NSW Newcastle NSW is absolutely booming

Slowly working towards that "FU" position and seeing if i can get there a bit quicker @tomlemke Only just started researching the market again a few months ago after quite a few years just paying down debt....considering either upgrading PPOR closer to town or investment. To be honest i never really considered the Hamilton areas until i looked at a few of them today...i always used to think of Hamilton South as a rough area and couldnt understand why people bought there when Junction or Merewether was at a similar price. But now i can see why....there are some absolutely stunning old houses there that are impossible not to like....just beautiful. But incredible growth already on alot of them in recent years and probably missed the boat there....e.g. 56 Stanley Street $1.7 Mill asking price after it sold for 1 Mill 3 years ago. So not sure when and where yet....Newy market is so hot at the moment as you know....i may just finish paying down and go debt free for a while. Maybe just sit down and have some popcorn with old mate and wait

 

Yep you are right @Micko that market has always been hot tho. I grew up on the border of Hamilton south/ The Junction and have always wanted to get back in. With the way the Newcastle market has grown i was lucky enough that I can sell two places and buy one and be in a similar position as I was in at Wickham. People are paying a premium for the ones needing renovation, just look for the ones that are half done that people would be hesitant to re do. Your welcome to come for a look once I get the keys in October.

 

Tom lets take a bet on this one. I say this one is going to be a lemon for you.

 

Ald my friend, reading through Tom's post he has done very well for himself, you however have 0 creditability on this forum.

 

LVR is around 30% so not overly concerned with a correction.
The last two sales in Hamilton east have been $1,540,000 and $1,555,000 so that is giving me plenty of confidence with my purchase.

 

Thanks for the advice @tomlemke. Will keep in mind when looking around. Your right though...people are loving those unrenoed, blank canvas type places at the moment with what almost seems like blank chequebook enthusiasim...ive seen them getting all excited about them at the open houses ive been to. Youll be sweet with Hamilton East...its just so central to everything there. Can you walk to Marketown from where you are? Is it heritage listed? I just cant see those blue chip areas like Hamilton, Merewether, Junction ect going down...theres just nowhere near enough stock to cover the demand for them and with all development happening in there. However i did think that 17 Elliot Street was the first softer result ive seen in Merewether for ages...thought it would hit a million easy going off how many were at the open house. Cant work out why the price of that one didnt go through the roof like the rest of them there have...what do you think @tomlemke ?

 

I thought elliot street would of got to around 900k, it was a funny shaped block and a tiny house. They did advertise it $790k to $830k so I'm sure the agents claiming it as a great result. https://www.realestate.com.au/sold/.../sold/property-house-nsw-merewether-124878942 Yep the new purchase is in the hertitage area, although council told me because of its proximity to market town that it is voided. I won't be developing it any way, I love that style of home and will be able to add move value by doing a quality renovation.

 

When i looked at a few opens there last week, the agents kept saying those places in Hamilton South and East with a north facing aspect still get that cool North Easterly sea breeze in summer as well. So thats a bonus there as well. Alot of them only seem to be heritage listed at the front part....which is a good thing anyway to keep the character of the neighbourhood. ive changed my whole opinion of the area...it would be great place to live. I know Junction school has a good reputation but whats the reputation of Hamilton South school there @tomlemke ?

 

Really good probably better then the junction public, I went to that primary school myself.

 

Well if you only have a 30% lvr thats low risk for you agreed. But the markets will cool soon american banks are not making profits the 30 year fixed in USA is 4.4% up from 3.6% and americans are not buying houses as eagerly.

If you manage a quick reno and flip you might make under a hundred otherwise i see ten years of stagnant prices around the corner. The renter will pay your house.
I am preparing to buy in Hamilton South i even got a spam letter from you Tom.

 

Did you buy the house in Parkway ave?

 

If your keen on Hamilton South, why dont you have a crack at that one at 56 Stanley Street @Ald? Has been on the market a little while now....when we went to the open house there a few weeks ago, we were the only ones there. Not alot of interest so far from what the agent said. So even though the price guide was 1.7 mill, they only bought it for 1 mill a couple years ago so you could offer them less...and they were pretty keen to downsize from what the agent said. id have a crack myself but we arent able to get to those sort of price points yet.

 

This ones going be a 5+ year hold so not overally concerned with the outlook as it was a emotional purchase. No spam Ald, with such a lack of stock on the market I have been trying to help buyers find houses in Hamilton south / Hamilton east. Nope didn't buy on parkway ave, way to busy. If your genuinely looking give me a call, I have had a few calls with people wanting to sell silently.

 

Wrong side of the highway and around 200k to 300k over priced.

 

Just so that I am clear what do you think the price should be?

 

Tom thanks for the offer. I live in Hamilton South at the moment and I have just sold everything in NSW. I am going to do what I always do for a few years go to every rental and sale home open and get to know the entire neighbourhood and every house that has the right features of an investment property. I will be buying with cash, no agents, discount prices and best properties. I just know how to do it and it works for me. I bought a significant amount of shares this afternoon, when I wake up tomorrow I expect to see the stock market recovering back to a high but I will tell you it's the riskiest trade. Not properly analysed and I never used my software algorithms to analyse it so am regretting it a bit. The stock market has some steam left in it but we are sitting in the last months before a correction. It will recover so am not worried but I want it to recover by Thursday next week.

Australia is going to get its A handed to itself on a plate soon.
Economic fundamentals is what I follow, I won the economics award when I was studying towards my PhD and let me tell you that what was not put in place 20 years ago by Australians is going to hit em hard over the next years, they never planned for the future and the future economy. They are sinking the nations wealth into unproductive usury in completely unproductive assets and benefiting just several bank owners and state goverments that will squander the stamp duty.
Many Investors and home owners have just not figured out the goverments game yet, the don't realise the degree of evil people they have been burdened with. They don't understand the degree to which they are being played. Everyone bellieves the NSW economy is booming, nobody wants to open their eyes to see that there is absolutely nothing in it different to 2010 and it's probably gone backwards.

Don't loose your plumbing skills Tom, you will need them.

 

Respect! Best I ever got was second prize in a beauty contest.

 

1.4m to 1.5m at best

 

Why is the other side of Stewart Avenue more popular and usually higher priced @tomlemke?

 

Everything you need eg coffee shops/ supermarket/ beach / schools is on the east side. The west has nothing, the homes are more grand on the west side of Stewart Ave. Back in the 1920's when they were built Cooks hill/ bar beach was the slums so I guess the rich wanted to distance them selves.