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Ryder report: January 2012
Resource, mining towns named top residential investment markets
NSW.Most under-rated market – Newcastle, New South Wales
“While it has a lingering image of smoke stacks and hard times, in reality Newcastle is a prosperous city with a pumping economy and a great lifestyle, which presents as a viable affordable alternative to Sydney. Most Newcastle suburbs recorded price growth in 2011 and some delivered double-digit growth.”New South Wales star performer of 2011- The Hunter Valley
“The Hunter Valley has provided the strongest economy and most active real estate market in NSW in 2011. Singleton, Cessnock and Denman all delivered solid growth but the individual star was Branxton, which showed strong capital gains, no doubt helped by the construction of the $1.5million Hunter Expressway.”
Hi,
When appraising the anticipated sale price of main road properties, consider the type of road & reduce the sale price by a predetermined percentage.
A Highway maybe around 25% a major arterial road maybe 15 to 20% & so on.
Imagine picking up the house & moving it a few streets back to a close suburban street, work out what the expected sale price is, then discount the anticipated sale price by the predetimened percentage.
Regardless of the type of property or suburb, this method works very well & is constant regardless of market conditions.
I hope this helps.
ThanksDid someone say the Hunter Valley!
Plenty of Mining, Great Wine, the most populated regional area of NSW & voted the 7th hottest city in the world for tourists!
a very diverse major mining town.
Hi Jonesy06,
I`ve been in real estate 12 years & now specialise in selling land & working with builders to offer house land packages.
I recieve a call every week from a different property investment spruiker wanting house packages so they can on sell to clients for $30k or $40k more. (we have no interest in dealing with them.)
It still amazes me that buyers dont just visit the land estate, pick a lot & a builder themselves & save the big fees, its not hard!
or visit the unit complex & purchase direct.The reason they want money up front is protect themselves incase you do just that.
Although to be fair to the investment marketing companies (the honest ones) they should be paid a fee for their time & advice as without them a lot of investors would do nothing.
A question you could ask the investment salesperson is `How many have you brought?` & `what price did you pay?`
In my experience most would not buy what they are trying to sell you.
as they say, education is power, educate yourself, surround yourself with various professional people you trust, set a goal & a plan & go for it!you will make a few mistakes, we all do, although it will probably still cost less than the $40k as mentioned above.
I hope this helps,
thanks
Yes Kurri is good too, any suburb with easy access to the coal mines, incomes from the mines are huge, its not uncommon to have a young couple both working in a mine & bringing home a combined $250,000 to $300,000 p.a. or more, these high incomes allow for price & rental growth which is just not feasible in other areas.
The Hunter isnt just a 1 trick pony, besides mining & power generation its also well known for wine production, tourism, breeding/ training race horses & more.
thankschristianb: great advice! & i like your website.
Hi photon,
below is a message i left for an investor looking sub $300k, may suit you aswell.
if the Hunter Valley is on your radar? check out Greta, its an old school ugly ducking, located within the coal coridoor, still afforable & located between Maitland & Singleton, Singleton workers are the highest paid in NSW (excluding Sydney) Pacific National are building a new train maintnence depot in Greta & McDonalds have a new restaurant going in, there are several new land sub divisions coming, alot of the older investment properties being offered are under rented. you will pick up something in your price range & generally the lots are large & some suitable for further development.i have recently purchased there myself.
i hope this helps.thanks,
Hi Thommo,
Newcastle Port is largest coal exporter in the world! & constantly growing, & the Hunter valley wont be running out of coal anytime soon. if you are investing in the hunter property market stay close to the infrastucture corridors, as far as suburbs go that`s a personal choice & depends on wether you wish to be next to a coal mine or not, consider the resale options: will an owner occupier buy the property or will you be limited to other investors.I hope this helps.
thanksHi Sam,
if the Hunter Valley is on your radar? check out Greta, its an old school ugly ducking, still afforable & located between Maitland & Singleton, Singleton workers are the highest paid in NSW (excluding Sydney) Pacific National are building a new train maintnence depot in Greta & McDonalds have a new restaurant going in, there are several new land sub divisions coming, alot of the older investment properties being offered are under rented. you will pick up something in your price range & generally the lots are large & some suitable for further development.thanks,
Hi Chazz,
I wish you well in your hunt for that next investment property, i dont have the answer for you, sorry, although i did notice the Hunter valley mentioned above, if this area is of interest may i suggest you stick close to areas along the coal rail corridor, there are some great suburbs for investment, although there are also suburbs i regularily hear advertised as good investment areas which in my opinion are not, the Hunter valley covers an area of 34,388 square kilometers, there are great buying opportunities although like all areas be sure to do your due dilligence.
thanksHi Jessica,
Development guidelines should be available on the local councils website under DCP.
In the Hunter valley for single level dual occs, say 110 to 130m2 of IFA (excluding garages) for 3 bedders is fine.
Allow circa $600,000 for a turn key duplex, obviously the land price will vary this figure greatly.
Your question of how do you make any money is answered well by Richard – `Jessica you make a profit by buying well.`
buying the land at the right price is paramount to the project especially if you intend to on sell at completion.
an alternative maybe to by an existing house on land suitable for sub division, the income from the existing house helps relieve the financial pressure while you go through the DA process. non income producing land will drain your finances & if the market heads south you may find youself in an unfortunate position, i dont mean to scare you from your epiphany, just be sure you have an exist strategy or plan B. if you find a suitable property & need a second opinion, feel free to call.
thanks,
