Wollongong - Southern Suburbs

[sash]

Hi there

I am in the process of buying a house or two in the Southern Wollongong suburbs such as Oak Flats, Warilla, Barrack Heights, Barrack Point, Albion, Lake Illawarra.

The houses (3 brm, 1 bth) I am looking at are priced around the 245-250k mark amd will potentially rent for 310-340pw given the low vacancy in some of these areas. They are also close the Shellharbour Centro and Hospital.

Can anyone offer me insight into these suburbs? How good are they...do they offer potential, etc.??

 

[chilliblue]

Where are you researching the rentals?

 

[bene313]

Isn't Devo down that way?

 

[sash]

Well I have a confession to make...I bought something at auction ...bought it for $246.5k after a hard contest of throwing $500 bids. .....I think I drove the other buyer nuts...could not see him/her as I did it over the phone.

Property is in the Barrack Heights ...there was another one a brick house but the street was shocking. The property will rent for $310-340pw with very little work needed.

Very properties under $310k in the okay parts of Barrack Heights.

Hope to have this deal sorted before I head off on holidays on 25th Feb. 2011.

 

[womble66]

Southern Wollongong suburbs such as Oak Flats, Warilla, Barrack Heights, Barrack Point, Albion, Lake Illawarra.

For me the pick would be Oak Flats. Its east of the main road (Pricess Hwy) closer to the lake and is mainly older houses. Be careful the are some industrial areas and also some busy roads used to transit through the area. Oak Flats is close to rail and freeways to the north and south and is services by the local buses. As you state its close to Shellharbour Square (Stocklands not Centro) which is about to undergo a major revamp. The hospital although major to the area is relativtely small so to me not a real draw card. These areas are all about 25min to the CBD of Wollongng by road.

Albion Park Rail and Albion Park are both west of the main road (Princess Hwy)and would be my next pick but maybe not in your price range. The "Rail" is closer to the main road and railway while the "Park" is closer to the mountains and has a lot more newer areas however above your price ranges. Like most areas there are good and bad areas but mainly in the "Rail". Ussually the price is a good indicator as if it seems cheaper than others then theres a good chance it has issues that could relate to its location in these areas.

To me Warrilla, Barrack Heights, Lake Illawarra, Mt Warrigal are all similar and contain alot of NSW Housing and ex Govt houses and there are areas there that definitely have issues relating to anti-social behaviour etc. Saying that there are also nice street in all these areas but no for me i'm afraid but probably the only areas in your price range.

Barrack Point and areas of Warrilla and Shellharbour are closer to the beaches and are nice but in you price range you may struggle to find a house that meets your needs.

Shell Cove, you will get a block of land, maybe.............

The houses (3 brm, 1 bth) I am looking at are priced around the 245-250k mark amd will potentially rent for 310-340pw given the low vacancy in some of these areas. They are also close the Shellharbour Centro and Hospital.

I recently helped a mate research these areas to buy the same as an IP but ended up at Horsley (West Dapto) for $340K and now gets $400w so they are around.

In you price range we didn't see much other than older (40+yr) fibro shacks that needed demo or extensive reno, smaller old villas or the ex Govt house where the areas were not great.

The vacancy rates are low in all of wollongong/shellharbour area with most places that are competively priced being snapped up quickly. Mates house went in 3 days.

The only drawback with some of the areas like Ablion Park is that Captial Gain has been relatvely low with many houses we looked at having been sold previously in the last 4-5 years for not much more that the asking price today. For example this house was PI at auction for $365K offer upto $370K post auction but rejected by vendor but now on listed for sale at $370K. needs plaster work to some ceiling and painting etc but sold in 2007 for the same price. Saw many like this in our search.

http://www.domain.com.au/Property/For-Sale/House/NSW/Albion-Park/?adid=2008622297

The best idea would be to spend the time and have a drive around to get the feel for the areas.

If you have addresses I can provide you some specific feedback with a drive by as I am in the area every day.

Just for perspective, I own and live in my ex Housing house in a not so nice area of Wollongong (Unanderra=Struggletown, had Polair 100m above my house a few weeks ago and always makes the headlines in the paper everyweek but thats another story) and own a $400K IP in the Shoalhaven so have no axe to grind in my assesment above.

 

[sash]

Thanks for you detailed post....very imformative.

I think you are right about the Shopping Centre being a Stockton instead of a Centro.

I like the lower priced areas as they have more potential to rise in value. A per my post above I ended up buying in Barrack Heights for $246.5K....very little work needed.

You are right about prices not going up...but I suspect that these will push up shortly given the low vacancy rates.

I am going back down on Sat to check out the place I bought and intend to also look at a Commercial Property in the region.

