Investing in Newcastle from Sydney – Part Three

It’s been a while since I last posted the previous two parts, so to recap, the unique market conditions of Newcastle are it has a large amount of flood prone land and that proximity to railway stations is not as desirable as it is in capital cities. The next most important point is availability of off-street parking.

It is fairly obvious that with a lack of quality and efficient public transport through out the wide spread city, travelling by vehicle is the most common method of transport for people in Newcastle. The simple fact that it is practically 20 minutes drive to almost everything you could possibly need means that even the humble uni student drives to uni.

So with this in mind, you must only consider an investment property with parking. If it doesn’t have parking, it should have the ability to create it. Even a studio in our CBD should have a parking space if you are considering a purchase. While there are many that don’t and the argument that the choice of transport will change with the light rail is sound in theory, it will take a long time for the habits to change.

Besides, properties with limited or no parking, from my experience in sales, take much longer to sell, even more so when there are limited on street options. I mentioned Carrington previously, Cooks Hill is another suburb where parking is a premium and it is unwise in my opinion to buy a property without parking from a rental perspective as well. For example, if the area has a large number of properties with parking, it is an expectation and the property doesn’t have parking, you are significantly limited the type of tenant and future buyer for the property.

When it comes the type of available parking, this is critical as well. Some areas there may be more garages than carports or car spaces it would be wise to consider this when buying. If you are buying well enough in an area where there isn’t a garage or carport but the ability to build one, this might be ok. However if the property is in an area where most homes have garages but it has a car space or simply a carport this could also limit your potential tenant or future buyer. When considering a unit or apartment, I prefer garages in unit blocks and ideally have storage for apartments.

While some may think I might be a bit picky here, its about the long game. If there is a market correction and you have to sell or even when its time to move on from the property, its better to be in a position of strength and have a property that has the broadest appeal across the widest cross-section of potential buyers or tenants. For more information on how to best position yourself in the Newcastle Real Estate market, get in touch today.


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