybe we should meet up one day over summer for a beer, anyone keen??
7.5% in the CBD, now you've got my attention. Care to PM me!! I'm approved and ready to go but still looking
Knight, Illaroo does have a pretty good rep, the OC class is selective but the rest of the school isn't.
There seem to be a few Somersofters living in or around Nowra. Maybe we should meet up one day over summer for a beer, anyone keen??
It takes a lot of time and a lot of rejection but you ultimately get there. Talk to Matt or start working on attaining your relationships with the agents.
This last one took 8 months and we ready and in the right place at the right time.
We have family and friends down there and they continually push North Nowra as the place to be but I can never make the figures stack up. I try and try but it never works. I must be missing something.
I agree that the area is on the increase, rentals are below 1% and there are sound fundamentals. Am working on one or two more this area if we are able to find them.
This last one took 8 months and we ready and in the right place at the right time.
We have family and friends down there and they continually push North Nowra as the place to be but I can never make the figures stack up. I try and try but it never works. I must be missing something.
I agree that the area is on the increase, rentals are below 1% and there are sound fundamentals. Am working on one or two more this area if we are able to find them.
Chilli I think you are the investors investor. Good lessons for all on patience and making the numbers work no matter how hard you need to work to get them. You are right normally the numbers in NN don't "work" with your expectations given you aim so high and a lot of this is due to the locals liking the area and its desirability as an owner occupied area too.
Many of my clients have the opposite problems of procrastination and being caught out of the market altogether. Its great to shoot for fantastic yields but if you miss a 10% shift in capital values in a market by spending 6 months trying to get an extra percent of yield it can be counter productive. From a BA perspective you just cant advertise those returns either, as its not sustainable to get them every time. Occasionally you get a client a better deal than you think, but I would rather under promise and over deliver. When the ripple moves the total returns in the first 2-3 yrs are great whether starting yields are at 5.8, 6.2, or 7.5 % Obviously higher starting yields are great but it really depends on investor's level of creativity - like how active they want to get in adding value, how long term they can see, whether they are prepared to renovate and/or develop etc. With low vacancy the rents are growing above inflation anyway so positive cf only takes a few short yrs to achieve.
As always, take care of the downsides and let the upside take care of itself! You have done this very well indeed. Kudos
Many of my clients have the opposite problems of procrastination and being caught out of the market altogether. Its great to shoot for fantastic yields but if you miss a 10% shift in capital values in a market by spending 6 months trying to get an extra percent of yield it can be counter productive. From a BA perspective you just cant advertise those returns either, as its not sustainable to get them every time. Occasionally you get a client a better deal than you think, but I would rather under promise and over deliver. When the ripple moves the total returns in the first 2-3 yrs are great whether starting yields are at 5.8, 6.2, or 7.5 % Obviously higher starting yields are great but it really depends on investor's level of creativity - like how active they want to get in adding value, how long term they can see, whether they are prepared to renovate and/or develop etc. With low vacancy the rents are growing above inflation anyway so positive cf only takes a few short yrs to achieve.
As always, take care of the downsides and let the upside take care of itself! You have done this very well indeed. Kudos
Chilliblue,
7.5% in the CBD, now you've got my attention. Care to PM me!! I'm approved and ready to go but still looking
Knight, Illaroo does have a pretty good rep, the OC class is selective but the rest of the school isn't.
There seem to be a few Somersofters living in or around Nowra. Maybe we should meet up one day over summer for a beer, anyone keen??
Ah that is why I heard whispers about selective at Illaroo then Allgood. Thanks for clarifying.
Definitely worth a catch up! I am flat out until early Jan but happy to send word around in the new year if anyone wants to catch up. Maybe close to Australia Day could work?
I am not sure if anyone wants to make some noise about a meet for late Jan or early Feb?
CoreLogic RP Data analysis:
Illawarra
?Sales activity currently sitting 7% above the five year average
?Median house values climbed 8.2% over the 12 months to December 2014
?Unit values rose 8%.
?Vendor discounting levels and average time on market both improved.
Illawarra
?Sales activity currently sitting 7% above the five year average
?Median house values climbed 8.2% over the 12 months to December 2014
?Unit values rose 8%.
?Vendor discounting levels and average time on market both improved.
Was thinking of moving down there early next year for some and work and renos, not sure what that market will be doing then though may have to buy earlier, things are too slow here is Brissie, cg gains- it's like watching dead grass trying to come back to life, I wonder how long the regional boom will last for, if Sydney tanks, I suppose it will be like dominoes when it all falls down. What is the surf like down there near woolongong anyone know? Crowded? And what about local hotties? Or do I have to drive all the way to Sydney to have a good time lol
Hope you have thick wettie, cause you're gonna need it! Nice area but water temp. is way too cold. Especially if you are use to warmer waters.
Must be bigger though w the south swells? And thinner crowds you think? I will have to dig my Victoria wettie out and put on a few pounds maybe!
No South swells, more crowds than the superbank, too cold. Better steer clear mate.
Under normal circumstances regional property should be picking up.
However, unemployment is increasing and investor have been burned up in the mining areas so not many investors would be looking at regional areas.
Sydney is still moving and eventually it will stabilise but at the moment there is no pressure for prices to fall.
NSW has benefited a lot from the property boom collecting stamp duty so they have money to spend on infrastructure plus we are going through a period of very low interest rates so they can afford to borrow.
I hope this helps.
Correct. Stock down, sales rates up, low vacancies, prices well up off the bottom now.
Not sure if this is big news or just odd:
http://www.news.com.au/travel/trave...n-shoalhaven-nsw/story-e6frfq80-1227244624781
http://www.news.com.au/travel/trave...n-shoalhaven-nsw/story-e6frfq80-1227244624781
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Chilli, are you able to do this for the Shoalhaven area as well?
Shoalhaven?s median house price grew from $335,000 in 2010 to $370,000 in 2014.
Small sample size means results can be a bit dramatic with new estates or new boutique unit development near the beach etc, however the growth is very real, Huskisson and Vincentia have had solid rises and there is not much affordable stock around. Far south is much more patchy at this stage but its moving down.