For me the pick would be Oak Flats. Its east of the main road (Pricess Hwy) closer to the lake and is mainly older houses. Be careful the are some industrial areas and also some busy roads used to transit through the area. Oak Flats is close to rail and freeways to the north and south and is services by the local buses. As you state its close to Shellharbour Square (Stocklands not Centro) which is about to undergo a major revamp. The hospital although major to the area is relativtely small so to me not a real draw card. These areas are all about 25min to the CBD of Wollongng by road.

To me Warrilla, Barrack Heights, Lake Illawarra, Mt Warrigal are all similar and contain alot of NSW Housing and ex Govt houses and there are areas there that definitely have issues relating to anti-social behaviour etc. Saying that there are also nice street in all these areas but no for me i'm afraid but probably the only areas in your price range.

The vacancy rates are low in all of wollongong/shellharbour area with most places that are competively priced being snapped up quickly. Mates house went in 3 days.

The only drawback with some of the areas like Ablion Park is that Captial Gain has been relatvely low with many houses we looked at having been sold previously in the last 4-5 years for not much more that the asking price today. For example this house was PI at auction for $365K offer upto $370K post auction but rejected by vendor but now on listed for sale at $370K. needs plaster work to some ceiling and painting etc but sold in 2007 for the same price. Saw many like this in our search.

http://www.domain.com.au/Property/For-Sale/House/NSW/Albion-Park/?adid=2008622297

The best idea would be to spend the time and have a drive around to get the feel for the areas.

If you have addresses I can provide you some specific feedback with a drive by as I am in the area every day.

Just for perspective, I own and live in my ex Housing house in a not so nice area of Wollongong (Unanderra=Struggletown, had Polair 100m above my house a few weeks ago and always makes the headlines in the paper everyweek but thats another story) and own a $400K IP in the Shoalhaven so have no axe to grind in my assesment above.

 

[BV]

Isn't Devo down that way?

I believe he's in Nowra

 

[Joshua06]

Know the area very will, currently renting out my place as I am moving away for work. Before xmas rental apraisal was $430 pw now it the agent has told me I can get $470 to 480 pw.

Of the areas this is my opinion;

Oak Flats - may find some value in one of large pieces of land which has a crap house for future development, however apart from that is quite expensive
Warilla - I see a lot of value in Warilla in the older areas. The house on the beach are now millionares row so no value there. But in the ex housing commission areas I have noticed some houses are slowly being knocked down and rebuild. Just before the GFC you could almost get a neutral property but the first home buyers grant killed this. Personlly if I had some cash I would look at around Giraween, Thomas and Beaton etc for a ***** box for future knock down and rebuild - it has good size blocks and potential views. Once people look further the shell-cove and flinders I think this area will have some potential. But there are some crap areas also. When looking for first property we looked at a property at Wall street, the baclk deck had lake views and was quite nice, but the rear back door neighbour have grass one metre high, several used cars not all the windows smashed. But things are improving
Barrack Heights - some good areas, but would be carefull of the areas near the square
Barrack Point - unless you have lots of money don't go their
Albion - would not buy here as there is no value, basically all the new areas are around the same price as Shell-cove and Flinders which are near the beach
Lake Illawarra - prices have increased funny how this area is basically warilla but becuase of the name houses are valued higher.

Basically for the first home buyers grant there was starting to be some good value in the area with lots of property in the 250k to 300k but harder to find properties in that raneg now.

Also with your property especially in the price range make sure the property manager is very selective.

Another area in the Illawarra with potential is Berkeley, but I will leave that for another post

 

[wildrahil]

how about port kembla?

 

[Joshua06]

how about port kembla?

I would say the value has left Port Kembla, about 5 years ago you could pick up something quite cheap.

 

[sash]

Good stuff Joshua....good to hear some local Wollongong feedback.

Just got off the phone with my potential PM and she has had 4 enquires on the property. It has been on the net less than 6 hours.

You mentioned that Berkeley is good value ...why? Also...what about Lake Illawarra? It looks like there are some good buys about.

Where are your properties in the "Gong"

I would say the value has left Port Kembla, about 5 years ago you could pick up something quite cheap.

 

[Joshua06]

Good stuff Joshua....good to hear some local Wollongong feedback.

Just got off the phone with my potential PM and she has had 4 enquires on the property. It has been on the net less than 6 hours.

You mentioned that Berkeley is good value ...why? Also...what about Lake Illawarra? It looks like there are some good buys about.

Where are your properties in the "Gong"

I am actually renting my home out at flinders as I am moving away for work. Not much happening on the investing front at this stage, due to young family and partner who's life goal is to retire with nothing apart from super and a home. Ha ha But always looking to kept a pulse on the market for when the time comes again.

