NSW Newcastle 2018

Discussion in 'Where to Buy' started by tomlemke, 26th Jan, 2018.

Join Australia's most dynamic and respected property investment community
Tags:
  1. krispy

    krispy Well-Known Member

    Joined:
    27th Oct, 2015
    Posts:
    230
    Location:
    Sydney
    I know of a few friends who just cant get finance even with big equity. It definitely stopped a few peoples investment journey. Where I live in Parramatta I have noticed houses with land still selling for crazy prices yet there is a defiant slump in unit sales. Maybe like Parramatta its those who dont rely so much on the banks still buying in Merewether. I still notice places like Gateshead keep on going up though as well. Maybe thats the first home buyers in that area?
     
    TylerJamesson and larrylarry like this.
  2. lightbulbmoment

    lightbulbmoment Well-Known Member

    Joined:
    21st Jun, 2015
    Posts:
    959
    Location:
    nsw
    @TylerJamesson how did you go renting your place and for what price?

    Looking for some feedback on the rental market.
     
    TylerJamesson likes this.
  3. Ald

    Ald Well-Known Member

    Joined:
    6th Jul, 2016
    Posts:
    775
    Location:
    NSW
    In Newcastle you have record low vacancy and record high rents being achieved
     
  4. lightbulbmoment

    lightbulbmoment Well-Known Member

    Joined:
    21st Jun, 2015
    Posts:
    959
    Location:
    nsw
    Yes i have noticed rents are looking high. Seeing standard houses in the inner and middle ring asking prices 600 to 800. In 6 months toying with the idea of packing up shop and heading off travelling.
     
  5. lightbulbmoment

    lightbulbmoment Well-Known Member

    Joined:
    21st Jun, 2015
    Posts:
    959
    Location:
    nsw
    Egs of rent on the high end
     

    Attached Files:

    Micko likes this.
  6. krispy

    krispy Well-Known Member

    Joined:
    27th Oct, 2015
    Posts:
    230
    Location:
    Sydney
    We have recently been able to put up our rents after a long gap and people still offering more. More lake Mac area than Newcastle though. No vacancy time. Rental market seems strong.
     
  7. Micko

    Micko Well-Known Member

    Joined:
    11th Jan, 2017
    Posts:
    245
    Location:
    Newcastle
    Just do it @lightbulbmoment Everything will be here when on get back. Where are you thinking of going? Europe?
     
  8. Micko

    Micko Well-Known Member

    Joined:
    11th Jan, 2017
    Posts:
    245
    Location:
    Newcastle
    $800 per week rent at New Lambton seems like a lot....house repayments probably wouldn't be much more than that there.
     
  9. TylerJamesson

    TylerJamesson Well-Known Member

    Joined:
    15th Feb, 2016
    Posts:
    409
    Location:
    Australia
    It’s been leased for $565 a week. Took about 2 weeks to find a suitable tenant. Couple who secured it wanted it due to proximity to Hamilton and lower commute times to work.
     
    lightbulbmoment likes this.
  10. Lizzie

    Lizzie Well-Known Member

    Joined:
    9th Jul, 2015
    Posts:
    9,618
    Location:
    Planet A
    Interesting read so thanks all for contributing.

    Ah - the old shud've could've would've ... 20 years ago sold in Cooks Hill for $180,000 and thought I was doing good - could've put a extra "0" on the end of that nowadays.

    Six years ago sold out of Merewether and, although I miss Merewether, I miss the Merewether of 6 years ago - not huge fan of what it's become recently. That being said, still wish I'd kept the block with suburb and ocean views with two crappy units on it that we'd bought next to our PPOR (also sold).

    Still got a couple of fingers in the Newie pie and looking for where to move next ... might have to chat to Prop again
     
    Micko, inertia and tomlemke like this.
  11. tomlemke

    tomlemke Well-Known Member Business Member

    Joined:
    21st Jun, 2015
    Posts:
    950
    Location:
    Newcastle
    I still think the market is going well, our office is still selling most homes in the first 30 days.

    The office Auction clearance rate is 78% with the majority selling prior. The other 17% sell closely after and 5% are withdrawn.

    Most sellers still think their homes are worth 10% over what the market will pay. 12 months ago most of the time the seller would get lucky and find a buyer to pay it.
     
    drg86 and Micko like this.
  12. JT_85

    JT_85 Member

    Joined:
    31st May, 2017
    Posts:
    10
    Location:
    Newcastle, NSW
  13. drg86

    drg86 Well-Known Member

    Joined:
    25th Jun, 2015
    Posts:
    436
    Location:
    Forster NSW
    I've been a bit absent from the forums last few months, lots been happening this year. Just got married last month so wedding stuff took out my PChat time haha. We have also just moved into new PPOR and a change of job for my wife.

