NSW South Coast - Shoalhaven

@Brian84 It totally depends on your circumstances and your definition of +cf - its not hard to get gross rent to cover interest only payments, but true +cf would be net rent covering all costs, much harder. As I said what are your expectations, perhaps post a sample set of numbers you are hoping to achieve with ballpark budget?

Correct @SK Investments - the NSW Affordable Housing SEPP NSW Legislation
makes it possible on many housing blocks over 450m to achieve a secondary dwelling if drainage, sewer and easement + a few other conditions are met. I have had a few investors achieve 7% total yield in 5% suburbs with this strategy. It requires work though. Either to approve and build, or retrospectively approve something that was build prior to the policy.

 

I'm still trying to work the process out. Not sure exactly what to factor in and how to work out the numbers. I still have a bit to learn.

 

Hey @Brian84 PM me if you need a hand.

 

Thanks sk. I might send you a message tomorrow.

 

Depends which suburb. There are plenty of places where the yield is mediocre, but might be more likely for CG in the short term. But the converse is true as well

 

And that's the million dollar question. Where to buy? Something I'm still working on.

 

That's the good thing about the cheapies (eg. South Coast), you can go for one and be ready to get number 2 quicker, than buying one more expensive and having to wait quite a while for #2.

 

I was looking at Warilla... it has moved a lot.

 

Yea I'm looking for the cheapies. Max $350k

 

Yep. Bang on. Just buy the potential, add a little value and avoid anything dodgy.

True it has. I believe there is still steam left as it is so landlocked, but it is well off the base and yields on purchase have fallen.

If you want to buy at the bottom just head south. In super rough terms for this cycle my gut says put Warilla at 50% up, Nowra at 25% up Ulladulla at maybe 10-15% up and Batemans bay 0 to 10% up. So if you want to beat the ripple just head down a bit. Do you want all the growth with a slow start or fast growth from day 1 but pay a little more? That is the cost of betting on an established trend.

Good price range, can still get options under that, as above just avoid dodgy areas, hug the infrastructure, beaches, shops, schools, hospitals etc and get enough land for future dual occ would be my suggestion.

 

Do you know what min block size must be for a duplex. I might be able to borrow between $500/550k.

 

Thanks Matt for the insights. Would be nice to spread purchases afar.

 

No easy answer as I work across about 3/4 councils, they are all different. Also it depends on zoning in each council. For Shellharbour and Shoalhaven they are wildly different LEP's. Shoalhaven (assuming you are priced out of Shellharbour, which you may or may not be) is 500 for building a d/o but not subdividing, 700 in some areas and 800 in others for for subdividing. If you wanna do a straight block subdivision (not building dual occ and subdiv at the end) then you need more land, like 1250 plus, depending on zoning again. There is R1 (general residential) R2 (low density residential) and R3 (medium density residential) all with different rules. Sorry, would love it to be uniform and simple but it aint.

 

Thanks Matt. $500k is max I could borrow at the moment for investments. That is just an estimate at the moment until we get a full valuation done.

 

No dramas @Brian84 hang in there I am sure your path will become clear. When sorting your lending out make sure you talk to a good broker and leave some buffer funds available in case you ever need them its better than maxing out completely.

 

I have a good well known broker from the forum and he is great. I had to get rid of my other broker to be able to move forward even though he was family. It was a hard decision but I felt he didn't have my best interest first before his.

 

Investors yes!
Tourists no!
Why we’re all going to Jervis Bay

 

Good move the forum brokers are a cut above the average and you need someone who actually understands investing, many don't.

"Not a bogan in sight" I love that quote - just not sure how entirely accurate it is.

 

Yep, it's count the new Commodore utes in some areas.
They must've missed the boat ramp.

 

Matt- my cousins husband who I was using before is an investor himself but he was more worried about how much he would make rather than what's best for the client (myself).