Newcastle but where ?

L

Logan

I am looking to purchase an IP in the Newcastle area but with so many suburbs I am heading into analysis paralyses territory. I am going for the buy and hold strategy with possible cosmetic reno. For my overall strategy to work I need CG of at least 5% first year (but the higher the better).

I have narrowed down the suburbs I am interested in to:

Islington / Tighes Hill / Hamilton / Wickham

The Junction / Mereweather

Maryville / Mayfield

Adamstown / Kotara

Waratah / Georgetown

My budget is 350-500K depending on the price point and I would like a yield about 4.5-6%

I have grouped the suburbs based on what I believe they have recently achieved in terms of growth (the Hamilton group appears to have done the best). I am just worried if I purchase in one of my top groups then I may have missed the growth boat and I will miss the opportunity in another group such as Maryville. Conversely I wonder if Maryville is also over for high growth and I should move onto the next group !

Any suggestions ?
 
Logan said:
I am looking to purchase an IP in the Newcastle area but with so many suburbs I am heading into analysis paralyses territory. I am going for the buy and hold strategy with possible cosmetic reno. For my overall strategy to work I need CG of at least 5% first year (but the higher the better).
Click to expand...
You should achieve that in any of the groups you have selected.

I have narrowed down the suburbs I am interested in to:

Islington / Tighes Hill / Hamilton / Wickham

The Junction / Mereweather

Maryville / Mayfield

Adamstown / Kotara

Waratah / Georgetown

Logan said:
My budget is 350-500K depending on the price point and I would like a yield about 4.5-6%
Click to expand...
....and I want World Peace :)
Seriously, you are not going to get a 6% rental yield in any of these high CG suburbs.

Logan said:
I have grouped the suburbs based on what I believe they have recently achieved in terms of growth (the Hamilton group appears to have done the best). I am just worried if I purchase in one of my top groups then I may have missed the growth boat and I will miss the opportunity in another group such as Maryville. Conversely I wonder if Maryville is also over for high growth and I should move onto the next group !
Click to expand...

Your groups should be:
1. Islington / Tighes Hill / Hamilton / Wickham / Maryville / Mayfield / Waratah / Georgetown

2. The Junction / Merewether

3. Adamstown / Kotara

Group 1 would be your best bet, even now.
Group 2 your budget does not allow.
Group 3 is more family / suburban, whereas Group 1 is more trendy inner ring and should do better long term.
Mayfield for example has done 16% CG averaged year-on-year for the last 15 years.

Just my 2c worth.
 
Thanks Alan

World peace is also on my agenda but may take a little longer :)

I have only just started looking in Mayfield but had some concerns it may be too far out, conversely the entry point is still lower than Hamilton and Islington so my thoughts is that it might 'catch up' ?
 
Logan said:
Thanks Alan

World peace is also on my agenda but may take a little longer :)

I have only just started looking in Mayfield but had some concerns it may be too far out,
Click to expand...
Nope, not too far out. But personally I don't go out as far as West Mayfield - a bit too industrial.

Logan said:
conversely the entry point is still lower than Hamilton and Islington so my thoughts is that it might 'catch up' ?
Click to expand...
That's a judgement call you'll have to make. :)
 
Propertunity said:
You should achieve that in any of the groups you have selected.

I have narrowed down the suburbs I am interested in to:

Islington / Tighes Hill / Hamilton / Wickham

The Junction / Mereweather

Maryville / Mayfield

Adamstown / Kotara

Waratah / Georgetown

....and I want World Peace :)
Seriously, you are not going to get a 6% rental yield in any of these high CG suburbs.



Your groups should be:
1. Islington / Tighes Hill / Hamilton / Wickham / Maryville / Mayfield / Waratah / Georgetown

2. The Junction / Merewether

3. Adamstown / Kotara

Group 1 would be your best bet, even now.
Group 2 your budget does not allow.
Group 3 is more family / suburban, whereas Group 1 is more trendy inner ring and should do better long term.
Mayfield for example has done 16% CG averaged year-on-year for the last 15 years.

Just my 2c worth.
Click to expand...

All of these suburbs would be good, tighes hill especially at the moment is said to be performing well.

Personally I like waratah.

Have to say though for $350k it will most certainly be a fixer-upper!
 
Yep def agree with waratah

I think Georgetown is certainly a place to consider also !

My list for newcastle would be
Georgetown
Hamilton North
waratah
Garden suburb
Toronto( great council lake mac)
Boolaroo
Warners bay
Kotora south
And as mentioned wickam and Hamilton South

I personally just can't see the prices cooling
Around Adamstown mereweather junction
And the like
 
Just spoke to Globe reality about listing one in Mayfield West , he says he had
a cash buyer in a few days ago looking for a quick sale , said its still hot in the area.
 
nww said:
Just spoke to Globe reality about listing one in Mayfield West , he says he had
a cash buyer in a few days ago looking for a quick sale , said its still hot in the area.
Click to expand...

Sounds about right they dont seem to last long these days from what im told.
 
In your price range I'd be a fan of Islington, inner Hamilton, Maryville, Tighes Hill and Wickham ... and even then you'd be really struggling to find something.

You've missed the boat on Merewether, The Junction or Adamstown unless you're looking for a unit.
 
Propertunity said:
The difference is the agent behaviour in different geographical locations.
Click to expand...

Yeh sure - so all across the nation when the market was hot - in recent times sydney, melbourne, perth, even muswellbrook when it was hot you could go down as see 50-75% of properties under contract but they dont' do that in Newcastle only ?

That must be a huge coincidence then, that area is the only area in Australia that does it and you just happen to be trying to make a living in and drumming up business in that same area...
 
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