NSW Home in new castle with long term plan for investment

Hi guys,

I was hoping to get some ideas about good locations for purchasing a property to live in in new castle for the next few years. I'll be working at John Hunter so should be within 15min driving distance. (can drive upto 30min if justified by other benefits)

I am planning on using it as an investment property after the next 2 years. From an investment perspective growth is more important than potential yield.

As for my living needs i'm pretty flexible. Although I wouldn't want to live in a large house on my own. Ideally looking for maybe a 2 bedroom town house.

I've been looking town houses/units/houses at lambton, kotara, islington.

To compicate things i'm currently working in brisbane plan to fly to sydney at least 3-4 times in the next 3 months to hopefully find a place. However, i know it doesn't really give much time to get feel for the area so am also contemplating using a buyers agents.

One of my worries is that I have read stories here and on other forums about varying construction quality of houses and don't want to purchase something which is going to end up needing a lot of maintenance work to be livable. However, I would not mind purchasing something with value add potential. Ideally I would like a property 10+ years old.

Any tips or suggestions would be appreciated.

As for budget it is about 500k. (probably have a bit more upward room but prefer to be conservative)

Thanks
Legolas

 

If it is for you to live in/ investment, better to be on the ground first. @Propertunity has enormous local knowledge and experience if you are going to use a BA.
Newcastle as a whole has moved a lot already but still some good buys if it is for long term. Small units are not very popular here unless close to water.
You should get within 15 mins from John Hunter with your 500k. Get closer to CBD if you can. In Newcastle, 30 mins is very very far
Most of Newcastle houses are old and yes in general if you buy an older house, there are some fun associated with it!
Also check Hamilton, New Lambton (exxy) Adamstown and Waratah.
Check Newcastle thread and locals/investors here too
@larrylarry @tomlemke @Raydar @drg86 @lightbulbmoment

 

Hey Legolas, 500k isn't going to get you a lot in Newcastle these days. If your focus is captail growth and your only planning on living in it for two years, I would be buying a house over a townhouse or unit something with land quantity. Buy as close to the cbd of Newcastle as possible. Their has been a Few sales in carrington for 2bd miners cottage have been around the 500k mark, for that kind of money tho I would be buying something in Mayfield /mayfield east / on a 450sqm2 + block with value add potential. Hundreds of millions are currently being invested in Newcastle, suburbs that border Mayfield eg Tighes hill / Wickham / Maryville/ Wickham have all seen huge growth. Have a look in the Newcastle forum on here, I posted plenty of information on these suburbs. I'm only trying to steer you away from units / townhouses because of the sheer amount of them being built. 4000 have currently been approved with up to another 6000 in the pipe line. If your still hell bent, I would look for a 2-3bd unit or townhouse in a small complex around Hamilton / Lambton / new Lambton / Adamstown / the hill / Cooks hill. I'm no expert hopefully Alan fox can weigh in on this subject better

 

Thanks for the advice so far.

I can definitely push my budget if there is more gains in buying a house. The 500k was more that I didn't want to spend too much on a unit/town house.

My absolute budget is probably 800k. Will need to double check with my bank this week. They may give me bit more.

As long as the place is livable don't mind a bit of fun in the long term but would like to avoid hassles with urgent repairs et while I live there. (Both to make my life easier but also from a tax perspective)

 

Agree with @tomlemke, for that 500k sweet spot can't beat Mayfield and there is a variety of stock available from full blown reno, DYI and move in ready. The price will reflect that as well. Mayfield is so central and has great public transport, you could even catch the bus from Mayfield to the Hospital given parking is a huge issue there. There is a nice community spirit in the suburb which has numerous events held to promote it. Maitland Road is your friend. Being a well established suburb, you have all the services you will ever need, shopping, doctors, dining out and coffee

 

If you are looking at properties with best chance of good CG, you'll be looking at suburbs close to city such as New Lambton (young families in good school catchment), Hamilton, Carrington, Cooks Hill and perhaps Tighes Hill. Mayfield is definitely getting noticed.

 

I'd be looking in Lambton and New Lambton. Good growth and desired buy families which will push further strong CG into the future. Also agree with the guys that Mayfield is exceptional value for it's location, be it a bit further from the JH. I also like Waratah area.

Wherever it is you buy, go for large lot, high side of St, and a house.

 

Thanks for the tips so far.
Is new lambton heights a good suburb too?

 

Yes it is

 

If you're working at John Hunter, then New Lambton, Lambton, Adamstown, Georgetown, Kotara etc are all an easy drive. It depends if you are working night shift and driving rather than catching public transport which means you have options a little further out to say Mayfield and surrounds. New Lambton Hts is not as popular as it once was due to the streets becoming a free car park for the Hospital Precinct.

A few trips down will help you get a feel for the areas but probably won't get you a purchase, due to low stock levels and high demand. Even as BA's it is taking us 2-3 months to secure a decent property .....and we live nearby and know what we're doing!

 

That's a lot of units for the town size of Newcastle Is it all spread out or concentrated around CBD? Any link? Would I find these info on council web - just look through but wasn't clear to me

 

Will be driving so staying a little further out is no problem, which does give more options.
I think i've decided against buying unit/town house as it will offer less capital growth long term.

I've had a couple of trips but they have been short not long enough to get a good feel of the area. Will plan a few trips in the next month.

 

Not the best source I'm trying to find the interactive map you could click on to show you proposed new developements. "The Property Council, which represents developers, estate agents and other businesses associated with the property industry, estimates that more than 3000 units (housing 6000 people) have been built in Newcastle’s centre since 2012 or are in an advanced planning stage. Another 3000 could follow in the next seven years." Who’s buying all the units? Another interesting article. ‘Hunter City’ gets the chop

 

Is there a difference between mayfield , east and west?
Prices seem bit cheaper in mayfield west

 

Mayfield east is closer to CBD, trendy
West is less favourable closer to industrial and prices reflect this too

 

100%

 

Mayfield, Mayfield east and Mayfield west is massive suburb last count was over 8000 homes. Mayfield east is the most desirable part, which finishes at Ingal street. As others have mentioned it's close to cbd and has a lot more home owners. Stock is extremly tight, lucky to see more than 1 home on the market at a time. I would happily raise a family their. Then it turns into mayfield, the further west you go the less desirable it gets. The south side of Maitland road is probably the 3rd best spot, the closer you get to Woolworths the more housing commission you will come across. Plenty of good spots in Mayfield just avoid getting to close to the train line. If you want to p.m anything you are looking at, I know the area like the back of my hand so happy to let you know my thoughts on stuff you are looking at. Houses are selling extremely quick most places are going under offer if priced well in the first week.

 

Mate I would consider something like this one:
20 Hill Street North Lambton NSW 2299 - House for Sale #123911786 - realestate.com.au
List price is $650k.
I actually almost bought this about 3 or 4 years ago before the reno was done.
Over 1000sqm block...hello subdivide!
High side of street with views.
Desired area, walk down to Lambton shops and park
5 garages...do you have toys?
So I see this as a great place to live in for a couple of years, then when you're done take out those sheds and build another house at the back. Manufacture growth + huge yield if you keep both.
Just my 2c

 

I like the hill street, especially even numbers - on high side with good views
Good streets at North lambton are catching up. Lambton and Waratah (closer to Lambton) are family friendly suburbs. Little CG at Waratah West, Mayfield West, areas closer to Uni. Stay away fr Jesmond unless well priced big land

 

That looks like a nice property. Thanks for the tip. Will definitely check it out.

I have heard mixed reviews about North Lambton esp Lambton as area in terms of crime rate/safety, is my only concern.