NSW Newcastle Property 2016

Prices are are definitely going off recently. A house in Mayfield sold for $1,000,000 the other week. Also seems to be a real lack of stock on the market. Im looking to find an IP somewhere in Newcastle but very hard to find something sub $500k thats not Shortland, Beresfield or Tarro.

 

Hi ooneil,

Just wondering ... would you consider a new executive townhouse in a inner city suburb like Mayfield returning $490 per week?

 

Sub 500 house with a bit of potential is almost impossible to find. Lambton, Waratah (some parts) and Mayfield (including east) are selling quick

 

No, but i would like something with a block enough big enough that i could develop a few of my own down the track. Looks like you did a great job with yours!

 

development thread please
would be really useful for us all

 

what do people think about areas of new lambton near lambton highschool. Theres a few houses with blocks of land from 400-600sqm

 

Good. Just scratch the area between Monash Rd and Hobart Rd.

 

Has seen good CG, will do well. I was looking there too but end up buying nearby sub for a bigger land

 

Is Turton Rd ok?

 

Turton Rd is a main road isn't it? pretty busy.

 

Very busy and you have the stadium there, so when games are on there are lots of cars and foot traffic, which could be annoying or convenient.

This area is also pretty close to some major floodways (the stadium and all the parklands are classified as flood fringe zones by Council, check out page 20 and 35 of the Councils flooding maps http://www.newcastle.nsw.gov.au/New...nt/Flooding/R-N2246-001-01-compendium_WEB.pdf. The maps are pretty conservative and do not represent every storm that will go through, however they will be used by Council so any future developments will have extra requirements and insurance premiums may increase. Depending on where you're looking to buy on Turton Rd, try and find one that is elevated - many places would be fine though.

 

Try Lake Macquarie area...there are still some that come up but they generally need a good reno.

 

Yeah as a local take this advice, don't buy ON Turton Road. Try and find something in a near-by back street and you should do ok. As noted make sure your insurance has flood cover.

 

Development isn't for the faint hearted I can assure you. If you're not comfortable with high risk and the possibility of everything going belly up then think again. It certainly isn't trivial. If you choose the wrong site and your holding costs are excessive then your profit margin is already under pressure or the bank could take you under.

The Maitland Road development was 3.5 years in total for planning and build. Close to 6 figures in sunk costs for just the planning and approval phase, not accounting for my own personal time spent.

The site I owned outright as I had it land banked for quite some time before the zoning was changed to allow for a greater number of dwellings to be built on it.

I wouldn't be buying any new development sites at the moment. Not when the going rate is now $150-170k per new dwelling. Happy to wait and see how things play out from here with a large number of new apartments coming on in 2017/18.

 

OK if you like main roads...

I watched over a meter of water go through most those houses between Hobart and Monash Rds in 2007.

I rented in Durham Rd for 3 years so know that area well around the Pool/Wests/Stadium.

 

Great work @TylerJamesson i have been selling a few homes around Mayfield lately and most of the developers i have been speaking to only wanna spend 150k per site.
The last 6 months in Mayfield has been crazy, you would of timed your developments perfectly.
Do you have any more sites your planning on developing in the area? The numbers don't stack up at all if purchasing now. I missed out on listing this one the agent basically did it for nothing, they are hoping for $850k. You would struggle to get more then 4 town houses on it, at a million plus to build them doesn't leave much room for profit.

5 & 7 Villiers Street Mayfield NSW 2304 - House for Sale #124273094 - realestate.com.au

 

What's the go with Wallsend @tomlemke pal? Notice a lot of older renovated or partially renovated houses seem to go for less than townhouses.

 

Thanks Tom.

Yep have seen that site on Villiers. Not too bad of a site, not outstanding considering the price tag. And as you say, hard to make the numbers work when the going rate for a new 3 bedroom townhouse in Mayfield is say $520-570k. Construction would cost you around $250-275k per dwelling. Not much left over after accounting for GST and CGT on the sales.

I timed my Mayfield build well but it doesn't always work out that way. Historically low interest rates certainly have helped! But extremely happy with the rental return for the new dwellings at $490 and $480pw.

I not in any hurry to buy another site at the moment unless it's an exceptional location with blue sky potential. I'm finding it much harder to make the numbers work in the current market at present.

 

Wallsend 'worlds end' known by Novocastrians still represents good value the area has changed massively over the last 3-4years. It wasn't that long ago that you could pick up a 3bd house on a reasonable block for mid 200k. Lots of new townhouses popping up, we are selling a developement site in Wallsend ATM which has a D.a for a high rise unit site with one and two bed room apartments which will be a first for the area. Areas like Wallsend and Glendale are becoming their own little CBDs, I think the future looks good for these areas with all the redevelopment that's happening.

 

I purchased a place in Mayfield 2012 for 300k with r3 zoning the block size is only 440sqm2, hopefully i can buy the neighbours place if ever comes up for sale that will give me close to 900sqm2. That was an interesting build he lined all the walls with rubber to try and stop the noise.

Great rental return on your townhouses, did it take you long to find tenants? I worked on the townhouse site doing the plumbing, that got built around 3 years ago its on the corner of Maitland road and Woodstock st it was an old service station.