Keep an eye out on Newcastle, it could be the next big thing
The table is turning, and huge calls are being made to real estate investors to head to Newcastle, a coastal city in Australia.
No doubt, Sydney has been making the giant strides over the years as one of the most expensive cities in the world, but amazingly, Newcastle, a city that is firmly rooted in coal and steel businesses, is now rediscovering itself and has become the next big thing in Australia.
Today, there are huge investments in transport, redesigning and revitalisation of the city’s foreshore, a revitalised local business community whose growth is attributable to a forward-thinking central business district, an upsized university and booming real estate, and a $6.5 billion investment from the New South Wales (NSW) government, which is now making Newcastle investors favorite destination in Australia.
What a fascinating surprise that awaits your arrival in the city.
According to a News.com.au article, Nuatali Nelmes, the lord mayor, said, “Newcastle is on the verge of transitioning from a great regional city to an emerging global city, and the council is doing their very best to attract investment, jobs, and opportunity”.
Owing to this move and projected growth in the city’s population which will be about 33 percent by 2036, as well as a median house price of $530,000, savvy property buyers and real estate investors, are heading to Newcastle following the rise in property rises. Nelmes also pointed out that with more than $3 billion air-marked for total green areas, construction work began to boom in Newcastle bringing about 70 percent increase in approved developments in the past five years. There is renewed greater expectation for the next 12 months with $106 million in building approvals in the first month of the financial year and about $270 million in applications.
So, wouldn’t you invest in real estate in Newcastle?
Furthermore, first-time home buyers especially the local business community in the real estate sector of the city of Newcastle can now enjoy support packages from the NSW government which is designed to give the needed support to first-home buyers who often face some stiff competition. Some of the packages the government introduced include
- The removal of stamp duty on all homes up to $650,000.
- Give stamp duty relief for homes up to $800,000.
- Provide a $10,000 grant for builders of new homes up to $750,000 and purchasers of new homes up to $600,000.
- Remove insurance duty on lenders’ mortgage insurance.
- Ensure foreign investors pay higher duties and land taxes.
- They no longer allow investors to defer paying stamp duty on off-the-plan purchases.
This is a huge bargain for the local business community in Newcastle as the barrier limiting people from entering the market has been lowered significantly. This has also widened the range and scope of properties first-time investors can go for since they are no longer limited to outer suburbs but can now go to inner-city areas.
There is therefore increased financial security since most inner-city properties like apartments, townhouses, terraces, etc., always increase in value over time. Considering the impact of this government policy on the greater Newcastle property market, recent figures from BIS Oxford Economics indicate that regardless of the 11.4 percent growth already experienced in the industry in 2017, about 5.4 percent of additional growth is expected in 2018. What a remarkable joy this will mean to first-home buyers, current homeowners, and the Newcastle real estate market and city alike.
Additionally, education has been the backbone of Newcastle’s transformation in the recent past. The University of Newcastle secured two hectares of land at Honeysuckle for the construction and development of educational, research and industry engagement facilities slated to start in late 2018. This is a top expansion move for the city.
Professor Caroline McMillen, the vice-chancellor of the university and NSW Premier, Mike Baird, both suggested that this level of the project will increase the status of Newcastle as a hub for education thereby attracting more students, inject more construction of new houses, boost local subsidiary businesses, and stimulate the economy. In the same vein, former Newcastle Courthouse at 9 Church Street was auctioned for $6.6 million to a Japanese education group. Therefore with these universities coming into the city, a massive number of 3000 students will move into Newcastle in addition to the current 3500 students which will put a demand for more houses to be built by real estate investors as well as drive up property prices. This city is indeed a favorite among all others.
Without mincing words, Newcastle can now hold its own and is an exceptional city to live and an exciting place for your business or development which translates into massive opportunity for all.
Help for local Newcastle businesses
The Newcastle Chamber of commerce is supporting local businesses especially those in the service industry, providing latest information and assistance concerning business registration, licensing, requirements, and other community development permits.
The business climate is ripe, space has been created, and now the city in Australia where visitors can now call home is Newcastle.
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