There are two main types of investors. We’ll call them the Financial Investor and the Planning Investor
The Financial Investor is looking for a better return on his money than the banks can currently provide. The Planning Investor is looking now for a home to retire into “in a few years time”
They may be looking for slightly different things.
The Financial Investor is looking for a single level house, in a quiet street, close to public transport and schools. He/she is looking for a property with street appeal, an easy care garden, a good kitchen and bathroom. They’ll want at least 2 bedrooms, a garage and some off street parking and maybe some creature comforts like built-in robes.
The Financial investor is looking for an area with high rent returns and strong potential for capital growth.
A recent story in The Newcastle Herald reported that Lake Macquarie property values are increasing at a faster rate than those in Newcastle.
Figures released in the Domain House report have the median price for a house in Newcastle at slightly more than half a million dollars now. In Lake Macquarie the median price for a house is $489,000.
Domain chief economist Andrew Wilson said the Lake area was experiencing a property boom, because of its attractive lifestyle and its closer proximity to Sydney.
“There’s still room for growth there,” he said. “I think it’s becoming more and more attractive as an option for those people traveling to Sydney to work who want a different lifestyle. And there are those who are just looking for a green change.”
The Planning Investor is looking for a block they can build on when they retire, but has a serviceable house on it until then. The block will, ideally be big, level and an easy walk from shops.
It would be close to the water, boat ramp, or would have views.
The Planning Investor travels from their current home to look for a place ‘not too far from their kids’.
Both types of investors are looking in the lower to mid price range, so from $600,000 to $750,000, which may substantiate why there is strong competition for homes within that price bracket.
We tick all the boxes here, plus we have great schools, a world class University and a fantastic Lifestyle.