NSW Newcastle Property 2017

Theres also this one which i think is a ridicoulous price achieved but gos to show what people are paying. Most likely people from sydney with no idea. First time ive seen an eave been painted black.https://www.google.com.au/url?sa=t&...FjABegQIARAB&usg=AOvVaw06XnGzDHJfb2blhiALfyjF

 

Any update on new lambton heights' market? I bought my PPOR 4bed/2bath/2garage behind John Hunter Hospital in 2006 and currently rented $640/week. I havent been to Newcastle since I left in 2009.

 

Yep someone from Sydney bought it as an I.p, rented prior to settlement for $860 per week. It was a quality build, Photos don't do it justice.

 

All depends on Street, you purchased at the bottom of the market so you would of had some decent growth. $640 a week seems solid, it would be well and truely paying for its self.

 

Internal looks nice.
Thats a very risky investment. And for that coin as rent id be overlooking newcastle beach not in a broadmedow backstreet.

 

Agree with Tom & Beer.
Some of the caravan park locals are sketchy. It was a busy suburb with many shops and services most moved once Glendale shopping opened.
The suburb is being gentrified slowly but not as attractive as the east side of the lake such as say Eleebana which has no transport or shops. For some reason, the west has always been lagging behind the east.

It does have a few things going for it.
lots of large level lots
lake views, no afternoon sun as experienced on the east side of the lake.
A few amenities, service station, bowlo & cafe
Tennis courts, parks & cycleway, close to Speers pt park
train and bus
back road to freeway
small school
Close to lake

But if the numbers dont add up they dont add up.. : (

 

Hard call, I personally think units are more risky and 1.1m doesn't get you much. I'd be buying two in Mayfield if I had 1.1m to spend.

505/61 Shortland Esplanade Newcastle NSW 2300 - Apartment for Sale #126534538 - realestate.com.au

 

Units are worse. I only look at freestanding houses not into townhouses or units. I mean the people forking out 860 a week to live in broadmedow. For paying that rent id want to be overlooking the beach near all the cafes somewhere nice.

 

https://www.google.com.au/url?sa=t&...FjABegQIBxAB&usg=AOvVaw0T3zktZbyJj5YBwOEECcyT

What about this one? Has rear lane acess but looks like there building that new coles right behind it

 

Yeah no wonder they are selling that site has sat vacant for 10 + years.

 

Thanks for that. Yep, both good comparables. Wondering if my sales predictions are slightly optimistic.

Any thoughts on my calcs/logic? Would like to be able to get more insights from those with more experience than I.

 

29 William Street, Mayfield, NSW 2304 - View Sold History & Research Property Values - realestate.com.au

800sqm (20×40m) block on 2 titles sold for $735k. Agents reckon could fit 4 t/houses. What do we reckon - a good buy at $185k a site plus stamp duty?

 

Amazing that price paid! Developer must have been rubbong his hands together. Not a bad spot there in Broadmeadow, but I agree that price defies common sense. Obviously didn't check the rental market, as $860 wouldn't be market rent would it? A quick check shows you could rent a 3 bed waterfront apartment at Honeysuckle or 3 bedroom house in Merewether for that - know where I would rather live! Probs got one of his mates in their on a short lease! Ye olde trick!

 

Does look nice. One would ordinarily think over capitalised cause build cost for 290sqm would have to be a cool 600k for one side?, and to buy the site would have been around 800k in today's market (400k per side). Not a lot of profit for the outlay based on market based opportunity cost. Sold last 2012 for $499k, so probs would have made same profit or more by just renovating the house and selling it.

 

More money to be made by just splitting the two blocks retaining the house and renovating it. If it was done nicely the house on 400sqm2 would be worth low to mid $600's. Then you would have a block of land for around 100k to 150k. Block of land in Mayfield on 400sqm2 would be worth at least 400k.

 

Yes, retaining existing improvements is my preferred strategy where possible as that is the lowest hanging fruit. You would probably need to spend 75-100k on modest reno as it needs new kitchen and bathroom. So, I reckon the profit would be relatively modest, but the outlay would be low as well:

COSTS
- purchase price $735k
-stamp $25k
-reno $75k

Total $835,000

REVENUES
-House resale $650k
-Block Land Value $400k
-RE fees (2.5%) $16k
-Interest (3 months) 20k est.

Total $1,086,000

Revenues - Costs = $231k (28% ROI).

Not a bad return. As you say, you get a block of land for around $150k.

You could choose not to do the reno and you may not lose much on the round about since guessing you might get $550k for the unrenovated house in this market anyway - so may not be worth picking up a hammer.

If you built 4 x 3 bedroom town houses, how mch do you think they would be worth each?

 

William Street is not the most desirable area of Mayfield, If they had all the bells and whistles you might get low 600's. Seeing the ones in Carrington Street only got between 600k to 650k.

 

Doculous your numbers look pretty much the same as mine. Dumaresq duplex would be worth around $1m now

But problems with this site from a legal due diligence side was that it was a deceased estate and probate hadn’t even been granted yet.

So that could take up to 4 months to come through. Also buying at auction, there’s no cooling off, you’re taking a punt that everything will be fine with probate, but you’re still putting a 10% holding deposit down (that’s money tied up in limbo) not knowing when you’re going to take possession. In the meantime you could be using that deposit cash to purchase another property or another investment ie opportunity cost.

In addition the house wasn’t liveable, pretty sure a person died in it. Condition was horrendous. So you don’t have any rental holding income either, you just get the land.

Anyway I ran my numbers (adjusted for risk and unknowns) and had my limit on what it was worth for my time. Turns out someone else had a another set of numbers and that’s that.

For a ‘full time’ developer that needs to keep building to generate cashflow, the return on investment is borderline bankable.

I just don’t see the point in doing a development to make mediocre gains when I could alternately invest my money in bank shares and earn a 7% net dividend plus capital growth just by watching TV and twiddling my thumbs.

 

Wasnt meant to be this one, dont think u missed out at all . I was always thought for a deceased estate to be sold the executor of the will must have already obtained a grant for probate and the process is already underway.

I once bought a deceased estate at auction and probate was done within the settlement time of 8 weeks.

Keep looking mate im looking at wallsend. Missed out on nice place at bero the agent said i was the second highest offer and when it sold there was 10k difference between me and new owner ouch !!!

 

Hi lightbulb

Not many development's are matching my investment profile at the moment. I tend to stick with inner city development site's because the land values will always be there.

Very little margin for error when you're paying overs for a development site. Very hard to find value at the moment.

I try to use Warren Buffett's baseball analogy... I think you can apply it to any form of investment.

"The lesson for investors, Buffett says, is that you don't have to swing at every pitch.

"The trick in investing is just to sit there and watch pitch after pitch go by and wait for the one right in your sweet spot. And if people are yelling, 'Swing, you bum!,' ignore them until the perfect pitch comes past."