NSW Katoomba, NSW

Hi guys,
What do we think about Katoomba? I do know the yield hasn't been great over past years, but could it be a good move?

There aren't too many rentals around, the roads have improved and as ppl start to work from home a bit more, could this help Katoomba?

Gracias

 

The upper mountains is mostly a tourist based economy, although quite a few commute to Penriff, Parra & even Syd CBD. The recent bushfires put a dent in the local economy & tourist numbers plummeted as did employment.

The big plus is the 4 lane highway is almost finished (only the Bullaburra section is still undergoing roadworks) - ETA end of 2015 - only 5 yrs late! And the Hydro Majestic has reopened after a $15M reno, so there is some investment in the area.

IMO the best way to approach it is holiday letting - airbnb or similar. Find a weatherboard with slow combustion heater within walking distance of shops or views & away from train line. It should be +ve c/f after all costs & then wait for the CG ripple to arrive.

And there is a fair bit of the undesirable element, so pick your streets carefully.

 

Always surprises me how Katoomba remains so unrewarding. It's such a great place and really so close to Sydney, especially with the road upgrades. Plus, so many people now live in the mountains.
And yet, it remains the same.
The 'village' certainly isn't a friendly place and there are heaps of tourists and it's usually snowing or raining there. Certainly cold.
I'm keeping my eye on it though. There are some great old houses and art-deco apartments with amazing views.
Blackheath has come along a bit lately.....

 

the blue mointains as a whole is fairly unrewarding! it has so muxh potential but just exists. glenbroook and leura would be standouts for flash houses and nice feel, mostly due to city slickers gentrifying the area. as a tourist destination it is an "average" but does have such incredible natural wonders!
we've been travelling around a fair chunk of tge country and its below average

 

Not the best option for an IP FWIW. As pointed out it has a very seasonal appeal.

The area has a conservative council and all too many nimbys in the area.

Bush Fire zoning is cost prohibitive.

I recall someone who was glad to have offloaded their 'dream' of running a Blue Mountains B&B.

.

 

investment wise though thereis very limited space for new land releases, so there is potential there... but with tourism infrastructure etc lagging cant see much changing. plus dealing with blue mtns council is a nightmare! so developing is likely very costly.

its a tough areawith all the green tape

 

Keith is on the money re: tenancy style. Short stay is the way to go up there. Perhaps not the best CG prospects (I could be wrong) but people will pay a good deal per night/week etc for a place as lots of tourist activity occurs up there.

I don't think it would be difficult to be cashflow positive from day one on a 105% financed property up there.

As aside: I host guests on Airbnb in my place sometimes and quite a number of the international guests have headed to the Blue Mountains.

 

I'd agree with much of the above -

• BMCC is a PITA - v. slow & v. picky.
• it's full of nimbys (inc me )
• Virtually all building must be BAL40 or higher - adds 25% to cost of build
• Very seasonal - lots of visitors in autumn/winter - roaring fires, falling leaves, Winter Magic (known locally as feralfest)

I wouldn't agree that it's unrewarding though -
I bought a block for 180 in 1999, a similar block sold for 480 in 2011, and again sold recently for 375.
The last upswing happened after people realised they had equity in their Sydney property & decided then 'needed' a weekender in the mountains.
A $1M property in the mountains was a rare thing back then, but now there's lots of sales over that.

I've been getting flyers from REAs complaining about lack of listings & vouchers for free appraisals - this week only!

 

i think cg just follows the ripple from penrith but nothing fantastic. the highway works may be the last big infrsstructure works for a while id say

 

where do you hail from keith? im originally from emu.
love feral fest!! haha iworked in bleakheath for a few years putting in the sewer. k town has the most diverserange of locals ive seen! rich tourists, poor backpackers, normal local types, junkies, hippies, other types i cant describe!

 

KTown is v diverse - it's the 4 Rs - rich, retired, ********, renting.

 

That's hilarious keithj.

 

I'm thinking either the mountains or Central Coast, But I think both areas have the 4 R's there.

This place caught my attention.
http://www.domain.com.au/for-sale/11-freelander-avenue-katoomba-nsw-2780-2012043332?topspot=1

 

Hmmmm, there's housing commissh at the junction with Camp St.
It's on the 'wrong' side of the highway.

Matt Grima says

- ask him if it's approved ?

 

Wow, it's beautiful.

 

Very funny on the 4 R's comment about Katoomba Keith!
I've always found it strange that although they are next to each other Katoomba and Leura are so vastly different!
Any thoughts on the Glenbrook and Blaxland market from those with experience?

Thanks in advance

 

i think you may have missed the boat bwinny. i think they jumped with penrith.
unless you want to get into developments.
hsve you seen the price of glenbrook! those retirees have some cash to throw around! but in saying the surrounding towns to g'brook would be thepick. also lapstone i feel could be a sleeping village forgotten about

 

And religious is the 5th R.

Another issue with BMCC has been their attitude towards granny flats - they considered them not appropriate for the community.

However, apparently this is about to change on 1st July.

 

wow that will be a big change. plenty of suitable blocks... but where will everyone work??

 

Well I went and saw it yesterday and it was actually pretty nice. A bit low though. Agent said flat downstairs was approved...would need to confirm.

Already 2 offers above $400k on the property.

I also spent time at the festival up there which was nice. I think Katoomba has changed a lot over the years and will continue to improve. It's just so cold, but some people love that.

As for lapstone..there is never anything on the market there.