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marc | 29 Mar 2013, 11:09 PM Agree 0

Hey guys, my name is marc and I'm looking at buying a IP in the south coast town of shell cove. It seems to have various infrastructure upgrades in the pipelines, eg, stockland shellharbour, and the shell cove marina which has recently commenced construction, average rent is around 520, I'm looking for strong long term capital growth and good rental yields, help !!!
  • Eos Property | 30 Mar 2013, 12:52 PM Agree 0
    Hi Marc - are you looking at the Stockland properties? And are these off the plan?

    Just doing a quick look around there are some alarm bells for me.

    According to Wikipedia SC has a population of 2800 and it would appear as if you are buying/investing on what MAY happen. Given the size of the community any hiccups along the way and your investment could be well and truly exposed.

    I am not a broker but I expect you may have some issues getting high LVR borrowing facility on property in such a small locality. The ease of finance is a key ingredient in any property investment decision. The harder suitable finance is to obtain the more constrained the market becomes.

    If the property you are looking at is off the plan then you may encounter all sorts of financial issues as you will have to go unconditional in a matter of days and banks will not unconditionally lend finance unless the property is completed and they can value it. This can only happen when at the end.

    If the property is OTP be very wary - valuations often have a habit of coming in low with OTP purchases.

    PS What sort of price are you paying on a property renting at $520/week?
  • Dan | 09 Apr 2013, 12:20 PM Agree 0
    Eos Property you need to look at the greater Shellharbour area not just Shellcove. The Shellharbour greater area is the fast grouping community on the South Coast with many businesses (like you big department stores) moving out of Wollongong to the Shellharbour area.
  • Eos Property | 28 May 2013, 09:22 PM Agree 0
    Hi Dan,

    Thanks for the correction - just shows not all research can be done from the web.

    Be interested to hear what the underlying drivers for Shell Harbour/Cove are. Why is it growing so quickly?

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