Top Ten Capital Growth

Hey all,

Just thought i would share a report with you that predicts top ten areas for capital growth over the coming years.

Geraldton WA
Gladstone QLD
Joondalup WA
Kingaroy QLD
Newcastle NSW
North West Precinct NSW (Gunnedah, Narrabri, Moree)
Orange NSW
Port Adelaide Precinct
Portland VIC
Victor Hrabour VIC

What is everyones thoughts?

Agree/disagree with any in particular.

He seems extremely confident of Geraldton doing big things (even though it has obviously already gone ahead already)

Any opinions on Gunnedah/Orange???
 
....Just thought i would share a report with you that predicts top ten areas for capital growth over the coming years.....Newcastle NSW.....What is everyones thoughts?

I can't comment on the rest, but Newcastle is my stomping ground and it has powered ahead since the end of last year (2008) - so I see it happening before my eyes. :)
 
Geraldton

I can see all the reasons why they are saying Geraldton for future growth but the town will need a major makeover in the commercial precinct. It is tragic for a regional centre.

The foreshore upgrade is a step in the right direction but they need to keep the momentum going. Unless they do I just do not see it as an attractive place to live.

I was there recently for a week. Maybe I missed something?

Interested in others thoughts.
 
Yeh have been having a bit of a closer look at Orange (closer to home)

Seems like you can pick up a decent 3 bedder for 250 - 300 that will rent for about $250-$300 week.

The only problem is sounds like crime is a bit of a problem.

Anyone have any thoughts on this? Areas to buy, areas to avoid?
 
Yeh have been having a bit of a closer look at Orange (closer to home)
Seems like you can pick up a decent 3 bedder for 250 - 300 that will rent for about $250-$300 week.

Daniel,

The numbers you have quoted here only represent the 'standard' 5% yield.

You can get that in Western Sydney or Newcastle easily enough. Newcastle has close to 500,000 people living in it. Why go out to the sticks for a 5% yield? :confused:
 
In regards to Geraldton quoted from Terry Ryders top ten from forecast,

The big kicker for Geraldton is the proposed
Oakajee port and associated rail facilities.
This is a $4 billion project and looks
increasingly certain to go ahead.
....
Makes sense!
 
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I can't comment on the rest, but Newcastle is my stomping ground and it has powered ahead since the end of last year (2008) - so I see it happening before my eyes. :)

i'd agree - been watching units out of interest (wishing the banks would lend more) and old, needing cosmetic reno jobs have increased by around $20-40k in the last 6 months or so. i also noticed that any half decent house in a good location is getting snapped up within days for, or above, asking price.
 
p.s. been to victor harbour a couple of times and it is a really lovely coastal township within commute to/from adelaide. not surprised it's powering ahead.

problem is, by the time these reports come out, you've usually missed the first half of the upswing.
 
Market Value

I have seen a number of times on the forum the reference to below property value when looking in different locations. How do you determine that?
 
I have seen a number of times on the forum the reference to below property value when looking in different locations. How do you determine that?

Hi Samantha,

Property value is determined by comparable sales - not just one, but a number of comparable sales - 3-6 month recent sale, similar property, similar price.

Sometimes you are able to purchase below value because of a few different factors:
1. Distressed seller
2. Unattractive property that could be made to be worth more with a cosmetic reno
3. Lack of knowledge of the vendor. i.e. sitting on a sub-dividable property but selling as a normal house block
4. Out of area agent selling a property who is unaware of values in the area
(We recently paid full asking price for a property because it was listed a minimum $10-15K below market value by an out-of-area agent)
5. Conditional sales - vendor will sell cheaper if thay can do 'xyz'
+ a few others I'm sure.

Buying like this allows you to lock in some equity at purchase or at least defray some of the transaction costs i.e. stamp duty.
 
Thanx Propertunity

I have started looking for these properties and have been having fun exercising my negotiating skills in finding them.
 
2. Unattractive property that could be made to be worth more with a cosmetic reno
currently renovating one of those. was filthy and overgrown. the vendor apparently had had two low offers the same as ours but turned them down ... then they saw their dream home and wanted a sale.

3. Lack of knowledge of the vendor. i.e. sitting on a sub-dividable property but selling as a normal house block
bought one of those a few years back, subdivided and doubled the value in 18 months.

4. Out of area agent selling a property who is unaware of values in the area
bought one of those too - it is now our townhouse development site. we had offers to sell for 20% more than what we paid, even without da and cc approval.

they are there - just have to know what you are looking for and pounce quickly.
 
lizzie...
how were you able to find this sub-dividable gem?

everything here that even looks like it has a remote chance of rezoning or has a big enough block size for subdivision seems to be reaching for the stars with price.

any tips/guides would be greatly appreciated
 
Sometimes you buy cheap because it's been raining really hard that day and the Grand Final is on and there's 8 people at the auction. Oh and having an agent who says "rental should be around $400 if you're lucky" helps, when the same property next door is actually renting for $650.
 
lizzie...
how were you able to find this sub-dividable gem?

everything here that even looks like it has a remote chance of rezoning or has a big enough block size for subdivision seems to be reaching for the stars with price.

any tips/guides would be greatly appreciated

purely pot luck - knowing what i was looking for and in a position to pounce.

came up as new listing on r/est.com - which i check at breakfast every morning. very out of town vendor - out of area agent. advertised for below market value. rang the second i saw it and booked appt to see the next day. had my practically full price written offer done up for when i went and submitted it there an then - only condition was site survey confirming that what was actually being visually offered was what was actually being sold. vendor accepted by lunchtime. vendor had two other higher offers later in the week, but decided to honour the one they had accepted (mine) - i'm really grateful - and the deal was done.

came down to being in a position with everything lined up (finance etc) and not being afraid to make bold decisions.
 
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