Thoughts: Wollongong/Gosford

[MitchNik]

Hi There,

Whats everyones thoughts on investing in Wollongong or Gosford? im looking to buy a unit atm and trying to work out whether my money is better spend in a regional hub then in Sydneys West.

I know they are reducing the size of the steel mill in Wollongong but have heard they are creating employment in other areas.

Also IF(big IF) this high speed rail goes in id say we will be seeing some rather large CG increases in both these areas.

Just fishing for opinions and any info as im not too familiar with these areas.

Cheers

 

[datto]

Well your fishing has certainly paid off Mitch. I was glancing through your post when I saw Sydney and West in close proximity. I assume you mean outer west. And yes my thoughts are its the place to be. It'cheap. It's got big shopping centre . It's populace is mainly under educated but street wise. It's only 40 kms to the big city compared to 100 with the gong. I know where I'd rather be!

 

[knightm]

Hi There,

Whats everyones thoughts on investing in Wollongong or Gosford? im looking to buy a unit atm and trying to work out whether my money is better spend in a regional hub then in Sydneys West.

I know they are reducing the size of the steel mill in Wollongong but have heard they are creating employment in other areas.

Also IF(big IF) this high speed rail goes in id say we will be seeing some rather large CG increases in both these areas.

Just fishing for opinions and any info as im not too familiar with these areas.

Cheers

In general the Sydney money is moving north and south along the coast so overall the idea is sound. The specific execution is the key.

 

[lawmich]

I've been to Erina for work meetings and meeting with clients. I get good vibes in the area because of shopping centres, shop, offices, cafes, bunnings and other amenities. It's near the hospinal. But I haven't really driven around the area for DD. I was also thinking about newy but a bit concerned with the air pollution from coal mining. I read it somewhere again where concerns were raised.

Just saw a small.house in Mayfield that seems to have good yield. Mayflied reminds me of darlinghurst newtown.

 

[nww]

I've been to Erina for work meetings and meeting with clients. I get good vibes in the area because of shopping centres, shop, offices, cafes, bunnings and other amenities. It's near the hospinal. But I haven't really driven around the area for DD. I was also thinking about newy but a bit concerned with the air pollution from coal mining. I read it somewhere again where concerns were raised.

Just saw a small.house in Mayfield that seems to have good yield. Mayflied reminds me of darlinghurst newtown.

Recent thread on newcastle
http://somersoft.com/forums/showthread.php?t=105751

 

[knightm]

I know they are reducing the size of the steel mill in Wollongong but have heard they are creating employment in other areas.


Cheers

Wollongong has been decoupling from steel money for many years. It has slowly been transforming its cbd into a trendy service based economy, they have plenty of population growth resulting from beaches and lifestyle close to (but without the traffic or price tag of) Sydney.

 

[knightm]

...ok so things are getting silly in Wollongong.

I spoke an agent today to tee up an inspection for a new listing (went on the net during the day on Saturday, no open homes etc yet) and he said 200 email enquiries today, sent out 68 copies of contract. Busy monday for him. Property will be sold by middle of week.

Hmm.

 

[Davothegreat]

I saw a lot of that in the past couple of months down there. The scenario below is now typical... House comes onto the market Wednesday lunch time with first open scheduled for Saturday. Finally get agent on the phone at say 2:30 after trying all afternoon - already had piles of enquiries and numerous contracts sent out. Attend private inspection Thursday or Friday and there are 10 - 15 offers already on the table at silly prices. No need for Saturday open.

What's even more scary is I've now had more than one agent tell me that there's a new buying strategy unfolding whereby a buyer will offer an amount that is deliberately well above what the property is worth so as to blow everyone else out of the water. The high offer gets accepted, the buyer then has a bank valuation done which comes in a lot lower than what the buyer has offered. The buyer then uses this valuation as a negotiating tool to bring the price back down, arguing that no one else will be able to pay more than this amount and the seller accepts the revised offer.

So in plain terms, let's say a house is listed at offers over 320k. Top offer currently 360k. Someone then offers 430k to scare off the competition. Valuation then comes in at 350k. Revised sale price back to 350 - 360k but without anymore competition. Somewhat risky tactics but I guess it stops people overpaying in a silly market, provided the seller cracks and accepts the bank's valuation as gospel.

 

[Gorillas]

Prices are going crazy in the gong especially around the shellharbour area, very basic houses now asking mid $300k to $400k range and anything new ( flinders / shellcove) is at least in the $500-$600k range even higher - Houses even selling in $600k to $800k range in those newer suburbs.

Considering there is bugger all job creation in the area at the moment and plenty of unemployment, the growth is getting ahead of itself. Ask any tradie or industrial worker in the area and they are really worried about their employment.

The whole region (wollonging/shellharbour) is developing nicely to move away from its industrial past ( wollonging CBD developments and marina etc) but not sure if the current growth is sustainable in the short or mid future.

 

[womble66]

...ok so things are getting silly in Wollongong. Hmm.

Prices are going crazy in the gong especially around the shellharbour area.

Yes Michael & Gorilla, its got hot in the Gong.

Friends listed on "net only" on Wednesday and sold today even before they got a sign in the ground without a B&P and with a signed 66W. Nothing special, a small 4/2/1 but renovated. Had an open house planned for Sat but a dozen groups turned up on Thurs for an unscheduled inspection due to interest. Apparently had a few offers but they went for one that was unconditional and well over the "offers over" price. The "Sold" sign went up tonight for the photo and advertising for the out of area agency.

Houses in my area (Horsley) seemed to have gone up about 30% in just over 2 years which is just ridiculous. When I bought this house in late 2013 I was also looking at a block of land in Flinders (near Shell Cove) for $225K to build a new std project 4/2/2 for about $300K (didn't as it was an extra $100K as a package) and today I saw a similar block with a std project 4/2/2 newly listed for offers over $720K, so +$200K or 40% increase in just over 2 years which is insane.

 

[edroy]

Hi There,

Whats everyones thoughts on investing in Wollongong or Gosford? im looking to buy a unit atm and trying to work out whether my money is better spend in a regional hub then in Sydneys West.

I know they are reducing the size of the steel mill in Wollongong but have heard they are creating employment in other areas.

Also IF(big IF) this high speed rail goes in id say we will be seeing some rather large CG increases in both these areas.

Just fishing for opinions and any info as im not too familiar with these areas.

Cheers

hi,
i've got an IP in umina, and have been watching with interest the captial gain since 2009.
paid 290k for a fibro shack near the beach and got offered 620k for it this week. so bottom line prices in gosford area are going through the roof as well.
i reckon it's probably way too hot already and may not attract much more gain in the coming years.