NSW Next Investment Property

Hi Team,

I am still looking to purchase the 3rd investment property for my porfolio as the property in Ballarat fell through.

Currently both I.P's run 5.5% gross yeild and have a 600k +/- pre-approval. I'm not looking to spend more then 450k on this one.

Currently looking in Central Coast places like San Remo, only issue is that the blocks around 400k aren't sub dividable.

What are the feelers like currently for Central Coast? I remember even 10 years ago that people were waiting for it to boom but it never really happened......

 

Hey @jaconde86 - Are you saying you have a $600K approval, but you're only looking to spend $450K? If so, how come?

Central Coast has actually delivered pretty good growth over a 10 year period- San Remo median house price has increased 70% during this time. Future growth on the Coast will continue to be driven by young families or retirees exiting Sydney for lifestyle and affordability benefits.

You could expect the short and long term impacts of Covid-19 (WFH etc) to amplify this- current supply / demand scores are quite high, suggesting short term capital growth can be achieved. All of the top 15 highest DSR scores for NSW houses are regional, which certainly tells a story!

In terms of suburb choice, the demographic composition of San Remo is pretty ugly versus other parts of the coast, but I could see how you could arrive here- cheap buy in prices, solid yields and low vacancy rates. This is the type of area that benefits from macro property booms, where the rising tide will lift all ships. Outside of these growth cycles, I'd expect crappy tenants and lots of headaches. Mount Druitt by the beach. So just need to be sure this fits your risk profile.

Are you specifically looking for a block you can develop?

 

Thanks for the feedback @fols and sorry for the long delay!

Yes, I gave San Remo a boot tbh. What areas do you feel have the right factors with minimum headaches
I've been up in Newcastle for the past week and also have a property in Newcastle already. I feel areas like Charlestown with 700-800 + SQM blocks with buy-in price of under 600k is a steal. Great suburb, close to everything, lots of cranes and infrastructure going in.

For the 600k max, we are then fully leveraged (until my commission starts being accepted by the bank in 6 months time), then we should have a fair bit more to play with. We are just looking to not max ourselves out as yet.