NSW Katoomba, NSW

Agree on the craziness in Glenbrook, Bob Shovel - we bought an IP in Blaxland a year ago (unfortunately it is 100sqm too small for a retain and build subdivision and houses across the road are zoned for Accessible housing with ours being under Bushland conservation.)

Interesting that Valley Heights topping the growth list on this one... "let's hype Blue Mountains" ;-)
(also great growth for those in St Clair)

http://news.domain.com.au/domain/re...for-buyers-and-investors-20150620-ghrotd.html

 

My wife and I have been looking keenly at the blueys. One one hand we have been thinking that with expanding of the highway, opening up of western sydney and badgery creek, an investment case could be made for Katoomba, Leura and Blackheath. On the other hand, we are keen rock climbers and aware that we are very likely rationalising a purchase up there based upon our love of the area.

 

A friend of mine bought 3 Leura properties in the last 2 years to rent out to holidaymakers, using a manager. You can check up availabilities on a website. I think he's had enough of banking.

 

Sounds like Mandurah

 

I still remember my drive to Joondalup. the roundabout is massive!

 

As long as they meet the SEPP requirements Council can go jump.

 

Wondering whether Mittagong or Bowral would qualify for the 4 Rs? Anyone on here have a view on the broader Southern Highlands now that Badgerys Creek airport could actually happen in our lifetime?
Cheers Gibson

 

This is a handy resource to look at projected population growth in certain councils.

http://home.id.com.au/public-resources/demographic-resource-centre/population-forecast/

 

They had snow the other day so could become a hot spot for skiers!

 

It's already happened.... this guy was skiing up the Gt Western Highway... past the snowman the kids built in the middle of the intersection.

 

Good amount of snow! How long is the highway closed for?
I remember getting a couple of "snow days" but I had to be ruining late so that the cops had started work before I got up there so I could turn back!

 

Blue mountains threads seem to be quiet. I'm wondering what people's thoughts are on Katoomba. Anyone currently investing in upper blueys?

I bought my first IP in Katoomba in Feb 2015 and had the property revalued this month, with captial growth of ~24%. No renovations or improvements. Furthermore I have had personally, and am seeing solid rent growth.

Has anyone else been experiencing solid figures in Katoomba? How long do you think this growth cycle will last and what price ceiling do you see for this current growth phase? With Sydney prices continuing to rise, this only bodes well for further ripple effect up the blue mountains.

 

@The Dark Knight Nice! Any reason why your waiting for the airport? You'll prob miss a lot of CG on the way. What kind of effect do you think the airport will have on house prices up the mnts? Lord knows if I worked in western Sydney I know where our family would prefer to live (sprawling suburbia vs the picturesque blue mnts towns). Lower blue mountains houses are/have already become increasingly expensive (compared to those further up), and even entry level properties are now pricey. Of course it depends on what properties you're after. Are you developing/Reno or buy and hold? Going a few suburbs further up (esp Katoomba) I still think properties there are undervalued, esp considering what you pay for a few mins down the highway. Like many places in sydney, it's had a stigma in the past, but it's changing. And house price and rent growth there has reflected that. And with the new highway access is rediculously easy all the way up.

 

From what I've seen Blue Mountains is still alive and kicking - due to relative price point (read: ripple effect) it's getting many of the lower price point OOs and entry level investors looking up here looking to utilise Sydney created equity or FOMO saved money.
Open homes are still busy and competitive from what I've seen. (I'm talking mainly upper mountains here)
However there does seem to have been an increase of stock on the market though -
All those who bought 5-10 years ago for <200k now looking at double that or more seems to be enticing. So we may see a more comfortable equilibrium market again soon.
Owning a place in Wenty Falls I'm certainly not complaining

 

Yep, prices still moving along nicely around the wenty area from what i can see.

 

This airport has been talked about for ages it keeps happening and than gets postponed etc. I'd start looking seriously when they actually do some ground work. As your probably aware alot of blue mountains residents are against it and trying to change the flight plans etc. I understand their views but it would have enormous benefits not just for lower mountains but mid and upper. I still work in the mountains and there is not a lot of jobs available. The airport would create a lot of jobs, penriths plans for job growth is going to help as well. Probably even help blue mountains tourism to some extent.

 

I bought my first property in North Leura March 2015 (around 445k) and had it revalued last month. Also saw CG of 30% over the 18 months, so 12-month 20% growth.
I used it as my PPOR for the year so cant say anything about rent.

I did however just purchase a second place as an IP in Mount Vic.

Been looking at properties every weekend for a few months and the general vibe I got was Katoomba and Leura prices have jumped a lot. In Leura 18 months ago I found plenty of places for 300-350k that needed some work but sat on 1200sqm blocks. Recently I couldnt find anything under 400. It seems the 400-450 range held a lot of average properties that have been on the market for a while, and a lot of nice properties that have been getting snapped up in a week or two.

My thinking is hardly any room for extra supply, better highways, sydney prices pushing people out, regardless of the blueys once being a Tourist or Weekender area people will surely start moving up to commute to Sydney. I sat on that train from Leura to Sydney CBD for a year and its the best decision I made.

If you look at populations upwards from Springwood, Leura has ~4000, Katoomba has ~8000, Blackheath has ~6000. So theyre the big hubs. As they get more expensive, the surrounding suburbs will be next right.
Blackheath has a lot on offer around 450k. Mount Vic which is only 10 minutes up the road has much nicer places on offer for 400k.

I would think Katoomba down will grow a lot as Sydney workers start commuting on the line.
Katoomba up to Mount Victoria im not so sure about as its pretty far. I just got my place up there as a first IP, so my fingers are crossed, but if it was a sure thing prices would already reflect that. But mid-mountains prices are up, sydney is pushing people out, new trains on the way. My guess is young families wanting to establish would start moving up beyond Katoomba, as well as existing blue mountains residents being pushed further from buying up there, thus starting to rent. So thats my expectation of Mount Victoria and blackheath- not much capital growth, but good rental growth in the coming few years.

 

Little update from afar, I don't know what crazy business is going on in Katoomba but just had a property upfront valuation last week and have had a increase in 100k (by the same bank) in the last 4-5 months. I'm wondering if we are nearing the peak of this blue mountains cycle and if it's worth taking equity of the table soon. It's been growing steadily, but the last few months have been on steroids, exponential. Properties are going under contract and selling fast based on what I'm seeing on realestate and domain. Much faster than this time a year ago. Anyone that live up there can give some ontheground insight? How much steam is there left in this ripple effect from Sydney? People that have seen previous cycles, how does this area usually progress following Sydney? I know there are more and more jobs and infrastructure going west, including the airport. Will this change the usual blue mountains cycle and now make it more of a legitimate alternative to western Sydney rather than just for the cashed up buying weekenders? Thoughts?

 

I bid at an auction in Blackheath last weekend. The property had been bought for 500k in 2015. I was prepared to pay up to 785k. Got beaten by 2 bidders who went to 841k.