A friend is thinking about buying a residential property in Newport for the purposes of capital growth.
What do people of think of Newport as a capital growth suburb?
Personally, I prefer North Caulfield.
Rhys_Roberts,
Caulfield North and Newport are in very different market segments.
The median price for CN is around 1.3mil, whereas Newport is around 530K.Personally, I think Newport, Spotswood, seddon and Yarraville have great potential.
I prefer Yaraville and Seddon over Newport with similar prices.
Newport is affordable and relatively close to the city. I suspect Newport will have okay growth
However Newport is reported to be at risk of raising mortgage defaults.Kenny
"Newport is reported to be at risk of raising mortgage defaults"
what does that mean?
Haven’t been unable to recover the news link.
It just means that people who recently bought into the area, they are more susceptible to mortgage default (ie, cannot afford their mortgages, and likely foreclosure, when the bank steps in and sell the property from under them).
I’m assuming they are basing this on the number of people under mortgage stress (any household with mortgage repayment over 30-40% of their household income).If large number of people default, it will mean large supply of houses on the market. This can potentially drive down the prices in Newport. However, it is just a possibility. But still worth keeping in mind when purchasing.
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