NSW Muswellbrook - outlook & choice between two houses

Hi all,

We have a client who is looking to buy a residential investment property through his SMSF; he's had two offers in Muswellbrook accepted, but was hoping for some opinions on both the area and the two house options. I don't really know the area well, so figured I'd post here for him.

Firstly for the area - the past year seems to have provided good growth for Muswellbrook, after a period of losses, so what do you guys think? Has the market there bottomed and is now recovering? Decent outlook for growth?

Secondly, the two properties he has had offers accepted on are:

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1.) 21 Jeans St, Muswellbrook
21 Jeans Street, Muswellbrook, NSW 2333 - View Sold History & Research Property Values - realestate.com.au
* Offer accepted for $300,000
* RPData automated valuation of $283k (price range between $252k and $314k with an 11% forecast standard deviation)
* Estimated rent = $330 - $350 per week

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2.) 14 Chivers Circuit, Muswellbrook
14 Chivers Circuit, Muswellbrook, NSW 2333 - View Sold History & Research Property Values - realestate.com.au
* Offer accepted for $333,000
* RPData automated valuation of $342k (price range between $313k and $370k with an 8% forecast standard deviation)
* Current rent = $360 per week, but market rent likely similar to Jeans St

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Any opinions or advice you guys could provide him would likely be greatly appreciated.

Thanks in advance!

 

I presume you are looking for good capital growth with a property in a SMSF. There would be many better options in my opinion. I’d avoid mining towns for investment like the plague.

 

they are terrible investments...........

if you can forsee or expect some sort of mining growth or boom, it will be great,

but unless they know something I dont..

 

These have been off and on the market for awhile and tes the house prices have been riding very slowly there .

I was once going to buy in Tobruk ave

But finding renters is hard enough

 

My limited experience with the area is that it's economic activity is hedged purely into the Mt Arthur mine by BHP Billiton and a few smaller mines. When the mines ramp up, so does the rental demand. Speaking with people in the area they have said it is a very cyclical place.

 

With the continuing improvements to the road between Newcastle and Muswellbrook people will have more choice between living in the valley or nearer the coast.

 

I remember a ex Housing Commission house in Tobruk Ave Muswellbrook going for $105k a few years ago now there advertised at 150k

Too much in my opinion for 70’s ex houso’s