NSW Newcastle 2018

I think the best growth has been seen already, Argenton seems cheap compared to its neighboring suburbs but it always has been that way and i really can't see it changing any time soon. The median in 2011 was $270,000 and currently it's at $435,000.

Stockton is a funny one because traveling 25 Minutes for people in Newcastle is a long way, prices have just about doubled since 2011. The median in 2011 was $416,000 and is now currently $723,000.

 

Winter has finally arrived for Sydney real estate. Newcastle seems to be holding up better mainly because the median house price in Newcastle is a lot lower...and smaller loans are a lot easier to digest for a lender.

Lending in Sydney is back around GFC levels

Investor retreat from the property market continues as lending falls again - ABC News (Australian Broadcasting Corporation)

 

https://www.google.com/url?sa=t&sou...FjAAegQIABAB&usg=AOvVaw184TVAKykna862fbfCXDtQ

Go sydney go

 

Article from 7 April - thats pre-Royal Commission ie big 4 banks shat the bed news
Lending tap has been turned off since.

 

Just looked at the picture of the plan. My IP is on Fullerton St exactly were the tunnel is proposed to come out of the ground.

 

That could be the golden ticket, make sure you hang on!

 

Hi @tomlemke,

What's your thoughts on the current Newcastle market, in particular around the Uni of Newcastle? For example the suburb Waratah West, is it too late to get in now? And if it's still not too late, what type of house would you recommend?

Cheers,
David

 

Hi @David Shih depends on your strategy, areas around the uni eg Waratah West, Jesmond, Birmingham Gardens & Shortland rental demand has defiantly decreased with part of the University being moved into the CBD.

We did experience a slump around 12 months ago as a lot of investors started offloading share houses as they could no longer fill rooms. Driving around these areas now, you are seeing lots of first home buyers and younger families that are now moving into the area. This is mainly due to afforibility, most streets have at least one renovation happening at a time.

There is defiantly more family friendly parts of Waratah West, Streets around King St seem to have a lot less student accomodations opposed to Street like Allowah Street. If you purchased something like the below properties that you could add value too I don’t think you will go wrong with long term.

Rental Yield isn’t outstanding and you would be doing well to get above 4.5%. Without adding a granny flat.

9 King Street, Waratah West, NSW 2298 - Property Details

30 King St, Waratah West, NSW 2298 - Property Details

I think the market will stay fairly steady for the next few years so just take your time. If your wanting to buy in Newcastle just buy as close to the city as you can, just look for corner Blocks that can be split or houses you can add value to.

 

Hi Tom,
How do you feel things are moving along in the CBD especially with the new Uni increasing by 9x it's size over the coming years & the recent move by the government to cut funding to Australian Citizens........the Uni will have to move more to overseas students to fill the gaps.
I feel the UNI is moving towards a Campus CBD similar to New York State or Rice village in Houston but obviously on a smaller scale where everything in the City evolves around the Uni.
Also with Newcastle becoming a Smart City it will hopefully draw a lot of small start up companies with the help of the Uni / New Space.

Do you feel this will be a good thing for the CBD?

 

Hi @David Shih

Welcome to the Newcastle thread.

What is your interest in Newcastle if you don't mind me asking. Are you looking at regional growth outside of Sydney?

If so why??

 

Hi @TylerJamesson.

LOL thanks! I'm actually asking on behalf of my client who are looking around Newcastle Uni/Waratah West area and thought it would be good to also get some understanding from the Newy gurus here

My Geelong purchase has done really well and that was bought at a very low entry price. For the same reason, I feel with Newy's distance to Sydney and the amount of new infrastructure going in and properties can still be snatched up around $400 to $500K....half price of Sydney's current median, I feel in the long run it will also do very well as a major regional centre.

Just unsure whether the ripple has already came and now past! Hence the interest

Cheers,
David

 

Thanks @tomlemke for your detailed explanation!

So in summary, investors are offloading their huge share houses in the area due to much less student demand, while owner occupiers are marching in to pick up the stock due to the low purchase price. That make sense as I'm seeing quite a bit of big homes (clearly was share house previously) currently up for sale. It also means more OO will then start to gentrify the suburb.

This is interesting - why do you think the Newy market will stay steady? Keen to know your underlying thoughts leading to this conclusion.

Thanks again.

Cheers,
David

 

A few reasons below why I think the city will stay steady with growth.


NEWCASTLE City Council will spend a record $100 million over 2018-19 on capital works as part of its quest to transform Newcastle into a “smart, livable and sustainable city”.
Newcastle Council’s big spend

Wickham master plan
Wickham Master Plan

Shopping centre boom
Hey big spender: the $1.1 billion mall war in the heart of NSW

 

Can anyone give me feedback good and/or bad on Property Bloom who assist in developing in Newcastle and Hunter?

 

Or any suggestions for this type of developer around Newcastle who assists in the whole process from the start selecting the location and then manage the process?

 

Aaron,

If you want to be a developer you need to do it yourself. The likes of propertybloom eat away at your profit margin. It’s up to you whether you want to pay someone to make money, or you keep the profits for YOURSELF.

All you need is a keen eye for a good development site - and a good building designer/architect with experience in multi-unit dwelling developments. They will know the potential of the development site you're looking to acquire. Best to run things past them before making any offers.

Just my opinion.

 

Cheers, and I agree with you on everything you said but I was thinking with my first one it would be good to employ professionals and learn as much as I could

 

Hey Aaron,

Give Dale Slater a call- 0438498577, he works for Vista as a buyers agent who sources development sites in Newcastle. He is about as honest and genuine as they come and actually has done plenty of developments himself in Newcastle so he knows his stuff.

Buyers Agents - Vista Property

They have a sister company that will help you through the build process as well.

 

This looks good to me but haven't done any DD yet
38 Abbott Street Wallsend NSW 2287 - House for Sale #128635990 - realestate.com.au

 

This will be interesting to watch!

House on Nearly 2000sqm2 in Merewether, no guide yet.

8 Kempster Road Merewether NSW 2291 - House for Sale #128640198 - realestate.com.au