NSW Regional NSW

Going well, still away with work most of the time unfortunately, let me know when you are out next.

 

May be up on Friday it looks like.....

 

Fine. Electricity out until 10 or 11 the next morning on the east side. A few branches down. Not much else that I could see.
The worst only lasted 10 mins max but gave us a pelting - hail. Went out the front to close windows. By the time I got back to the back I had hail all through the back room and not a cat or dog in sight.

 

Some nice properties out around the lakes and beaches.

Pacific Palms is a bit of a hot spot attracting international interest.
Arnold Schwarzenegger eyes off Boomerang Beach house

 

Shame, we are heading to newcastle on friday night.

 

@Ardi perhps @BuyersAgent (Matt) can share some insight of the overall market in Wollongong area ?

 

@Tekoz can certainly talk Wollongong Real Estate but its probably not so regional as the other stuff. It could have its own thread most days of the week. Stock is low, so buying is tricky. Either you need to know about something pre internet or you need to jump on the good stuff in week 1 otherwise most properties are selling quickly. There are a few silly Sydney buyers making offers without checking their finance so occasionally properties are coming back on the market after an early offer. The usual spring rush of listings has been tiny this yr so whilst we are well off the bottom and property is not cheap anymore I would have to say growth continuing short term there is just no supply and way too much demand for it to flatline yet.

 

Greatly appreciated Matt.

Do you have any Intel in Nowra, Batemans Bay, Jervious Bay or further south at all?

 

Cool, thanks for the sharing and the explanation mate.

 

Hi Ardi I am a sales agent in Bermagui which is on the Far South Coast. We have seen a strong increase in demand for houses in the sub $500,000 range with an increase of circa 10% in that time. Market is further tightening with demand remaining strong so I can see there is still a lot of potential here.

 

Area around Sanctuary Point is still going well.
There are other places further South I would still buy in now.

 

Devils advocate

Im away this weekend at metung on the gippsland lakes. Its an awesome place that i have been coming to for the last 20 years.
15 years ago there was a boom here and you couldnt buy a house for under 500k
Some friends listed a house in the main street with goid lake views for 550k
Anyway they declined a couple of offers and fast forward 15 years the house is still for sale for a lower price.
The lesson i guess is that this place is too far from melbourne for a holiday house and there are no jobs to support high house prices.

So a house in bermagui is almost 500k. Average household income is $690 a week.
Lovely spot but the numbers already dont stack up. Whats going to cause it to grow? How can it?
I do agree with the sea change concept but i think most city retirees wont move more than a couple of hours from their original home and if they do there off to queensland!

 

Sounds like some kind of cycle.

If people want it and they can afford it they buy I suppose. Investors look at the numbers, if it works, go for it.
Plenty of places closer to Sydney and Canberra too.

 

I do @Ardi - but obviously I need to be little careful about how much info to put in the public debate as the markets are so small there are technically enough people on the forum to effect some of them. Why don't you put forward your research, ideas or theories and we can all comment?

 

Good lord, that sounds a bit sensible.
Where are the real spruikers?

 

In Bathurst for the night, such a lovely looking town with great architecture, parks etc.

Houses have had growth between 8-18% (CBD/West Bathurst) in the last 2 years.

Vacancy rate is 3.7% though!

 

Interesting, where is Azazel? he will used to come in here and update every post literally..

 

Im releasing Dual Occ's in Orange and Bathurst shortly... I think regional dual occ is a really smart play. They run CF+ pre tax, so there's no holding costs coming out of your pocket, and with new build depreciation, you end up with a very tidy 9-10K CF+ . You can use that 9-10K of surplus cash flow to reduce debt, and just sit on these things for 15-20 years and let the rents grow and grow over time. Potent in an SMSF too, where you can pay the property off pretty quickly and be left with a very juicy income stream.

 

If you were to sell to your client, what are the numbers?
Do we expect further capital growth in Orange/Bathurst? It appears they increased 30-50% in the last 10 years..

 

I would discuss numbers with them offline. RE Growth - the purpose of investing in these properties is to generate income which can be used to reduce debt. This is a debt reduction strategy, with the end goal being to improve borrowing capacity and expand the portfolio size, and expand the passive income. Could do this product in Sydney for long term growth but it would cost $1 Million or more, produce a much weaker yield, eat up a huge amount of borrowing capacity and not really assist with debt reduction.