Cessnock investment.

P

property69

I am thinking of investing in Cessnock for rental yield?

What are peoples experiences in this area?

There appears to be great returns to be had in the area.

Thanks
 
You will find good bargains in Alkira Ave - there was a bunch of recent sales for around the $120k mark. Spend $25k on reno and rent out for $270 easy for week.

LJ Hooker usually auctions them as they are ex HC.

Regards

Shahin
 
Hi
I bought a three bed weatherboard IP house on close to 800sq m in 2004 for $150K now around $245K but needs renovation (kitchen,bathroom,front fence - in original condition since I bought it)

Never had any problems renting it - currently at$270pw but will go up with the renovation. I get my PM to review the rent yearly and have increased it by increments.

Mine is a few streets away from the main street (Vincent St) and also close to schools. I was told on the hill near the hospital is the creme de la creme area.
I was also looking at Kurri Kurri.
 
We live near Cessnock (Pokolbin) and have an IP in Cessnock ... bought for $350 and, at the time, rent was quoted at around $450/wk ... currently rented for $360/wk as the market demand in that "higher" range has dropped significantly.

That being said - it is a real buyers market here atm.

But now the news is out that a major employer (Mt Thorley mine) will start to wind down from 2015 due to Land and Environment Court knocking back a mine expansion ...

I still think there are bargins to be had ... but it would have to be a real bargin.
 
Most of the local mines have also put off most (if not all) of their contractors - which relates to many hundreds of workers.

We will keep our rental as the market will improve at some stage and rent covers our mortgage payments (due to 80% lvr interest only) - so cost nothing to hold atm ... but don't know if I'd buy any more.
 
Thx Lizzie for your local knowledge.

Nor sure if I can ask on this tread or not, but what about surrounding areas such as Kurri Kurri and Maitland.

Thx
Tgan
 
Kurri is in even more dire straights ... but Maitland has diversity, so a better bet.

Personally, if you can afford it, go Newcastle itself.

A good indicator of whether to buy in an area is "has it be discovered by investors". Once a location has been found by the "top ten" guru's then, in my opinion, it's usually to late to buy in for that cycle.
 
I looking for a house and land preferably.

Looked at a house today 3 bd 1bth decent backyard for 199,000$


Rent 255 pw.

What do you think ?
 
Alkira Ave is also known locally as SIN City, most of East Cessnock gets tarred with this brush. Good numbers but good tenants stay away and the repairs bills can eat up the profits. I was turned off recently for a sale 2 streets over from Alkira where the property manager wouldnt even go there to look at it for me - the PM didnt want to manage it - I recently bought in Aberdare instead.
 
I spent a few months poking around in Cessnock/Kurri Kurri and surrounds, about a year ago.

It seemed houses were being held on to tightly by locals expecting a price jump after the highway opened up (Kurri more-so). I just didn’t see it, or why the rents would remain so high after all the well-paid construction workers left town.

Housing comission areas showed good returns, and it helped that agents would shake their heads when I enquired about those areas (named SIN CITY as previously mentioned) :p

That was just my impression, obviously there are deals everywhere, personally felt it was quite speculative and the time to buy was before they built the maccas etc.

Money better spent in Maitland/Newcastle IMO.
 
has any body looked at east maitland?
according to local real estate agents, this area has softend a bit, but not still not as bad.
 
OK thanks for all of your replies.

I will keep searching.

Do you feel that maitland has more opportunities?

I an basically just looking strong yields
 
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