NSW Newcastle Property 2017

Maybe. Agents tell me that n many students start by renting from the Uni, but then want to move out into smaller houses and shared accomodation. The losers will be the Slum Lords with the Council cracking down on illegals. Now students want nice accom with ensuites in their room.

 

Does anyone know how the financing works with

Yes I saw that and thought it was quite astounding as I remember te 1.3mil price. But if you look around Newcastle inner now, 1 mil is common place so it is not a surprise to me really.

 

Hamilton has always been a popular location for both owner/occupiers and investors. The proximity to local restaurants, services and the CBD is ideal making the area a sure bet.

 

Do you or anyone know how the financing works on the new generation boarding houses i.e. self-contained micro units? I have two on verge of approval.

Been to see 2 banks and both tell me that the lend will be on commercial terms: 15yr terms and 60% LVR - they are viewing it as a business.

I can afford to do it, but trouble is that on those terms I am hamstrung for equity and most of the cashflow tied up as well. Want to be able to do other projects after this.

My bank manager told me that I could get approval for a residence using the same/similar floor plan to get the 80% LVR and convert after that and "we would never know". Bank said that before converting, they could arrange a generous line of credit/term loan (400-500k) so I can have enough cash to do a small development after that.

It would all be fine until I needed a re-val down the track to borrow against it e.g. in 5 yrs. Whilst both bhouses look like a large house, a valuer might just do a drive by in that instance. But if they wanted to come in, it would be problematic and if made to convert the loan to commercial terms, then could potentially be up creek.

I have a couple of questions:

1. Do valuers tend to come into your properties to reval? Have had both on mine.

2. Any ideas for alternative options to get finance at better rates. Even an LVR 70% would be fine, but the 15 yrs is problematic.

3. Any other insights?

I am realising why there are few of these new generation boarding houses being built in Newcastle when these are the terms.

 

I spoke to Ian Ugarte from HI-RES last Friday at the Sydney home buyers expo, this seems to be his thing. To get around lending restrictions he mentioned the same as your bank manager, build as a house for an 80% lend then do the boarding house conversion afterwards.
Are you based in Newcastle? I'd be keen to see what your plans and costs look like.

 

I am actually. Would be happy to meet. I'll PM you details.

 

Not a bad development site up there at 52 Memorial Drive/1A Fenton Ave Bar Beach. Shame to see that old house being knocked down though....that place was the king of the Bar Beach hill for as long as i can remember there. $3 Mill for the site plus demolition costs.... What are they doing development wise there @tomlemke do you know?

 

I thought they were just splitting the block? You could build an awesome house overlooking Newcastle.

 

Spoke to local waratah/georgetown/mayfield agent about that area yesterday. He says that he is seeing investors backing off from the market. Cited changing fundamentals ie higher LVR requirements and interest rate differentials, and difficulty getting Interst Only loans as the reason.

Can anybody confirm or refute that?
Could this be the beginning of a slowdown for those suburbs?

 

'Significant turn of events': Sydney property prices suffer quarterly fall

Mr Lawless said home prices across regional NSW are outperforming Sydney, with values up 9.7 per cent over the past twelve months, led by the Newcastle and Lake Macquarie region.

 

Nek minute renovated house in stocko sells for 2 million.

 

The Stockton sale is chump change compared to this
6m off the plan unit sale. $6m paid for East End penthouse

 

I reckon. That is a ludicrous price to pay for Newcastle. I don't care how big the apartment is! That is more money than sense.

 

Not really. Lots of activity. Went to this one. At least 20 groups but oddly the agent seems fending some off telling them a lot of houso around
27 Robinson Avenue Lambton NSW 2299 - House for Sale #126843878 - realestate.com.au

 

Just got msg it's now sold- in less than 36 hrs

 

Has the Lake Macquarie region had similar large growth to Newcastle / Sydney?

 

From my observation there has been growth but not crazy like Sydney. Others can comment further.

 

Lol. Well it is houso-ville! Reminds me of Waratah West a little.

 

Wow. That is quick. Probs attracted lots of first home buyers. Any idea on final price?

 

Newcastle rent prices fail to keep pace with hot market