Wollongong Area

[MF35]

I'm looking at Wollongong for potential IP purchases. Probably a house in southern suburbs of Wollongong around the Unanderra / Figtree area.

Anyone with any local knowledge or experience investing in this area who might be able to comment?

In particular, what the rental demand is like and what type of premises rental demand is for.

What do you think about potential CG in these areas?

It seems to me the southern suburbs are the poor cousin to the northern suburbs. Some of these areas seem to have all the basic conveniences relatively close bye, have the train line, schools and uni not to far away, are not to far from Wollongong city (by Sydney standards anyway). There is also new retail construction going on in some areas (shopping centres or at least new large supermarkets). It's probably already happened in Figtree to a large extent.

Being closer to BHP would be the main negative I can see.

So what do others think?

MF

 

[JoannaK]

You're right MF35,

the southern suburbs are the poorer cousins of the northern suburbs, but in my opinion, there are some great opportunities there. I do know that little pockets around Figtree (near westfields) have become quite popular with developers and investors.

You'll have a problem with schools in Unanderra...they demolished the old school I used to attend and turned it in to a retirement village.....so I don't know where the closest school is now....maybe Farmborough? The school in Figtree have always had good reputation.

Being close to BHP is neither here nor there when it comes to wollongongites...they've grown up with it, and it's there. Besides, BHP is in Port Kembla about 20 to 30 minutes away (which, to wollongongites is quite a fair distance), not near the city or fringe suburbs. If you were to start mentioning Warrawong or Cringilla, then i'd be commenting about BHP.....and BHP has already closed many of it's smelters (I think they're called), I believe they only have one operating now, and will be looking at closing down completely in the next few years.

Demand for good quality houses in any area fringing the city is always high as there seems to be limited supply. 3 bedroom houses around the $220 to $250 per week mark seem to be most popular and sought after.

Another area worth considering would be Coniston.

Hope this helps.

 

[damianr]

We have a IP house in Mt Warrigal that has shown about 30% growth in the last year or so. We aren't experts in the area but infact have inherited this house with other members of the family. Buying them out shortly with a view to keeping the house in the family as long as the figures stack up which look like they might.

The house itself is a **** hole (but 3B 1B, double brick and tile, double garage) thus we will need to spend $20 - 30k renovating it to bring it up to a livable standard. Will then get about $230 - $250 which will go close to covering the repayments nicely.

With my limited knowledge of Wollongong I would say buy as near the beach or lake as poss, buy the worst house in the best street, look out for services/shops/school to be nearby. There seems still be some bargains around particularly if you don't mind doing a few minor cosmetic renovations.

Damo

 

[MF35]

Thanks JoannaK and Damianr for your replys,

My Fiancee grew up in the area so I've got access to a bit of local knowledge from her and the 'in laws to be'. I've also watched the area for a while and it seems a pretty good long term prospect for CG to me. And although would be neg geared would not be as severely neg geared as Sydney properties would be in my area. Also fits in my buying budget which helps. Now I just need to get my Trust set up and work out where the most appropriate pockets of housing are. Once I've got pre-approval on a loan I'll start looking at individual houses as prospects. See how we go.

Thanks,

MF