Hi,
We have $50,000 saved up and wanted to buy my mother in law a place to live in, around Newcastle. We have looked at Mt. Hutton, Mayfield, Charlestown, Wallsend, Cardiff, Edgeworth and Gateshead as these are suburbs you can obtain an older house for about $200-220K. We don’t want to spend too much as we won’t be charging full rent (so it will be very neg. geared). It is mainly to give her a place of her own but don’t want a losing investment either. So we need to make up for the loss in rent by getting some capital growth. Does anyone have any thoughts on these suburbs or would you stick closer to the beaces and get a unit?[cigar]
Mutant
South Newcastle is going along quite well.
Chief,
I am in Newcastle and am pretty up to date with the local market.
Prices seem to have levelled off and vendors are opening up to offers more so that they were. Although I do hear that things are picking up a little atm.
Some of those suburbs you mention are pretty rough. I wouldn’t put my mother in them (Mother in law would be a different proposition I think [biggrin]).
Certainly buying a unit closer to the water would give you reasonable growth prospects in my opinion.
What does the MIL want? A house or unit?
If you are local please give me a call and perhapswe can have a coffee.
Yorker – We have no suburb called South Newcastle – which areas are you referring to? Southern suburbs adjacent to the CBD or the entire area south of Newcastle right down to Lake Macquarie? Certainly the whole Hunter region has had great growth in recent years.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 9853 year fixed rate – 6.85%
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Was refering to the southern regions of Newcastle. Had a good deal of enquiry into Toronto and areas close by.
I guess to an outsider this is all Newcastle – but Toronto and the surrounding towns are actually in Lake Macquarie. an area I am investigating myself.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 9853 year fixed rate – 6.85%
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
“we won’t be charging full rent (so it will be very neg. geared).”
The Tax Office might have something to say about that-negative gearing losses as a result of non market (no arms length) rent.
Ajax
Thanks for the tips.
Ajax,
If the rent is at market rates, I understand there is no problem. However where do you look up market rates, or are there no such ATO guidelines?Simon,
MIL will take a unit or house. She is happy to settle down somewhere for many years to come, rather than renting form palce to place. I am treating this not only as her home, but an investment too. We are open to any suburbs that have an above average chance of returning decent cap growth in the longer term.Mutant
I will check my crystal ball when I get home tonight [blink]
cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
3 year fixed – 6.57%Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Newcastle appears a very sound investment. Great work guys.
Hi There Chief,
Well its good to hear that you are looking after the MIL many wouldn’t[cigar]
As i am now living in Newcastle i have spent many days pounding the pavement and i have to agree with a few of the suburbs you mentioned.
I still believe that Charlestown will see continued capital growth and also what i will refer to as industrial suburbs of Newy ie. Mayfield,Tighes Hill,Maryville, Wickham Carrington ETC. So much money is being spent near these suburbs i dont think you can loose in the long term.
Toronto is not really in my radar -HOWEVER- if it had lake views yes yes yes but for 200K i donnt like the chances.
I do believe that you wont see much change from 250K in any suburbs that i have listed but it would be worthwile keeping your options open you may find a good deal.
Good lck and feel freeto PM me for any local info if i can help!Sooner or later the man who wins is the man who thinks he can
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