NSW Newcastle 2018

"Luckily I have a trade background and can 'sell it myself' otherwise it wouldn't stack up."

I think the above noted you quite special @tomlemke most punters don't have these skills in their back pocket. And for the folks that don't know what they're doing, or don't have access to cheap trades people these budgets can quite easily blow out.

I still think it's a heap of work, risk and potential heartache for $50,000. Like picking up pennies in front of a steamroller.

On the flip side, you could hypothetically invest in CBA shares today paying a 6%+ fully franked dividend + some share price growth. All you would pay is for the brokerage and then sit back and watch the footy.

 

I tend to agree with you Tyler. What is in Tom’s Favour though is leverage. Assuming he has 20% deposit to avoid LMI he’s stumping up under $200k total for $50k return. That’s 25% which anyone would take.

But the risk is super high... I personally think that type of return is probably on par with the risk taken. The market has topped, a 20-30k drop in prices could happen tomorrow and is immaterial in the grand scheme of things but would wipe out much of the profit for a short term flipper. Other things to weigh up are structural surprises once the Reno starts (blowing out costs) and the Reno/sale time blowing out increasing holding costs.

 

It's sold now 700k. Not bad for 1000msq, 20metre frontage. Wonder how many townhouses would fit in @TylerJamesson

 

the drone shot shows a place a couple of doors up with the original house (with a small yard) and 3 townhouses...

Wow. The place 2 doors up was sold for $585k in April this year, after being on the market for 285 days. Cant see what price the developed townhouse(s) went for...

Cheers,
Inertia.

 

Would fit x3 -- 3 bedroom units pretty easy

 

thought would fit more - but if they can retain the front house, numbers are not bad.

 

From what I can see, things are slowing still. Less buyers with credit in the market, taking longer to get finance approval. Buyers have more negotiating power. Not looking fab for selling anything over between $1m - $2m in Newcastle.

Even Merewether properties aren't moving for the crazy prices they were back in late 2016/2017

 

$3.2m for 8 Kempster Road, Merewether

8 Kempster Road, Merewether, NSW 2291 - Property Details

 

We just signed up for two off the plan townhouses. Last two in development and developer just wanted thm sold. Paid $40k less the next cheapest, including ducted air and timber floor upgrades. Market is stalling so is turning into a buyers market if u have cash. Will invest the cash for nxt 10 months while being built.

 

Was please to recently get the new farm/house build valued - and with Merewether potentially stagnating for a few years - might just be able to buy back in

 

Congratulations !

 

Wow. Is that around the price they were expecting?

 

It's a property that's on 4 titles (from memory), so can be subdivided with very little hassle ... the house is on one complete title, and would be worth nearly 2mil by itself on the smaller block of land ... so good buy

 

Would fit 6 units easily

 

Good result but Ald what do u make of this 3m + sale in mez???

 

As I said two posts up:

It's a property that's on 4 titles (from memory), so can be subdivided with very little hassle ... the house is on one complete title, and would be worth nearly 2mil by itself on the smaller block of land ... so good buy

 

Cool story but im after alds opinion on this one ...

 

You'll then need to link him in, so that he knows you've asked him the question - no idea how to do it myself

 

Word on the ground was the buyers had the cash....so no loans needed. Hard to see them losing on it with a 1995m2 block in Merewether and no loan.

 

This can only be good for Newcastle ...
NSW infrastructure boom could soon put up to $60m into the pockets of local workers