I am referring the older part of Berkely not the newer estates. Not to sure about rental yields for Berkely, but reckon there could been some strong growth in the area for long term investors. The area has alwasy had a bad reputation and lots of home commission houses. But the home commission houses houses are being sold off. It has some good facilities, a club, pub (which has a bad rep but has been renovated), bilo and near the lake. The council has slowly been improving the lake surroundings There are some walk ways and parks on the lake, which are good for familes. Also it has very easy access to the high way for Sydney commuters. It is also close to Port Kembla beach which in my opinion has the best pool and facilities in the Illawarra. Just having a brief look at what is on offer there is a few properties nothing flash under $300,000 (even the next price bracket), but on good size blocks and rentable homes, which would be the cheapest in the Illawarra. A bit of a rough diamond. Have a look at the stupid prices people are paying for homes at Haywoods bay !!! there is nothing there, the blocks are small and would hate to been there if the lake ever flooded. Over all Berkely is bit of a rough diamond

 

[sash]

OK...thanks.

Will check things out....

I am referring the older part of Berkely not the newer estates. Not to sure about rental yields for Berkely, but reckon there could been some strong growth in the area for long term investors. The area has alwasy had a bad reputation and lots of home commission houses. But the home commission houses houses are being sold off. It has some good facilities, a club, pub (which has a bad rep but has been renovated), bilo and near the lake. The council has slowly been improving the lake surroundings There are some walk ways and parks on the lake, which are good for familes. Also it has very easy access to the high way for Sydney commuters. It is also close to Port Kembla beach which in my opinion has the best pool and facilities in the Illawarra. Just having a brief look at what is on offer there is a few properties nothing flash under $300,000 (even the next price bracket), but on good size blocks and rentable homes, which would be the cheapest in the Illawarra. A bit of a rough diamond. Have a look at the stupid prices people are paying for homes at Haywoods bay !!! there is nothing there, the blocks are small and would hate to been there if the lake ever flooded. Over all Berkely is bit of a rough diamond

 

[Joshua06]

Beach side of Lake Illawarra isn't cheaper. If you are referring to Lake Illawarra on the oposite side on the main rd (non beach side), I would look at houses in Warilla which boarder Lake Illawarra. They seem to be cheaper becuase they are in 'Warilla' not Lake Illawarra, however prices have increased a bit since the GFC

 

[womble66]

had a bad reputation and lots of home commission houses

Berkeley had and still has in some areas, that don't call it 'bezerkley' for nothing. I would say anti-social youth behaviour is the areas main issue with local boyz tagging the PC 2506 on most structures shich is similar to Warilla where its more common to see 2528 tags everywhere.

That being said my son brought in Berkeley last year in an ex HC that had been privately owned 3x1x1x with a small extension making 2 living areas, bathroom updated and cladded on ~600m2 for $285K. I think with an update to the kitchen $350+pw would be acheivable if rented.

 

[aspiring1]

I am actually renting my home out at flinders as I am moving away for work. Not much happening on the investing front at this stage, due to young family and partner who's life goal is to retire with nothing apart from super and a home. Ha ha But always looking to kept a pulse on the market for when the time comes again.

I am referring the older part of Berkely not the newer estates. Not to sure about rental yields for Berkely, but reckon there could been some strong growth in the area for long term investors. The area has alwasy had a bad reputation and lots of home commission houses. But the home commission houses houses are being sold off. It has some good facilities, a club, pub (which has a bad rep but has been renovated), bilo and near the lake. The council has slowly been improving the lake surroundings There are some walk ways and parks on the lake, which are good for familes. Also it has very easy access to the high way for Sydney commuters. It is also close to Port Kembla beach which in my opinion has the best pool and facilities in the Illawarra. Just having a brief look at what is on offer there is a few properties nothing flash under $300,000 (even the next price bracket), but on good size blocks and rentable homes, which would be the cheapest in the Illawarra. A bit of a rough diamond. Have a look at the stupid prices people are paying for homes at Haywoods bay !!! there is nothing there, the blocks are small and would hate to been there if the lake ever flooded. Over all Berkely is bit of a rough diamond

Hi Joshua,
It has been a while since this post. What are your thoughts on Berkeley now? I am thinking of buying in the area.
Any input from those in the area or have IP there is much appreciated

 

[UrbanPlanner]

Any updates on Barrack Heights, Warilla, Shellharbour? Have been watching this market for a little while now but would be interested to hear what others opinions are on its growth prospects.

Vacancy is still very low, friend but bought a renovated place in Barrack Heights for $320k and was rented from day 1 for $385pw I think after agent appraised it at $360pw.

 

[Cherry Pro]

Folk here still investing in Wollongong

Hi - Know the Right Group has been buying up pretty big in Wollongong. Drove down there a few weeks ago and pleasantly surprised with the area, business activity etc.

How have people who have bought there fared so far ? I'm thinking the Gong will move shortly after Sydney...does any one else think the same ?