NSW Where to buy IP in NSW for $600k for Capital growth

Hi All,

I am looking for suggestions please on where are the seasoned investors from PC buying nowadays? Looking for something in the range of $600k.

I already have an IP in QLD and VIC each so preferring to buy something in NSW, dont think I can find much in Sydney in this budget so might have to move to regional area. Not very positive about Adelaide (my understanding is average capital growth has been 3.5% or so) and Perth. Happy to hear other views though if there are strong opinions on buying in other states than NSW.

My aim is to add another solid investment grade property in my portfolio which can give good capital growth with decent rental yield around 4.5% or so to let me hold the property. Also looking if property has development potential to manufacture equity in future by renovations or subdivision.

At the moment , totally clueless on which area to buy or from where to begin my search.
Thanks!!!

 

There are many areas from Newcastle, through the Hunter Valley and on the Central Coast that will deliver what you are looking for. The market is hot but there are still good buys available if you are prepared and willing to act accordingly.

Best Wishes @SydneyInvestor!!

 

Thanks @Josh Desmond .
Can you please help me with any link or online info where I can check for pointers related to suburbs in these areas.

 

@SydneyInvestor at around the $600k mark you will get a good foot in Newcastle. The fundamentals apply here as you would normally expect. Look for proximity to jobs, lifestyle attractions, amenities and transport if you are playing the long game. etc.

Like many markets at the moment, Newcastle is highly competitive, fast moving and lacking quality properties due to low stock on market. If you are committed to going alone, I would contact a few of the bigger Property Management Groups and ask them where people want to live, where are they bashing the door down at.

But, I guess I'll be a nice guy and give you a few starting points. Try Adamstown, New Lambton, Georgetown and Mayfield at your price point. Some of these will be tougher than others to enter but if you are prepared to make it happen you will.

Goodluck Mate!! Maybe I'll bump into you at an open home....

 

Thanks a lot mate!
Let me start some research...

 

I have to agree with @SydneyInvestor. Just to add, I think anywhere within a commutable distance to Sydney, say a 1 - 1.5hour drive, should be fine. If COVID-19 has done anything good, its that people learned by experience that they could work from home and go into the office 1-2 days a week. So why live in Sydney? Just be close enough to commute but use the NBN for everything else.
Areas like South Coast, Blue Mountains, Central Coast / Newcastle are all experiencing sales demand.

 

Guys, bumping this thread to get any more inputs if possible....
Also, any views on areas which could be benefitted from new airport?

Thanks

 

Hi @SydneyInvestor - I hope your search is going well. Here are a few suburbs that could be of interest which are less than $600k median price and greater than 5% capital growth (5 year annual compound).

Newcastle - Mayfield, Wallsend, Waratah
Maitland - Tenambit, Thornton, Telarah
Liverpool - Sadleir, Cartwright

Source: whatsuburb

Good luck and happy searching.

Complete transparency - I currently work for this company. By no means are my feedback pretending to be customer of the business and violate the rules of the this site. We're simply seeing if our tool can help people researching.

 

Central coast, $600k might can find you some house, the rental yield there is better than Sydney and value quite strong not influenced by Syd market.

 

Hi SydneyInvestor - as fumid said above, I would consider central coast area. I already have an IP in central coast which I bought from under $600k a few years ago, and I still think you can get something for that price now. Central coast has decent yields and has solid capital growth drivers in my view, including alot of new infrastructure and improved transport links for faster travel between Sydney and Central Coast.

Another area you might like to consider is Western Sydney past Blacktown area closer towards Penrith.

I also agree about Adelaide, there's not enough happening there at this stage.

 

Thanks @propman247 , yes the tool is very good , have used it couple of days back.

 

Thanks @fumid and @PropDir , would you have any suggestions for any suburbs to begin my search with..

 

Central Coast: Dreaming beach life, around 60km north from Sydney ,train station, ferry from palm beach, Sydney to Ettalong Beach, some people from Palm Beach have holiday houses there, and people have family there and work in Sydney by train/car. The demand there is continuously high for buying/renting.

postcode 2257
Beach side: Umina Beach, Ettalong Beach, Black Wall
Hill/ Water views: Empire Bay
postcode 2260
Beach side:Terrigal, North Avoca
Big land house (over $600k) Wamberal
Postcode 2256
By Transtation: Woy Woy

 

Hi @SydneyInvestor, How did your research of the Newcastle market fair?? Did you like the look of it or it's not for you? As others have said, there are options in the Hunter Valley and on the Central Coast also but I personally believe Newcastle is the better market and $600k is enough to get up and running.

I would really like to get into this market myself but I am currently buying in Brisbane for Tax Purposes. However, I will be buying here for my sister once her finances are sorted and I wouldn't put my sister in a location I didn't believe in. None the less, let me know where you end up buying.

Cheers!!

 

Thanks again for the pointers @fumid , really appreciate it.

 

Hi @Josh Desmond , I havent started real deep search yet but on realestate, I can not find much quality in Newcastle in that 600k mark. May be I need to know exact suburbs which have those price level properties.
I am also thinking of engaging a Buyers Agent now... lets see how it goes....

 

Hi SydneyInvestors - attached are 3 suburbs that I like. The first 2 (Lake Munmorah and Blue Haven) are in the Central Coast area, while the third one is in Western Suburbs (Penrith).

As you can see in the 10-year growth chart, the prices in these areas have grown over that period, but I wouldn't call it explosive. You may like to explore areas in and around these as a starting point.

If you find the attached screenshot useful and you are looking to explore and research these suburbs deeper, you might like to subscribe to the Professional plan offered by my company here Register | PropertyDirector. It will enable you to research any suburb in Australia, review capital growth for last 30 years, get detailed demographics on each suburb, and allow you to view all suburbs on a map to identify specific areas you might like to invest in.

Hope this assists and all the best. B.t.w. if you are looking to invest, I think around June next year may be a good time to invest - I think interest rates will still remain low and prices may stabilise or drop - I am looking to get in to the market at around that time too.

 

Which Sydney suburbs have not grown over the last 10 years?

 

As with a lot of markets at the moment, low stock is not helping anyone. The homes exists, the agents just can't get enough on the market for us to buy.

Exploring Maitland and it's surrounds might be more suitable at the moment given the price range. Lorn or East Maitland as options. But again, super low supply.

Goodluck with your hunt for a BA ;D

 

My point is, while the suburbs have growth over the 10 years, the growth has not been explosive, and I believe there is good capital growth potential for the future.