NSW Newcastle 2020

Would you buy, a unit or townhouse close to the beach, I like cooks hill/bar beach or closer to work in the Lambton area (Hospital) a small house or villa. If I move away it would be rented out but to start would be lived in. My thinking is both location will be ok as rentals.

Opinions? It could be suburbs near these as well, just rough guide.

 

Hi Rose,

If you are wanting good long term growth I would be buying as close to the beach as possible,
I like the older 60’s - 70’s blocks in Merewether/ Cooks / Bar Beach, with 4- 10 units and prefer 2 bedroom apartments over 1 bedroom and must have parking.

I just had a look through the for sale section on REA and couldn’t see anything that I would recommend. The market is really tight in Newcastle with the majority of vendors holding off.

Your budget will be the main issues as soon as you go to a townhouse/ Villa in these suburbs you will be paying up to 50% more.

Just to give you an idea of what I would be looking for;

1/26 Brooks Street, Cooks Hill, NSW 2300
https://www.realestate.com.au/sold/property-unit-nsw-cooks+hill-132326166

1/26 Janet Street, Merewether, NSW 2291
https://www.realestate.com.au/sold/property-unit-nsw-merewether-133075798

17/11 Morgan Street, Merewether, NSW 2291
https://www.realestate.com.au/sold/property-unit-nsw-merewether-132464330

Or;

I don’t mind single level villa’s around New Lambton or Lambton either and these will be similar money to the Merewether units around ($500,000),

1/9 Dan Close, Lambton, NSW 2299
https://www.realestate.com.au/sold/property-unit-nsw-lambton-131636738

7/22 Karoola Road, Lambton, NSW 2299
https://www.realestate.com.au/sold/property-unit-nsw-lambton-126643690

 

Yes agreed with what @tomlemke says here.

 

The market seems to be back to pre covid levels, buyer confidence has returned.
New listings have still been tight, this coupled with lots of people looking is the main driver keeping prices stable.

The average days across most suburbs would be around 30 days, a few highlight sales that i have seen over the past couple of months.

Bar Beach sold for approx $5.8m
https://www.realestate.com.au/sold/property-house-nsw-bar+beach-132987818

Dated californian bungalow sold in Merewether for approx $1.5m
https://www.realestate.com.au/sold/property-house-nsw-merewether-133657946

Warehouse in Islington sold for $1,420,000
https://www.realestate.com.au/sold/property-house-nsw-islington-133433214

8 Carrington Street Mayfield sold for $1,030,000
https://www.realestate.com.au/sold/property-house-nsw-mayfield-133444018

Gun barrell in Islington sold for $950,000
https://www.realestate.com.au/sold/property-house-nsw-islington-133018998

 

Is there any indication from anything you see Tom that listings will increase in the near future, with seemingly plenty of people looking to buy ? I spent half an hour in line this morning for a property in Hamilton. Plenty of first home buyers, younger couples walking up to view and walked away.

 

I haven’t seen any indicators yet, the only way listing numbers will improve will be if the
“job keepers” ends and people haven’t got work to go back to and they need to sell.
The general consensus from people not actively watching the market that I’m speaking with is that they think prices have taken a hit and they are reluctant to sell.

I had 30+ groups at two of my opens on Saturday, they were both shown for the first time. Once we get through all of those groups we might be lucky to have 2-3 serious buyers.
Lots of stickybeaks have been out trying to gauge what is happening on the ground.

The mentality in Newcastle and its probably the same in most areas is people hate losing a dollar, if they could of sold for more, an example;

An average home in Mayfield worth $600k pre Covid is now selling for $575k, vendors will hold off from selling unless they have to, even though this home would of been purchased for $300,000 in 2012. The whole supply and demand statement which I referred to in my last post will be the reason why these homes that are logically worth $575k will start achieving $600k+ again like they were prior to the virus.

With what’s happening globally I think we are in a temporary bubble, I would be hesitant to buy if your looking for something short term and you cannot add value. If your upsizing or downsizing in the same market it’s fairly irrelevant.

