This is a generalisation.  Prestige homes or suburbs catering to families may see the added value in pools, whereas inner-city or coastal properties may not.

2 – Bank Valuations Are Always Conservative

Valuers must act independently and should not be influenced by the party seeking the valuation.

If you live or would like to live in the Newcastle, Lake Macquarie, Central Coast and would like to get a report on your suburb contact us now

Little-known Dudley heads RP Data’s Top 100 growth suburbs, with mining towns prominent and prestige suburbs absent

In a recent publication RP Data has placed Dudley at number 1 in the top 100 capital growth areas for the 12 months ended June 2012, this demonstrate the desirability and affordability  of  Lake Macquarie and Newcastle for home buyers

Little-known Dudley heads RP Data’s Top 100 growth suburbs, with mining towns prominent and prestige suburbs absent

By Larry Schlesinger
Monday, 01 October 2012

Dudley, the southern coastal suburb of Newcastle that started life as a coal mining town in the 1880s, has ranked as Australia’s number one location for house price growth, according to figures compiled by RP Data.

The latest Top 100 suburb report, which examines median dwelling value changes for the 12 months to June 2012 is heavily populated by regional locations close to mining activity, which make up almost a third of locations on the list.

Dudley secured top spot on the list by registering a 35.7% increase in dwelling prices over the year to June from a median of $394,000 to $535,000.

The prominence of Dudley and 11 other Hunter regions in the top 100 reflects a trend of dissatisfied Sydneysiders, many of whom have been priced out of the market, heading north and buying in the more affordable suburbs of Newcastle and nearby Lake Macquarie.

What is now a coastal suburb with waterfront properties, began life as a South Burwood Colliery in 1885 with sinking operations commencing in 1888. In 1898 a methane gas explosion killed 15 miners.

Grainy turn-of-the-century images show Dudley as an industrial town dominated by the Dudley Coal Mine, a far-cry from its current status as a lifestyle destination and short walk to the beach for many residents.

An advertisement for a clearance sale of Dudley township allotments in 1927 by the Dudley Land and Coal Company Estate shows 47 homesites for sale requiring a 20% cash deposit and monthly repayments of £1 a month on a 5% interest rate.

RP Data national research director Tim Lawless attributed the growth to a combination of increased prices and extra house sales.

Dudley recorded 32 sales in the year to June compared to 21 in the previous year with Lawless adding that its growth was also due to it being a small housing market, which have volatility.

“It’s a market close to the Hunter, close to resources, it’s got lifestyle and is close to thriving mining regions,” Lawless told The Weekend Australian.

Second on the list behind Dudley is the Queensland mining town of Collinsville in the coal-rich Bowen Basin region in central Queensland (prices up 34.9%) followed by another coal mining hotspot, Moranbah (34.2%).

WA’s Pilbara mining region is also strongly represented with South Hedland and Port Hedland ranking in the top 10 and notable for their high median dwelling prices – $898,000 and $1.28 million respectively.

Top 10 suburbs for house price growth

Source: The Weekend Australian/RP Data

The Top 100 also reflects the declining or stagnant prices in many prestige suburbs with only five suburbs with a median dwelling price of $1 million or more making it onto the list.

They include Cremorne on the Sydney north shore, which ranked 63^rd with prices up 14.7% to a median of $1.63 million and Hawthorn East in Melbourne, which ranked 40^th with prices up 17.2% to a median of $1.3 million.

The other million dollar suburbs on the list were all in Sydney namely, Connells Point (up 15%, $1.9 million), Russell Lea (up 13.8% to $1.19 million) and Milsons Point (up 16.2% to $1.11 million).

The list includes just one Tasmanian suburb – the scenic township of Cygnet, which ranked 35th with median dwelling values up 17.6% – reflecting a 4% fall in median house prices on the Apple Isle over the past year.

Census 2011 data shows that Dudley is predominantly made up of houses (83.3%) with half of dwellings having three bedrooms and more than a quarter having four bedrooms or more.

The property investment market in Dudley is relatively small with just 22% of Dudley homes available for rent compared to 30% across NSW.

