NSW Areas of value on the NSW coast?

It looks like up and down the NSW coast prices have had their run off the back of Sydney. Are there still pockets of value available? We are looking for a house along the South Coast to use as an IP or holiday rental, preferably under the $500k mark.

 

@BuyersAgent might be able to provide some insight - he’s the south coast guru.

Cheers

Jamie

 

Thanks @Jamie Moore ...

Howdy @ouffamon yes this is the sort of thing I am doing on a weekly basis. Short story the south coast still has loads of potential (I am biased but I have evidence) based on both demographic trends and infrastructure spending at present. Rentals and basic investments are easy sub $500k. Holiday homes a bit trickier as most of the beachside stuff is from around $500k and up but its still possible, especially if you are willing to renovate in that price bracket.

The sneaky stuff is finding extra potential like room for a granny flat or (even better) dual occupancy subdivision down the track so you have maximum upside regardless of market movement. That is a good portion of what I am doing with clients at the moment. Whatever you do make sure you do your research, as some pockets are much much better than others.

Matt

 

Has the market come off in and around Jervis Bay eg Vincentia, Hyams Beach etc?

 

Overall things have slowed a bit but well located and priced properties still sell quickly and for strong prices. Boomers are still leaving the capitals and paying cash down here so I have seen a couple of properties sell above my expectations. Demand is patchy and location sensitive that's for sure. For renovators and rougher properties things are a bit softer so it is really nice to be able to negotiate more strongly and pick up some bargains - that wasn't really the case last year.

 

How did you go @ouffamon?

 

Is it worth considering a look around the NSW coast with 300k? I can probably go to 400k with a bit more leverage but a positive cash flow is a must for me.

 

It depends how you define +cf and your specific numbers as to how possible it is. There are a lot more options gained by adding $100k so yes it brings in a lot of extra stock but does it increase the cash flow? Not sure. It definitely grants options with better CG prospects and houses v units etc

 

I would also be keen to know people's ideas of areas to look at at the South Coast.
Is anyone familiar with Batemans Bay and surrounds?

 

I read on here that sometimes it's good when there is a bad or incomplete ad for a house.
This one has just come up, it says 4 bedroom but it's actually 5 bedrooms - that's a lot of house for that price!
Rang up, all of the inside has been renovated, 3 bedrooms upstairs, downstairs developed into 2 bedrooms and a living area, newish kitchen. I went past and had a sticky beak, looks like a quick paint with a modern colour scheme would update the outside and bring it up to comparable 5 bedroom houses. I see potential
Walked down the walkway, looks like a decent backyard too:
45 Edmund Street, Sanctuary Point, NSW 2540

 

Albion Park bypass planning already well underway, politicians posturing on what to do about Nowra bypass.... something will be done. That'll make a pretty clear run Sydney to Batemans.

$300m of state funding for bridges and $150m for a region hospital.

Nobody seems to know what will happen in the next 1-2 years but if you're in it for 10 years, it seems like a given.

 

Yep this is in the southern half of my buying patch which goes down to about Narooma at the southern extremity.

There are some great pockets, some expensive, some cheap, some nasty with social housing and issues, so choose carefully. At this stage the major road spending is at the northern end of the coast (but just south of Wollongong) starting with the Albion Park Bypass (commencing early 19) Berry Bypass (was just done early 18) Berry to Bomaderry dual carriageway (just started during 18) and then there is the hospital at Nowra over $400m, new bridge at nowra, and I know the local members are pushing hard for some major improvements between Nowra and Ulladulla but those are not approved yet.

The safest bet for Batemans Bay is that long term those road improvements make the trip from Sydney faster and easier, but that they will take a few years.

Remember that the major market for there is actually Canberra. If you believe some retiring baby boomer govt employees will head down the hill to the closest beach (something plenty are already doing) then you will probably agree that this should put nice upward pressure on the good housing stock, certainly the beach fronts and everything with a view. Agree with @JLK this year is wobbly due to the bank stuff and media stuff but once that passes I can't see it doing too badly medium term.

 

Just wondering if you know how long the drive from Canberra down to Batemans Bay is now?

 

2hrs without pushing the limit, pending Canberra traffic and exact starting point. I do it a lot, its quite an easy drive these days, Kings Hwy bends are still there but they have done a lot of work to the worst bits.

 

@DeJ the nerriga road is the one from Canberra they have been progressively working on, making the trip to Jervis Bay and northern shoalhaven more direct on sealed roads.
MR92 - Nerriga Road

 

Yes, I have done the one that comes out at Turpentine Rd several times. Much better now that it's sealed.
A long time since I've done the Batemans Bay to Canberra road.

 

this one will bring 6-10x the cars to the Shoalhaven compared to the Canberra road imo.
Berry to Bomaderry - Princes Highway upgrade

 

Looks like it will be a much more efficient way of getting more cars into the bottlenecks in Nowra

 

so what's like now in south coast with bushfires, covid and the impact of lending?

 

A while back I was looking at a cheap acreage in south Nowra for about 400K.

It was roughly 5 acres but a battle axe in Hillcrest Ave. It was close to a new shopping centre say less than 1 km.

The funny thing is there were some greenhouses on the property but no actual house. I naturally took interest.

I was thinking sub division or maybe some primary production.