NSW Newcastle 2018

Great, thanks guys. Alan, we will be in touch.

 

@Propertunity

Alan, How much do you need to spend to get something decent? How has the Sydney market correction impacted Newcastle?

Regards

 

Hi Luke, define your version of "something" and "decent", please. House prices vary from $500K(ish) to over $1+M. The average 3,1,1 suburban house in an average suburb (not beach) might be $650K(ish). There are lots of variables obviously.

As Sydney cools its heels, about 6-12 months later Newcastle follows (ripple effect).

 

It’s starting now
Newcastle house prices fall for first time in seven years

 

Just goes to show you how much credit and debt can fuel a property market. Take away the punchbowl and the party slows down pretty quick.

Has been a pretty full on bullish party over the past few years. Good to see things slowing down before it got super crazy and s hit the fan.

Slow down was much needed.

 

I think the north - newscastle as you say and Central Coast are good ways to go.

Alot of potential I think. People are priced out of Syd.

 

Arent you one of these people though that spent 800k on a old house in hamo?

 

One of these people???

Let me see you go buy 500+ sqm medium density block with a cavity brick federation home on it in Newcastle's inner city ring for less than that.

Good luck finding one.

 

As Newcastle has slowed a little, people are heading to more affordable homes to Maitland and we've seen prices shoot up considerably in the last year or so.

 

You have done well my friend.

I pulled up out the front of yours the other day whilst on my voyage for darby raj and 3 pack rack of tooheys new.

Get that brick facade tuckpointed , replace that asbestos roof and a slap of paint and it will look smick as!!!

Hopefully next door builds something really nice aswell of you havent noticed you now only have one neighbour.

 

Market update for October-

It has definitely slowed down, we have see prices come back atleast 5% -10% In most areas since this time last year. I still think we will have a rocky couple of years ahead, if you do have to sell in the next 12-24 months you will have to be prepared to get your presentation spot on because the few buyers that are looking don’t want to do the work.

The 5%- 10% drop won’t be a issue to most, it will only affect the people who have purchased in the last 12 months and if you need to get out hopefully you have some value you add oppotunities to try and limit the loss.

Finance has been the biggest issue raised by everyone I’m meeting, along with all the fearmongaring in the media.

We are still getting between 5-10 buyers through the first open house if it’s priced right and the numbers through are halved by the second open. If the price is 5% - 10% over market value you will get no one through. The first offer coming in week 1 or week 2 has generally been the best offer.

I hope this doesn’t all sound like doom and gloom, we have had a great 5-6 years and we will just be reverting back to a normal market.

 

If you where thinking of an investment property in the Hunter region would you by now or wait ?

 

What would you be waiting for exactly?

 

Maybe might be waiting for a weatherboard Dog box in mayfield to come back down to its true value of around 400k not 600k my friend.

 

I like these updates

 

Nice one my friend, obvs to sell or is it going to be your final abode?

 

To sell. In relation to @tomlemke post, hopefully Bill Shorten doesn’t win by too big of a margin as they might waltz in negative gearing repeal and capital gain discount repeal as well.

That could really hurt the property market and make it a lot less attractive to investors.

 

For the locals how do you feel Muswellbrook is tracking? Up 10% over the past year, vacancy rate down, mines kicking up again. People priced out of newy/Maitland. Potential?

 

If prices where to go down it mybe worth waiting to buy at a later date.

 

Yes, you're right but there are 3 problems with this:
1. What if prices don't go down for the particular property you want? I see quite a few properties selling cheaply, but I also see decent properties still commanding good money.
2. What if credit markets are constricted even more than they are now, and the right property comes along, but now you cannot borrow either "at all" or "not as much" as you need.
3. How do know you are buying when the market has reached the bottom? If it drops say 5% this year, and 3% next year and the right property comes along, do we wait again for the market to drop?
Mostly you can only tell if the market has reached the bottom, when there has already been a price recovery for many months and in this scenario you are no longer buying at the bottom of the market.