NSW Blue Mountains for mid $400s?

Discussion in 'Where to Buy' started by aarond, 24th Oct, 2019.

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  1. aarond

    aarond Well-Known Member

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    Hello PropertyChatters

    I have a unique situation where relatives are looking to sell a mid-1980s 3-bed 1-bath 90sqm unrenovated brick veneer cottage in the mid mountains. The block is 469sqm with lovely gardens, easy walk to the bush, but not walking distance to rail.

    I was originally thinking market value would be low-mid $400s, but seems like things have moved a bit in recent months as some agents have appraised around $500k, with rental at around $400pw.

    If I can secure with a bit of a discount (maybe mid $400s?) due to no agent, less stress for sellers, flexible transaction terms, lease-back option, etc. I would like to hear the forum's thoughts on this...

    - what it's like on the ground up there - seems as though sentiment has improved in the last few months like for the rest of Greater Sydney?
    - Boom times ahead? Flat for many years, or a dead-cat bounce?
    - Is the lack of employment and development in the Blue Mountains a cause for concern? Or is this offset by Badgerys Creek and other infrastructure upgrades aimed at GWS?
    - I am thinking of doing a budget renno on the kitchen and bathroom ($10k-$15k)...worth it?
    - Is my money better off elsewhere with better yields?

    Keen to hear any thoughts...thank you in advance!

    Cheers
    Aaron
     
  2. Trainee

    Trainee Well-Known Member

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    What do your relos want for it? Remember if they feel youve screwed them over on the price, future xmas parties will be unpleasant.
     
  3. aarond

    aarond Well-Known Member

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    We were all thinking early-mid $400s initially, but obviously things have now changed.

    Definitely not trying to rip them off and any price will be by agreement. They have always intended to sell a bit below market to save on commission, uncertainty, stress, hassle, and to have flexibility...and I was open to buying it to cut out the middle man and make things easier for them in (what was) a buyers market.

    Just concerned I'd be buying at the top with the growth ship having completely completely sailed, and not coming back for another decade, when I could have bought something better...
     
  4. Trainee

    Trainee Well-Known Member

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    the unpleasant chrissy in reverse then.
    If this is an concern, dont buy from family. Even if you buy at market, it does well and they are unhappy with you. It doesnt do well and you are unhappy with them.
     
  5. aarond

    aarond Well-Known Member

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    They are looking to sell anyway as they are moving inter-state.

    But yeah, for sure, I'm not wanting to buy something that's not going to do well....hence asking my questions above about the market :)
     
  6. ashish1137

    ashish1137 Well-Known Member

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    Mid 4s, renting for 4s. You dont get much options like these.

    The opportunity is good. Even if you save 4% to 7% buyung from relatives.

    Positives and negatives in all strategies. Your best bet is tslking to rental agents to seek opinion.

    If rental demand is decent, it might be a good option. Unless you want to invest and are comfortable and know the markets interstate.
     
  7. Scott No Mates

    Scott No Mates Well-Known Member

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    Only buy from elderly relos, at least they will pass sooner rather than later. :oops:
     
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  8. Gockie

    Gockie Double boosted!! And still covid free. Premium Member

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    Well, if they move interstate, they mightn't be bothered to track if the Blue Mountains house prices are rising or dropping into the future, they might just be happy to sell the property to someone they trust and move on with their lives.
    lol :oops:
     
  9. bob shovel

    bob shovel Well-Known Member

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    im interested in your appraisal as lower mountains have dropped, following closely behind sydney. There is a lag that follows on from sydney up the hill, so mid may be peaking and about to drop if not already dropped. check out the groeth charts but likley flat for the net 5 years

    but as for development there is no more land to release so the mountains will have the scarcity factor. no locals want development although the grubby state government are trying to push. and dont go asking about the airport! you'll get chased out of town!
     
  10. aarond

    aarond Well-Known Member

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    I actually have a couple of IPs in Tasmania with yields approx 5.5%, and where I live in Bendigo high 4% yields are pretty normal.

    The agents I've spoken to seem pretty bullish about prices...but perhaps it's not in their interests to say anything else? They seem confident in rental demand too, even though SQM is showing a frightening upward trend of vacancies...

    Lots of things to consider...maybe too many...perhaps I've got a bit of analysis paralysis? o_O
     
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  11. aarond

    aarond Well-Known Member

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    Yep this is how I think it will pan out...they don't really follow the market closely...which is probably why we are all surprised at the steep valuations!

    At the end of the day I don't want to rip them off...I just want to make sure I'm not buying a dud!
     
  12. ashish1137

    ashish1137 Well-Known Member

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    I have been buying buying in vic, tgough i live in sydney.

    I also keep on seeing opportunities where 60k to 90k can be made with 5% yields from day 1.

    NSW is a different beast. Land locked on 3 sides. Another thing to consider is that people who stay there will not trade their place for anything. Sales numbers from previous years should be a good indication.

    I still believe NSW at low price point offers good buy, irrespective of the place or distance provided you are within 1.5 hr commute to cbd or 1 hr to parramatta or any other major suburb.

    Regards
     
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  13. aarond

    aarond Well-Known Member

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    Thanks Bob - yes those were my thoughts exactly - I thought it was in the doldrums up there. However we've now had several agents (including a couple from down your way) say that since the election and since the rate cuts, the mountains as a whole are back.

    I was talking to someone who used to be in the know with BMCC, and he said he had never seen so much heated debate between elected councillors before - apparently at one point an even split between ALP, Libs, Greens and Independents...very politically vexed patch of the world it seems!