NSW Newcastle 2020

Well. I thought that when they were sub $200k ... and sold merewether 9 years ago for $1 mil less than I would get now ... so I ain't game to advise

 

Neighbor at merewether had to pour a dozen cement mixtures into a hole under his block before he could build ... 3 doors up was a park that used to be a pit head

 

Some massive results in Mayfield I see over the weekend @tomlemke

'Maif' is really starting to fire on all cylinders isn't it. Rents are now nudging $540-570 p/w

Will be interesting to see what happens when the new Coles shopping centre opens.

Looks like Newcastle's inner-city ring Waratah, Georgetown, Broadmeadow, Adamstown, Tighes Hill, Mayfield is pushing up to $800k for a 500sqm block in a decent locale

 

I’m still in shock, it was a massive result!

Imagine what will happen to prices once the whole of the market comes around to Mayfield,
it definitely still splits buyers that are 40 years or older!

 

There are still 2 different types of Newcastle buyers Tom. One is under 40 yo and other is over 40.

The over 40-45 buyers remember the Newcastle city of old with heavy industry and steel works and see Islington, Tighes, Mayfield as beneath them. Younger buyers on the other hand have no such stigma, and see them as cool as they’re close to other young people, pubs, cafes, etc. They couldn’t care less what older people think.

I saw the fast gentrified transformation of Surry Hills, Newtown, Chippendale, in 2001-2004 first hand and Tighes Hill, Mayfield Islington etc are following a similar trajectory.

 

At a look at one of the Wickham Wilshire apartments a few weeks back ... very tempted .. and love that the ground floor cafe was heaving (at a social distance). Need more cafes in the area and keeping my eye out for when they develop the empty store building over the road

 

Went to this auction today at 18 Alexander Street Hamilton

3 Bed, 1 Bath, older style renovation from early 2000's - sold for $2.05m to a Sydney couple

18 Alexander Street, Hamilton South NSW 2303 | Domain

Newcastle is starting to really heat up.

 

Hi Tom, what is the minimum size of the block if you were to subdivide/put a granny flat in the newcastle area?

 

I was pretty keen on that one, but would not be in a position to buy for a bit. Good to know what I'm aiming for!

Cheers,
Inertia.

 

Yes it was beyond my expectation also. I was only a keen observer but my thought was perhaps $1.6-1.8m tops as it need a bit of a freshen up and was only a small home, single level, 3 bedrooms and 1 bath maybe 180sqm internal. If that.

The bidding started at $1.5m and went up to $2m in the matter of minutes with $50k bids. There were 4 or 5 parties bidding. Hammer fell at $2.05m to Sydney couple in early 40s.

Which says there is plenty of buyers looking for good quality high character properties that are turn key.

 

what sort of age bracket do you reckon?

 

I am thinking of building a duplex in Wallsend as duplexes can create instant equity - what’s your thoughts on Wallsend as a place to hold an investment and rent it out?

 

Previously I would have given it a hard pass, but I have been working out in Wallsend now for a couple of months, and I have changed my mind somewhat. Sure, there is still a large low socio-economic group, but it is also affordable to many and convenient to services.

Just make sure you target the build appropriately, and dont go over the top.

 

We own two on a quiet street between wallsend and elemore vale ... a bit better on that side

 

Another weekend and another auction result

For result me this one stood our for a very run down almost uninhabitable home on Blackall Street Hamilton. Needed a lot of work. Sold under the hammer for $940,000 - 500sqm block.

Although I'm sure @tomlemke could have got it to $1m if he was the agent

24 Blackall Street, Hamilton

Sold 24 Blackall Street, Hamilton NSW 2303 on 16 Nov 2020 - 2016549563 | Domain

 

After 6 months in the market we’ve just bought a PPOR in Georgetown! We will be moved in by Christmas.

Our experience was that Newcastle is hot! If you want a quality property in and around the inner-ring, you’d better be prepared to offer after the first or second open...

 

It's to hot for me to be looking atm ... although keeping my eye on some nearby areas.

As I was advised at the beginning of my property journey "follow the gays and artists" ... and history has taught me that they sure do know the next gentrification area

 

We’ve had one eye on the Newcastle market for a few years, so we knew how competitive it would be! It’s a PPOR and we are relocating from Sydney, so we were happy to offer aggressively for what suited us.

From our experience, I wouldn’t think there’s much opportunity to low-ball (or even medium-ball!) at the moment unless you’re looking to take on a challenge - serious structural renovation or rebuild, close to industrial or rail, sloping block, busier road. Those types of properties seemed to be the only ones hanging around on the market longer than 10 days

 

Btw Georgetown may not be under the radar to locals, but it wasn’t initially a part of our suburb search. We are glad we added it, because for our needs (2 young kids) it is perfect. Judging by the vibe of kids playing locally it looks very family-friendly, flat blocks, and close to everything useful without having the through traffic and busy roads neighbouring suburbs seem to have. And it still feels close enough to Hamilton, Mayfield, and New Lambton to capture some of that inner-city village buzz (we are moving from Sydney’s inner West).

 

If the locals are anything like me, they feel the missed the boat with Georgetown years ago