NSW First Investment Property Newcastle or Sydney

Discussion in 'Where to Buy' started by Lollie, 13th Oct, 2019.

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  1. Lollie

    Lollie Well-Known Member

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    My 19 year old son is looking to purchase his first investment property in hopefully Sydney or Newcastle. He has a PP in mind of $530k to $580K. Long-term buy and hold with the aim of good long-term capital growth. The yield is important, he doesn't want to put too much in himself. We thought about old low-rise units in Carlton,Kogarah,Penshurst, Mortdale however with units, the strata and additional expenses might mean he has to contribute too much, also the capital growth in those old units hasn't been all that good over the past 30 years, perhaps because of all the massive new developments in that broader area over the years. The rent over that time has increased pretty well though, to perhaps make a purchase there worthwhile. Also, where in Sydney and Newcastle is good for houses in his price range? Any advice and suggestions welcome :)
     
  2. Trainee

    Trainee Well-Known Member

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    Where did the deposit come from, and how much is he willing to contribute into the property? Is it really a limited income thing? Can he expect wage increases?
     
  3. Lollie

    Lollie Well-Known Member

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    He saved the deposit himself, he works in defence and lives on base. He has a 10% deposit plus solicitors fees etc. He will be eligible for the first home owner's assistance scheme if he buys in NSW, so he won't need to satisfy the requirement of living in the property to be exempt from paying stamp duty. I suppose he can expect wage increases, I don't know how much though. He often gets extra money for things like going out field.
     
  4. Aaron Duffie

    Aaron Duffie Well-Known Member

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    I’ve researched and bought my first IP in Newcastle this year and found Newcastle to have good long term prospects with the Uni opening in the CBD last few years, light rail opening last year and a diversified economy now. Yield is higher in Newcastle than Sydney. Definitely don’t buy a unit in Newcastle as there has been many developments completed/planned and you won’t get the capital growth you want. I suggest you search in Mayfield and surrounding suburbs for the price range you mentioned but will be at the top end towards $580k. Wouldn’t go further west than Mayfield if you are aiming for long term growth
     
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  5. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    You don’t say where his base is, but if it’s in Sydney, defence usually makes you live there. Is this the case for him?

    He’ll probably need to go Newcastle or Central Coast for his budget for a house on land.
     
  6. Lollie

    Lollie Well-Known Member

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    thanks for your advice Aaron, we'll look into those areas. Yes Alan he looked into this, he's based in Townsville, not a place he would ever buy in anyway and with his role he'll never be posted to Sydney or Newcastle.
     
  7. David Shih

    David Shih Mortgage Broker Business Member

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    With that budget I'm assuming he can only look at 1 bedder units in Sydney for the areas you've mentioned. I don't know Newcastle well enough to comment but if he can find a house in Newcastle with land component plus value add potential then I reckon it'll be worth considering.

    Although what's the rationale behind just limiting to Sydney or Newcastle?

    Cheers,
    David
     
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  8. Archaon

    Archaon Well-Known Member

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    Screenshot_20191014-202207_Realestate.jpg Something like this perhaps.
     
  9. Lollie

    Lollie Well-Known Member

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    There are older style 2 bed units in those suburbs for that price, but good ones are getting harder to find. We like Sydney and Newcastle for long-term growth. Newcastle would be good to get a house on a large block of land to split later or put a granny flat on perhaps but he may not be able to afford a 900sqm block that's not too far out
     
  10. Lollie

    Lollie Well-Known Member

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    Yes Archaon, that type of property is what looks good. Also, I wonder about the suburbs of Adamstown, Kotara Bradmeadow and Lambton near the Hospital or are they too far out? I will head down to Newcastle myself to have a good look once I narrow down the areas to focus on
     
  11. gach2

    gach2 Well-Known Member

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    Biased view from someone that would never consider an apartment

    Could be hard but what about a house + land in western Sydney

    Have seen a few in that budget between Blacktown - Penrith though may not be the flashiest property
     
  12. BuyersAgent

    BuyersAgent Well-Known Member Business Member

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    @Lollie if the goal is long term capital growth a house would normally be chosen in preference to a unit (not trying to start a global debate but in many cases houses offer a little more growth AND they offer renovation potential AND occasionally redevelopment potential). For your suggested locations I would suggest @Propertunity has a great track record if you want a BA to help.
     
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  13. Jazcat

    Jazcat Member

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    Hey mate,

    I was under the impression to apply for the first home owners asistance scheme you had to be on the NSW electoral role, i could be wrong but best to confirm with duties.
     
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  14. Lollie

    Lollie Well-Known Member

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    Yes, you are correct! and he is on the NSW electoral roll
     
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  15. Lollie

    Lollie Well-Known Member

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    I had thought of house land in western sydney but have no idea where to start. I had thought maybe out near the new airport in south western sydney area.
     
  16. Lollie

    Lollie Well-Known Member

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    I do like the idea of a house and land for the reasons you have mentioned. My son won't be able to afford a BA on top of everything else so we'll just have to do our own research and find the property ourselves.
     
  17. Aaron Duffie

    Aaron Duffie Well-Known Member

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    Those suburbs aren’t too far out but you wouldn’t find anything in your price range in those suburbs unless you’re prepared to do major Renos.
     
  18. samiam

    samiam Well-Known Member

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    these are pretty good suburbs- not far out at all - blocks may be smaller though
     
  19. Lizzie

    Lizzie Well-Known Member

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    Those suburbs are what you would call "outer edge of the inner ring" ... very desirable for those who cannot afford the inner ring itself.

    For your price range your probably looking more towards Cardiff, Charlestown, Mayfield, North Lambton

    Go to realestate.com.au and put in Newcastle-Greater Region then price range $550,000-600,000 ... there are only 8 pages to look at ... this will give you a clearer idea of what's in your range and where. I'd avoid anywhere like Maryland, Mount Hutton, Cameron Park, Boolaroo or Fletcher (personal choice) - I'm undecided about Elermore Vale as not sure how it's come up after the sale of the council housing

    Houses for Sale in Newcastle - Greater Region, NSW - realestate.com.au
     
    Last edited: 16th Oct, 2019 at 10:06 AM
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  20. Lollie

    Lollie Well-Known Member

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    Thanks Lizzie :)