 

This result seems to be significant for the area @tomlemke in the high $1.Xm's

Any idea what demand like at the moment for turn key high end builds?? I guess a big home and home office with a yard and walk to amenities and parks is popular thanks to COVID-19?


Inner City Oasis
159 Beaumont Street, Hamilton

Sold 159 Beaumont Street, Hamilton NSW 2303 on 25 Jun 2020 - 2016156085 | Domain

 

@TylerJamesson 100%, $1.8m is a huge price for that home on Beaumont Street.

Yes still good demand for quality homes, the majority of people don’t want to do the work so they will pay a premium if it ticks all boxes.

 

Just a hop skip and a jump to this -

Police under siege or PR campaign?: What's driving the release of violent body cam footage?

Almost comical but this is basically a daily occurrence.

 

Everything is a hop skip and a jump to a housing commission complex in Newcastle WILSO.

Have you seen the commission units on Watkins Street across from Merewether Beach next to $5m properties? Or the ones on Parkway Avenue and Union Street?

Not to mention all the other complexes scattered around Newcastle city?

 

Sure have. Merewether residents are often the most naive.

 

Hi All,

Looking to purchase 3rd IP that is neutrally geared (we have one positive and one negative at the moment). Ive been checking Waratah and Wallsend areas. Any caution about these suburbs, like which streets to avoid? And what do we need to check in a house? Looking for a 4/2/2 if possible with budget less than 500k.

Thanks!

 

I very much doubt you will get 4bdrms and an ensuite for that money in those areas.

@tomlemke is the man in the know though.

 

No chance on that budget with that brief.

Waratah prob better than Wallsend as its closer to the action. Still plenty of potential in Wallsend though.

Budget will dictate what you decide.

 

Hi Gwyneth,

Not a lot of 4/2/2 in either Waratah or Wallsend in General but if you did find one the starting point in Wallsend would be around 700k.
32 Fryar Crescent, Wallsend, NSW 2287
https://www.realestate.com.au/property-house-nsw-wallsend-133848822

The sub 500k market in Wallsend will buy you an average 3 bedroom home that may of had the kitchen or bathroom update or it will buy you a a very ordinary house in Wararah on a main road or busy street that will need work.

 

4/2/2 in your price range would be difficult to find
This would be my pick if for IP. High 400s to early 500 although not sure how much it actually went for.
https://m.realestate.com.au/property-house-nsw-wallsend-133873954

 

Check the flood maps on the council website as parts of these suburbs are subject to flood.

Typically, as with all searches, check recent DA approvals and housing commission etc.

Make sure you get a building & pest report. Check in the COS where the services run - sewer, water, any easements? Encroachments, Mr Fluffy loose asbestos? in the roof cavity, and so on. Check with Council on approvals for any building works. Then have your soli / conveyancer do their checks also - subject to road widening? compulsory acquisition planned by ? etc.

Happy hunting!

 

Not sure if anyone posted this back in May when it first ran (or not), but worth a read:

Developers bypassing Sydney to spend their millions building in Newcastle

My $0.02 is that this is in-line with the covid inspired Sydney exodus. Developers will be more interested in smaller projects in the 3-hour triangle of Sydney. More demand for ex-sydney'ers who are cashed up and wanting the WFH-lifestyle change. There's big markets for that now. Developers benefit with smaller projects with much lower overall investment/cost which is surely more palatable for them at this present time.

Now... if these darned developers can just learn to develop the RIGHT stock for these sites they may just do well. So, hopefully not towers of low-grade studios in inner Newcastle and Wollongong CBD's! They should build larger 3 bed higher-finish properties that will have diverse buyers such as WFH-study-requiring couples, young families with kids, or retiree downsizers who need guest bed/bath facilities for visitors.

 

Thank you all for your feedback! Appreciate it. We might then look for a 3/1/1 instead. We might also start considering townhouses/villa closer to Newcastle. Im thinking similar to this:

2/5A Brown Street, Adamstown, NSW 2289
https://www.realestate.com.au/property-house-nsw-adamstown-133599358

Didnt expect Newcastle area is now so expensive!!!

 

Noted! Thanks so much.