Wollongong / South Wollongong

We're in the process of finalising our next purchase in the Gong and while our numbers stack up pretty well - rental yield over 8%, just curious to find out what people's experiences (in terms of capital growth) have been in the area.

The area seems pretty nice with proximity to the beach, shops, hospital and other amenities.
 
Cherry Pro
Don't know the area, however I want to congratulate you on achieving such a great yield for resi property, hard to achieve this with commercial at the moment. Fantastic:)
 
I have one in Barrack Heights....bought for 242k in 2011...rents for $375pw...and is now worth around $335k....

The shopping centre is being refurbished and a lot going on down there.
 
Hi Cherry Pro,
I know someone that has purchased a unit OTP in the 'gong as a ppor and there pretty happy with location and that they've achieved some cg.

Alot is happening around the 'gong and imo under the radar.

Cheers Spades.
 
Thanks Spades and Sash for your updates. Am sure we'll see some good growth in the area as Sydneysiders move to the Gong for a sea change.
 
Hi AllGood

Lake Heights - since you would know the area well would you care to share some information ?

Also, some heard from some friends only yesterday and they have have bought in Warrawong and are pretty pleased too.
 
I would say that the current market conditions would see some short term gains.
My sister is trying to purchase around Corrimal. Viewed a place just on the market, offer excepted and then got guzumped. Hardly any stock around. They are struggling to find a place.
 
Hi Cherry,
I live about 45 minutes south of Lake Heights and while I know the Wollongong area reasonably well to travel through, I havent researched it's investment potential too much - just started looking at it actually because I've got pre-approval to go again. I've noticed some pretty good yields around Lake Illawarra which is traditionally a lower SES area, as are places like Warilla, Windang. Once upon a time Dapto had a bit of a rep of being roughish, but with a lot of new development in the area I think it's shaken off that image.

As someone mentioned the Shellharbour Shopping Centre has just had a huge makeover with the addition of Myer and other reputable retailers, so that has to have a positive impact on prices, especially in areas like Warilla which are right next door. Someone also mentioned Barrack Heights, which I think will do okay because of Stocklands, and again it has a lower entry point.

I know a few people who have done very well out of units in North Wollongong, although that's a very different demographic. 12 months ago there were a number of unit complexes or duplexes for sale in the Gong with 7%+ yields but I wasn't ready to go at that stage.

I think for something like yours that pays for itself, you cant go wrong in the long term - now you just have to find me one :D
 
... and Warrawong is also close to the new Stocklands but has the benefit of being closer to the Wollongong CBD so that's got to be a good thing!

Where are you based at Cherry Pro??
 
Funny how I read this, a year ago, a thread on
This topic was holding Wollongong in a negative light and no one was touching it, there would of been good deals to be then
 
Hi AllGood

Good to hear that you are ready to go again. I think you won't go past a dual occupancy in the area. We're Sydney (north) based investors so the trip takes us close to 2 hours. We're spending couple of days after Christmas at our place there and have friends coming through, we intend to explore the area a bit more.

I actually bought off the bat from a recommendation received at a Right Group meeting (they are a Sydney based buyer's agency) and they are buying in Wollongong given that the yields are still good as compared to Sydney.
Like I said in a previous post, our friends (Syd investors) bought in Warrawong round the corner from us. Theirs is a 3 bedroom home with a 2 bed granny flat and similar yields to ours.

So keep looking - something will pop up soon.

Milkezen - the saying 'buy straw hats in winter' would definitely hold true for the Gong. I was speaking to the neighbours at Lake Heights who bought a similar property to ours only in May 2013 for $35,000 less that what we paid, so the deals would have surely been better then but I think there's still room for movement.
 
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