The local property market is booming right now.
Throughout Newcastle, Maitland and Lake Macquarie, we’re seeing intense competition across all market segments but especially in the sub-$600,000 market.
So what kind of property are we talking about and what could you afford if your budget is less than $600,000?
Who is buying at the $600,000 price point?
The market under $600,000 is driven by first home buyers and investors, who often compete head-to-head for properties.
The price point is significant because $650,000 is the usual cap on the first home owner’s transfer duty exemption – although it is temporarily higher at $800,000 for new homes, and a concessional rate applies to purchases under $800,000 for existing homes and $1 million for new homes.
The NSW First Home Owner Grant also applies to new homes worth less than $750,000.
Meanwhile, investors buying at this price are hoping to snap up a bargain and keep costs down and yields high.
We also see some involvement from downsizers and tree or sea changers, keen to take advantage of the great lifestyle on offer in our area. However, they are not the same force in this market that they are at higher price points.
Prices are rising
Those looking for property under the $600,000 mark should act decisively. Right now, the property market is experiencing a mini-boom, the likes of which we haven’t seen for some decades.
CoreLogic data from May 2021 shows that housing values have been rising rapidly, increasing 6.8% over the past three months to be 10.2% higher than the COVID low in September last year.
Locally, Newcastle’s median house price grew 11.9% in 2020 – or double the national average – taking it to $671,500. And many of the suburbs in Lake Macquarie and Newcastle already have median house prices of between $700,000 and $800,000.
That said, it is still possible to buy under $600,000, even in areas where the median has been pushed far higher. You may just need to settle for a unit, villa, or smaller property.
If we take a look around we can see that some suburbs and areas have median prices below the $600,000 mark according to realestate.com.au, making them very attractive to buyers in this price point.
For example, the median house price in these areas is under $600,000:
Cardiff South: $560,000
And in many more areas, the median unit price comes in under $600,000.
What $600,000 buys you today
There are a wide range of properties you can buy under the magic $600,000 mark in our local area. Just what it buys depends on where you’re looking. In inner Newcastle or the most premium parts of Lake Macquarie, you can probably expect a villa or unit. However, in other parts of Lake Macquarie or Maitland, your money could stretch to a house or even a generous block of land on which to build your new home.
Properties we’ve recently sold for $600,000 or less include:
2/29 Tallawalla Road, Valentine
A quality two-bedroom villa offering low maintenance living, this property sold for $600,000.
15 Herbert Street, Belmont
This two-bedroom cottage on a flat block and in a great location in Belmont sold for $527,000.
7/14 Hall Street, Belmont
This amazing townhouse in Belmont has three bedrooms, generous living areas, a lockup garage and an additional study. It sold for $600,000.
11 James Street, Windale
Right near Redhead Beach, and sitting on a large 800sqm block, this two-bedroom cottage sold for $537,500.
21 Northcott Avenue, East Maitland
This solid three-bedroom house in East Maitland sold for $585,000.
7/50 Robert Street, Jesmond
A two-bedroom unit with additional sunroom could have been yours for a very affordable $350,000.
1 Portland Drive, Cameron Park
We currently have new release land available for under $380,000 in Cameron Park.
If you’d like to know more about buying or selling in Lake Macquarie and the Hunter, get in touch.