    Property wise we finished off a reno on our PPOR in Birmingham Gardens and made that an IP in February. Leased for $500/week which was higher than we had planned so would agree rental market strong. Another one in Waratah West we were offered and extra $20/week over asking and we are really happy with the new tenants.

    In March our block at Cameron Park sold. We had initially purchased this to do a new build PPOR, a combination of excessive build costs and a change in circumstances made us change strategy and we decided to flip the block after holding for over 12 months to reduce CGT. In the end we more than doubled our cash investment in 18 months so were really happy with the outcome.

    In April we settled on our new PPOR, we've moved north to a coastal acreage much like Whitebridge/Dudley but a 1/4 of the price. As we plan on kids in the near future having some family around is going to help a lot plus I finally have some room to build a huge shed:D

    Plans for the Newcastle properties are to drop some granny flats in to take advantage of the land size and get the cash flow pumping. Set the new house loan up with a few splits ready for this next phase. We'd like to buy something else but the game has changed now with the lending taps turned off. Just going to sit back and pay down some debt while these interest rates are low. I think rental supply will slow down as if there are thousands of investors like us who no longer have access to funds we can no longer bring new properties to the rental market. Will be happy if there is some strong rental growth over next few years, will wait and see, maybe all the new cbd apartments will keep it balanced?

    Still following the market closely, watching what is being listed and sold every few days. I'd have to agree with Tom and say that stock is still turning over reasonably quickly and may have only come back slightly on last years frenzy. So much development happening I think Newcastle is a pretty safe bet for a few more years growth.
     
    PJ1, JT_85, Micko and 2 others like this.
  14. Lizzie

    Lizzie Well-Known Member

    Joined:
    9th Jul, 2015
    Posts:
    9,618
    Location:
    Planet A
    I'm wondering on the next move. We'll have cash, so no lending required, and are debating on whether to hold off to see if the market slows further ... or simply go in low now with cash offers.

    Recently heard that the buyers pool has switched from investors - to tyre kicking FHB (you know the sort - want everything but don't have the money).

    Ideally we'd like to buy a large block and develop ... window shopping on realestate.com today
     
  15. Lizzie

    Lizzie Well-Known Member

    Joined:
    9th Jul, 2015
    Posts:
    9,618
    Location:
    Planet A
    I know the blurb say STCC for development, but an overlay states minimum block size is 400sqm ... even taking the 30% corner block increase into consideration ... the block is still not big enough to split.

    Is council being more lenient than it's letting on?
     
  16. TylerJamesson

    TylerJamesson Well-Known Member

    Joined:
    15th Feb, 2016
    Posts:
    409
    Location:
    Australia

    If the right property came along, in the right location, with a good size level block with the potential to CREATE SUBSTANTIAL EQUITY in the future - and you have negotiating power. Then anytime is the best time to buy in my opinion.

    The hardest time to buy in a super hot market as we saw in 2016. It is wonderful when buyers to thin out and you can take your time regarding due diligence etc.
     
    Last edited: 18th May, 2018
    Lizzie and tomlemke like this.
  17. tomlemke

    tomlemke Well-Known Member Business Member

    Joined:
    21st Jun, 2015
    Posts:
    950
    Location:
    Newcastle
    Congrats Dan!
    Hey Lizzie,

    Minimum block size in Newcastle City council is 200sqm2, anything less can still be split but it becomes strata. I'm going down a similar road my self, the current block i have is 405sqm2 which will be split into 2 blocks.
     
  18. tomlemke

    tomlemke Well-Known Member Business Member

    Joined:
    21st Jun, 2015
    Posts:
    950
    Location:
    Newcastle
    Congratulations Dan, best time of your lives during the wedding period.
     
    drg86 likes this.
  19. lightbulbmoment

    lightbulbmoment Well-Known Member

    Joined:
    21st Jun, 2015
    Posts:
    959
    Location:
    nsw
    Lol the merewether of six years ago... its exactly the same place exact a few townhouses might of been built in your street or your neighbour might of decided to knock down there old shack and you now have a double garage right on the boundary. Other then that nothings changed...
     
  20. lightbulbmoment

    lightbulbmoment Well-Known Member

    Joined:
    21st Jun, 2015
    Posts:
    959
    Location:
    nsw
    Ridicoulous has to be a gee up.