HI,
I am new to property investing and looking for my first deal/Reno. I have come across the Hunter region, in particular around the Cessnock, Kurri Kurri area where plans are in progress for the largest industrial development in the country, called HEZ. This project is set to bring in 10,000 jobs with the first businesses on the site in 1Q 2006.
Has anyone come across this area? Do you think Cessnock, Kurri Kurri is a good place to do a Reno?
Cessnock, Kurri Kurri are old mining towns, I was out there last weekend on a fact-finding mission. When driving around they appear to be, well, not very attractive towns, will this have an impact on my investment success?
Thanks
LukeHi Luke,
You may have missed the boat on these areas. I brought my first little house in Kurri Kurri in 1995 for 54k. Conservative value of that one is now 250k.
On a positive note these towns no longer rely on mining and are not mining towns in the true sense of the word. The mines are anout 1.5hrs away by road. The areas rely heavily on service industries and argriculture and tourism. As you would have seen this is wine country and every time you look there is a new resort or golf course getting built. All the support industries are also moving closer to the area.
HEZ has been looming for some time and is coming at exactly the right time. I had hoped that the project would not get launched during the crazy boom that occured last year.
HEZ as you say is the largest project of its type in the country. With the freeway at its doorstep this places this development the same driving time to Sydney CBD as western Sydney so you can see the sort of impact it will have on a town of 10,000 people. It will probably change the face of this whole area.
Unlike many developments HEZ is designed for small to medium operations. The area could support literally hundreds of different small businesses. Pre sales indicated that these businesses are relocating from Western Sydney, Blue mountains and greater Newcastle. The roads are built and it is all about to come online.
If you dont already know land in this council area that is 2a residential and over 1000sqm will support a 4 unit development so you really need to try and source larger blocks. Council was recently talking about reducing the number of units allowed to be built on blocks this size. I am not sure what they have decided. Time will tell what impact the project has on the area. If you are seriously interested I would speak to some of the smaller developers around town to see what the trends are.
Good Luck.
Thanks for the reply Guys.
Would be interested to know what kind of a place you have in Kurri? My wife and I saw a few places, 3-bedroom fibro, clean on the outside with much needed updating internally, but with some original features on about 800sqm for $160,000 to $180,00. Land value is about $130,000. With about $20,000 Reno seems they fetch about $240,000 to $260,000. Does this sound right to you?
Your right, there does seem to be more townhouse style developments going up, my wife got home today said here friend was building two townhouses in the area.
Luke and Jodie
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