NSW Newcastle Property 2017

I have finally been able to raise rents after a few years. I even had 2 parties offer me $10 more for a house at Lake Mac even though I had already raised it by $10. Allowing pets defiantly helps as well. Compared to a property in Logan which I am now having problems renting even with price drop.

 

https://www.google.com.au/url?sa=t&...wAToQFgggMAE&usg=AOvVaw0CLv_vwVnsPjvAYp8RLrvg

Cheap way to get into the premo suburb with a hardwood frame to work with and a bit of dirt under your feet?

 

hasn't disclosed yet. doubt it's premium price undconditional though as it's still on market- otherwise it will be marked sold with high price. Who knows buyer may be an agents friend

 

May be quoting a bit under....

 

this one is at a better location. how much do you think it would go for??
95 Watkins Street Merewether NSW 2291 - House for Sale #126741062 - realestate.com.au

 

not much hopefully...

 

Interesting property in wallsend...end to end two blocks..R3..double frontage..1300sqm..existing 2BRs.
47 Robert Street AND 5 Low Street Wallsend NSW 2287 - Other for Sale #126892462 - realestate.com.au

How would you value such a property ?

 

Quite likely. S

That doesn't surprise me at all. I think that the combination of lower interest rates, increased supply of rental stock, and investor appetite for lower yields is a perfect storm.

Wonder how much int rates would have to rise before there is a squeeze? Maybe rents will have to rise at that point - but not if there is too much stock. I doubt property is going to crash, but it will go sideways for a while (in town at least) once another 1000 units come online in inner city in the next 3 yrs. Wouldn't be too keen to be over invested/leveraged in city from a cashflow point of view.

Any thoughts?

 

R3 Wallsend are not getting top price but selling quick I think - good value if you can develop straight away like this one- sold much less than I thought it would
26 Murnin Street, Wallsend, NSW 2287 - Property Details

 

Rent won't keep up with the boom. you don't find much cash flow properties here now. But I think some steam left for capital growth for a year or so. Hasn't settled down yet if any I see more people at opens

 

Is there anywhere left in Newcastle that is even cash flow neutral??

 

I attended this one. Was cold, windy and a low participation.... 635K or thereabouts from memory....Was a knockdown, so price was the cost of land + R3.

Given the recent CG, is it a right time to start a development now in Newcastle?

There is a high risk of development profit being eroded by the time Development is completed. Especially properties like murnin street above will incur substantial holding costs and the current feasibility might not stack up by the time DA comes through

Conversely, those who have recently completed developments will be sitting on hefty gains.

 

yes you are right. holding cost would kill the profits. at least Robert/Low street double block has liveable/rentable houses.. wallsend is changing with lots of low/medium end town-houses - still profitable if you got a deep pockets imho

 

Isn't that always the case? If you are well capitalised - not too highly leveraged - with cashflow - like any business you are more likely to make money!

Having lived through a few property booms now, my experience is that price is relative, and there are always good buys out there. In every boom, people are saying that the sky will fall in, but that has never happened in Newcastle.

It is about having good contacts to bring them to your attention and knowing the rules of your DCP and LEP like a pro so you can recognise value when you see it. That is what separates amateurs from pros. Sometimes knowing one rule can unlock bucket loads of money that others overlook.

 

Sold at 870k- not so cheap after all...

 

which suburb in Logan?

 

Thats more like what i thought for this block of dirt. Location is good but the old townhouses with big windows looking straight in the backyard is a killer.

 

Dalton partners love a good boast " hey everyone lets put a photo up of this bloke who just paid 120k more than what we thought it was worth" cant wait for the day when these fairys have to work for there comission.

 

I have just put an offer in on a house in ncc will post if i get it find out monday. Good for subdivision

 

This is a good post, through my thorough research and self learning i can now read a contract of sale better then an a lawyer and know what the highest and best use for a block can be more than a architect. Haha jokes im not quite there yet but have picked up a bit.