Investment property in Gateshead has done poorly for investors when compared to the country as a whole over the last 12 months, with an increase in the median house price of -8.70%
The five-year average increase in median property values for Gateshead,2290 has given property investors a potential capital gain of 32.08% across each of those five years.
Sellers are offering property buyers an average discount of -5.97% to buyers in Gateshead at the moment, which is less than average for the rest of NSW.
A $385 per week rent on the median house gives suburb investors a gross yield of circa 4.77%, without taking into account capital value appreciation, which has been averaging out at 5.20%.
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The suburb has been racking up around 10% average annual growth over the past 10 years; however, growth over the past 3-5 years has been well below that. There are now signs that the property market is on a rebound.
Gateshead is one of the few suburbs in the Newcastle region where you can count on finding a house for under $300,000. It is just 6km to the beaches at legendary surf spot Redhead and a quick commute into Newcastle. That is moving the area up on the lists of first time home buyers especially, says local agent Damon Ellis.
“You’re seeing a lot more activity there recently,” he says. “For example, I’ve got a couple who are looking at buying in Gateshead at the moment and they’re relocating from Queensland and their main things are affordability and being close to the beach. Redhead has recently become one of his favourite surfing spots.”
Ellis says investors are also starting to take notice of Gateshead, which boasts strong rental yields of above 6% and a tightening rental market. The expanding Lake Macquarie Private Hospital means investors can count on a good pool of medical professionals looking for rental housing.
Best street(s): Goundry Street: A broad street with good access and several charming brick homes.