Property Sauce Property Investment in Australia

Real Estate

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Newcastle and Hunter Region NSW Australia Property Investment Research
  • 1. Property Overview Hunter Region
  • 2. Hunter RegionWith a population of over 620,000, the Hunter Region is the largestregional area in Australia and home to more people than the State ofTasmania, the ACT or the Gold Coast. The region is the powerhouse ofthe NSW economy and one of the powerhouses of the Australianeconomy.With business confidence at an all time high, it has emerged from alargely coal & wine producing area to become a diverse industrial base,employing workers over many sectors & benefitting from rapidlygrowing infrastructure & commercial spending.
  • 3. Property SelectionOur acquisitions team is strongly focused on providing the residentialinvestment property purchaser good quality investment properties, inhigh capital growth corridors, with strong employment, strong rentaldemands and access to public transport and amenities. Infrastructure spending – current & planned Population Growth & High Capital Growth potential Strong rental demand with above average rental yields Significant negative gearing & depreciation advantages Spacious designs with low maintenance exteriors
  • 4. Area SelectionWith all the Property Selection aspects in mind we have identified thefollowing areas within the Hunter Region: Muswellbrook Cliftleigh Cessnock RutherfordThese areas satisfy the criteria of population growth, employmentgrowth, capital growth, rental yields above 5% p.a. & increasedinfrastructure spending.
  • 5. Muswellbrook - Map
  • 6. Cliftleigh - Map
  • 7. Cessnock - Map
  • 8. Rutherford - Map
  • 9. Projects & InfrastructureWe have identified the following Projects & Infrastructure within theHunter Region which we feel will influence property prices in the region. The Hunter Expressway Resource Sector Solar Power Generator Other Facts
  • 10. The Hunter Expressway The $2b project which is the Hunter Expressway will provide a 40km dual carriageway with interchanges at the F3 Freeway, Buchanan, Kurri Kurri, Loxford, Allandale & Branxton. It is expected to reduce travel times between Newcastle and Branxton by 28 minutes and relieve surrounding roads of between 15,000 and 30,000 vehicles per day in the areas around Rutherford, Maitland, Thornton and Newcastle. Construction will occur between 2010 and 2013 and will generate around 2,500 full time jobs in the Hunter. Improvements to infrastructure will see greater efficiencies in the transport of agricultural and resource products to market.
  • 11. The Hunter Expressway
  • 12. Hunter Economic ZoneHEZ will be Australia’s largest continuous industrial zone providingthe ability to offer a home to large scale industrial occupiers,previously forced to go to other states or overseas.It is fully serviced by road, rail, power, gas, sewerage, water andPowertel cable.It represents the biggest injection of employment-generating capitalinto the area in a generation.As part of the State Government’s Lower Hunter Regional Strategy,HEZ will be instrumental in the development of the Lower HunterRegion and is expected to contribute up to 15,000 new jobs andbring more than $1.1b to the local economy.
  • 13. Resource Sector $1.1b Mangoola Coal Mine Muswellbrook – one of the largest in NSW. $320m expansion of BHP’s Mt Arthur mine – increasing production to 15m tonnes p.a. Major expansion of coalfields in Gunnedah & Narrabri with a $580m upgrade to the rail system between Gunnedah and Maitland. Hunter Mines Authority predicts 25,000 new jobs to be produced in the next 4 years. In 2009 coal seam gas producers Santos & Eastern Star announced negotiations with Newcastle Port Authority to build a liquefied natural gas plant which will put Newcastle in a position to rival Gladstone.
  • 14. Solar Power Generator The Federal Govt. has announced that the Hunter Valley, with its coal-fired power stations & CSIRO energy research centre, is ideally placed for the Solar Research Scheme. Liddell is home to a ‘demonstration scale’ solar plant that the Federal Govt. described as a ‘very good example’ of what the Govt. hoped to achieve. The Federal Govt. is planning to build the world’s largest solar generating plant – a $4.2b project which will be 3 times bigger than what currently exists in California.
  • 15. Other facts....Largest coal export port in the world, produces 40% of Australia’saluminium & generates over 90% of NSW’s electricity.Equine capital of the Southern Hemisphere.Newcastle Airport traffic numbers have soared from 214,000 in 2003to well over 1 million in 2009 – over $130m planned to be spent.Manufacturing employs over 27,000 people.Vineyards produce over 42 million bottles and over $200 million insales annually.Two of the biggest Defence bases in Australia – Singleton &Williamtown.7 million tourists visit the region each year.
  • 16. In summary – the numbers... Area 4 Bed 2 Bath 2 Garage Expected Rental Yield Priced from: Cliftleigh $399,500 5.60% Cessnock $408,950 5.30% Muswellbrook $353,500 6.50% Rutherford $416,950 5.50%Plus – don’t forget the NSW Government changes to Stamp Duty forconstructing houses – no Stamp Duty payable for houses under $600K.
  • 17. DisclaimerPlease note that the information provided in this presentation is general information only, is subject tochange without notice and should not be relied on as a substitute for legal, financial, real estate orother expert advice. Whilst great care has been taken in its preparation, Property Sauce and itssubsidiary companies disclaims all liability and responsibility, including for negligence, for any direct orindirect loss or damage suffered by any person arising out of any use or non-use of this document orany information or material from it. Nothing in this presentation, including the comments and remarksof the presenter, should be considered as financial or accounting advice.This presentation may contain forward looking statements about the company’s or developer’sdevelopments and/or areas estimated performance, infrastructure, construction time, inclusions,economic factors, loan products and other items, some of which are from third party providers. Thesestatements involve risks and uncertainties, and actual results may differ. The company assumes noobligation to update any forward looking statements or information, which speak as of their respectivedates.All information contained herein is gathered from sources we believe to be reliable. We have notverified that every piece of information is accurate, and do not have any belief one way or the other inits accuracy. We do not accept any responsibility to any person for its accuracy and do no more thanpass it on for discussion. The builders and/or developers represented reserve the right to make minorchanges to the developments to comply with local council or other guidelines.All interested parties should make and rely upon their own enquiries in order to determine whether ornot this information is, in fact, accurate and suitable for their specific circumstances, needs andobjectives