NSW Mossvale NSW long term prospects

Hi all

My son has been working in Mossvale for 3 years as an assistant driver on freight trains. He is currently renting a room.

I am trying to encourage him to buy a house and perhaps rent 1-2 rooms to help cover some of the costs.
He lives for today and needs a 'push' to plan for the future, and has no experience in real estate. We can help him with a deposit, but would be nice to think that if he moved somewhere else in 5+ years that any property he may buy now has a good chance of increasing in value?

We/he may be looking at real estate prices up to 600000. What do people think of Mossvale growth/future demand.

He loves to fish and tows a big boat down the mountain pass to Greenwell point weekly. Are there other area near Mossvale that he should consider

Cheers

Kevin

 

Would you be using Cash or equity to supply the deposit?

I'm not too familiar with the areas though, i think @BuyersAgent or @Propertunity might though.

 

Hi @warek - I personally think Moss Vale has great long term prospects, it is always hard to predict a 5 year run but it would be as compelling an argument as any others. It has limited existing housing supply, a council that seems conservative (ie not releasing loads of land) lots of ambience drawing tourists and relocaters out of Sydney in droves. Particularly the Land Rover driving retiring boomers who like $80 bottles of wine and fancy food. Assuming retirees keep showing up at the current rates you might see some good growth over five yrs.

An older renovator might get in under 600k and give him something to do between train shifts and if bought well protect your investment too

I would hate to drive down the pass with a big boat tho! Is he on the trains to Port Kembla and can he hop on that line (or others) anywhere he likes? That really impacts what markets I could suggest as alternatives.

 

You think he needs a push, or he thinks he needs a push?

He would still be responsible for repayments. If he feels the repayments negatively affect his lifestyle this may end up an argument esp if it doesnt go up for a while.

 

The main freight hub is Mossvale. He can move to other branches, but all work is casual through a labour hire company, contracted to teh freight company. Moss Vale has the most work.

New employees are on lesser pay and the general company policy is to not overwork employees as this puts them onto overtime penalty rates. Therefore his chance of pay rises in the future are minimal in his current role.

If he finds repayments a drain on his other spending, and sells the house we may lose our share unless we buy it as tenants in common. Are there any other options to protect our investment?

Hopefully his financial position improves in the future, and if we are joint owners as tenants in common he may buy us out. Would he be liable for tens of thousands of NSW stamp duty?

It seems Moss Vale has potential as a long term investment

Thanks for the suggestions

Cheers
Kevin

 

If he is labour hire, then I don't see it being a permanent position at the one company for that area, he could get moved with a project?

If you buy the property with equity in your house then if the house is sold your equity will need to be repaid from the proceeds.

 

His job is not secure, along with many others. If we put funds into a house it will be from savings and have no effect on our home or debt levels. If it goes badly it will reduce his future inheritance, but better to get some benefit now than in another 20 years when we may not be around to spend it.

 

Warek whats your own experience with property investing? Why not just do it yourself? Not every person, young or old, is financially switched on. Unless it booms quickly, its not something you want to push anyone into. Give him books and talk to him about it, but pushing him into buying is dangerous when he is not committed to it.

If he isnt even thinking investing, he wont be thinking far enough ahead to worry about his inheritence.

 

Based on your comments - it seems Moss Vale makes the most sense.
You should seek advice from a property lawyer regarding the options to protect your investment. A property savvy accountant would also give good advice re stamp duty in case of family buyout. (@Terry_w has some wonderfully detailed posts here in the forum on this topic if you search them)
Regarding whether your son and you are wise to go into a property deal together - only you can answer that.

 

You would need to see a lawyer about the stamp duty - accountants cannot advise on state taxes.

If you were to become owner with him as tenants in common with a low % the duty would be minimised, but there would be CGT to consider too. both duty and CGT could be avoided in full potentially though.

 

Moss vale is a beautiful part of the world and so its the region - one of our favourite getaway places.

That said there seems to to be a large amount of stock on the market for sale relative to the size of the area. The rental market looks a bit high too but certainly not as much as the sale market. Not sure if this is normal or seasonal but its a bit too high for my liking.