Where in Newcastle region

Hi All,
Looking for some advice re investing in the Newcastle region.
Looking to pay up to 500k, something that will pay for itself is more important than CG right now. As I live in WA I want low maintenance that I don't need to worry about. Does such property even exist now??
Ideally looking to avoid strata...any help/advice would be greatly appreciated.
Thank you

 

You live in WA. Why Newcastle? What pointed you to this region? @tomlemke is on the ground and probably a good sounding board.

 

Well I am certainly not interested in investing in WA that's for sure. I don't think its a wise decision.
I am originally from Sydney so that would be my choice if it was an option but with my budget its not therefore I want to look in regions just outside Sydney. In the not too distant future I believe people will choose to live in Newcastle region over places like Penrith ( of curse this is already happening ), I may also return to the East coast one day and really cannot fathom living in Sydney myself unless I come into some millions and can shack up on the Northern Beaches lol

 

northern beaches would be great but I have issued with public transport. Newcastle has seen a huge growth in the last 12-18 months. More so with the suburbs close to the city like Mayfield, Lambton, Merewether etc. $500K will limit you to few suburbs IMHO but others who have invested will be able to tell you more. This thread might be of interest to you NSW - Newcastle Property 2017

 

You won't find anything in Newcastle or Lake Macquarie under 500k that is cash flow positive. You could add a granny flat but that will cost you over 500k all up. Houses around Birmingham Gardens, Jesmond, Wallsend etc are around mid 400's now.

I wouldn't be investing in Newcastle at this stage anyway. It's had very good growth over the last 2 years. With Sydney now coming off the boil you can expect the same in Newy within 6-12 months.

 

Thanks Larry have read through that thread

 

I would agree. It's more of a CG play but how much more gain, is a difficult question. Where are you looking now atm? I have been looking at QLD but still not convinced.

 

Thanks Biz, any other suggestions then within the NSW region

 

Not looking anywhere now. We're upgrading PPOR building a new house for us this year. Can't see us buying anything for a long time.

 

For under 500k? Can't see any value anywhere now. We've had 5 years of very solid gains nearly everywhere, markets are starting to correct. Not a buy signal to me.

 

Thanks for your honesty. I have been procrastinating for 2 years on buying an investment property, I need to make it happen this year whether its prime time or not

 

Why? Do you turn into a pumpkin if you wait?

 

haha no.....maybe I'll just invest in some good old WA lithium for now instead

 

don't rush into it.

 

the lithium or the IP? ;p

 

try Hobart - momentum is still building here

 

Buying for just cashflow is a risky game, opportunities still exsist in Newcastle for neautrally geared properties but not without strata. Newcastle has had strong growth since 2012, i would be hesitant to buy something now as an I.p with your criteria. You are going to be buying something that’s not going to have any value add potential on a small block of land. You could be waiting a while before you start seeing any Growth.

I bought my last ip in 2015 as I thought it was close to the top so I’ve been wrong before.

 

Thanks Tom. Neutrally geared is perfectly fine, of course the long term goal is CG but for the next 5 years or so I'm not fazed if value remains stagnant.
Where would you look to based on my criteria? Would you look in a different region or have a different strategy
Any advice appreciated

 

New Lambton / Mayfield / cardiff all have 2-3 bedroom villa still selling between 400k to 500k. Few examples below.

Rental return would be close to 5%
Unit 4 5 Baker Street Mayfield NSW 2304 - Villa for Sale #126849666 - realestate.com.au Unit 4 5 Baker Street Mayfield NSW 2304 - Villa for Sale #126849666 - realestate.com.au

126B Brunker Road Adamstown NSW 2289 - House for Sale #127215526 - realestate.com.au 126B Brunker Road Adamstown NSW 2289 - House for Sale #127215526 - realestate.com.au

This one doesn’t fit your low maintance stategy but good buying at low 400’s and on a decent block of land.
17 Cedar Street Cardiff NSW 2285 - House for Sale #127253166 - realestate.com.au 17 Cedar Street Cardiff NSW 2285 - House for Sale #127253166 - realestate.com.au

 

Thanks Tom, very helpful. Mayfield was an area I was thinking. I also found this in Birmingham Gardens
Homesales