The average monthly mortgage repayment is $1,800 per week with just 8.5% of Dudley residents technically in mortgage stress (mortgage payments are 30%, or greater, of household income) below the state average of 10.5%.

Recent sales around Dudley (post code 2290) include this five-bedroom, two-bathroom house at 49 Oceanview Parade, Charlestown which sold for $442,000 through Cveta Kolarovski of PRDnationwide Newcastle & Lake Macquarie.

It previously sold for $367,500 in February 2008.

Mary Sparkes from Creer Property – Charlestown sold this two-bedroom ground floor unit with garage on Milson Street for $248,000 aimed at the investor market.

Median rent in Dudley is $280 per week, according to census 2011 data, providing an indicative rental yield around 5.9%.

It is so important when applying for finance to show you have savings in a transaction account, whilst at the same time, paying out credit cards or reducing/consolidating the number of cards. Deferring the application may be worthwhile.

The solution now is to apply to a lender who does not credit score and maximise the strength of the borrowers.  

As can be seen in this latest RpData report rental yields are still attractive. For a detailed report on any property contact us now

This is valuable information if you are buying or selling, these reports cover many suburbs in the Hunter, Newcastle, Lake Macquarie, Central Coast, Port Stephens, Maitland and Cessnock. You can get a report on any suburb you would like simply by requesting your report here

In a recent article Michael Yardley published 7 reasons Australian property won’t crash, it is worth the read

Since the RBA announcement the banks have during the past two weeks passed on some of this reduction. To see what has been passed on and other valuable information view my latest newsletter here

By: Simon Parker

The Reserve Bank’s 50 basis point cut to interest rates yesterday was long overdue and should spur prospective property buyers into action, various industry professionals have claimed.

“Times have been tough in the housing market for some time and buyers have been waiting for this downward movement in rates,” said Real Estate Institute of SA (REISA) chief executive officer, Greg Troughton.

“Now the trigger has been pulled, we can expect some more activity in the marketplace over the coming months.”

Real Estate Institute of Australia (REIA) President, Pamela Bennett, said the RBA’s decision to cut the cash rate to 3.75 per cent was the right one but will do little for the economy if commercial lenders fail to pass it on in full.

“It is now on the big lenders in particular to restore faith with the Australian public, pass on the rate cut in full, and give our economy the shot in the arm it so desperately needs,” Ms Bennett said.

If the 50 basis points cut announced today is passed on by the banks, it will save $91 per month off the average mortgage and will make home loans around 4.3 per cent more affordable for Australian families.

Ms Bennett says while this cut is long overdue, it is most certainly a welcome step in the right direction to stimulate the lower end of the market and to make buying a home more affordable for young Australians.

“First home buyers are starting to return to the property market but the level of activity is still only about half of what it was in 2009 and affordability has plateaued,” Ms Bennett said.

“We desperately needed this cut and we’re pleased the RBA has finally decided to respond appropriately. Of course, it will count for little if we don’t now see corresponding action from the major lenders,“ Ms Bennett concluded.

Angus Raine, CEO of Raine & Horne, agreed. “If a lender doesn’t pass on the full rate cut, homeowners should consider shopping around for the most suitable mortgage,” he said.

Real Estate Institute of Queensland (REIQ) CEO Anton Kardash said the low inflation result had given the Reserve plenty of room to move.

‘‘Today’s rate cut is great news for everyone working in the Queensland real estate sector with the market just starting to show signs of improvement following a particularly difficult 2011,’’ he said.

The REIQ added that the interest rate reduction was also timely given data released yesterday showed that the number of new detached house sales in Queensland dropped by 15.3 per cent in March – a concerning statistic to come to light on the same day that the Queensland Building Boost expired.

‘‘It is imperative that lenders pass on this rate cut in its entirety to help restore economic activity and confidence levels. Indeed, lenders’ continual excuses about higher funding costs are not only starting to sound very stale but also increasingly self-interested,’’ Mr Kardash said.

Need more information contact Channel Direct Home Loans and receive property report on any suburb

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