NSW Far North Coast
Sales activity across the lower priced segments of the NSW North Coast property market have increased since late 2012 and throughout the first half of this year. This appears to be related to the lowering interest rates and resultant affordability in lower priced product.
As a result on the lowering interest rates, increased affordability and market shifting, it now looks like a good time for some buyers to make a move into the property market. However, if you want to just dip your toe into the property market rather than plunge right in, there are good opportunities on the NSW North Coast.
We are specifically looking at the affordable end of the market segment, which is generally located within the smaller rural townships of Casino and Kyogle and the larger regional centre of Lismore and its surrounding suburbs.
The most affordable or dirt cheap property types in towns like Casino and Kyogle are generally the older brick and tile 2-bedroom units with carport or garage. There have been several sales of this style of product recently via a mortgagee auction for sale prices below $110,000 (16/41 Hartley St $94,000 and 4/41 Hartley St $105,000). This product still has the ability to attract a rent of $170 per week. However one must consider the body corporate costs.
Another example of ‘good buying’ in the lower priced segment of the market includes a three level block of flats in Goonellabah for $415,000 with a potential gross rent of $800 per week. The flats building comprised of one 3-bedroom unit and 2-bedroom units. This property was also sold mortgagee in possession.
Based on the above examples, the only likely opportunity under current market conditions for cheap buying is essentially realised at mortgagee auction.
Although vendors are adjusting their expectations, it is still not enough to encourage prospective purchasers to get off the fence unless other issues force their hand.
“If you the cash, to make a splash, have a dash down at the auction”.
In terms of obtaining new product and affordable price levels, the current rebates available to certain purchasers of land within the Wollongbar Urban Expansion Area Estates and the Ballina Heights Estate are considered good buying. However the land is not considered to be ‘dirt cheap’.
If you are a first home buyer or a family looking to upsize into a modern new home, now could be the best time to do so. Not only are these land prices considered affordable based on historical pricing, but you may also receive a kickback from the government if you meet the financial requirements. It is now possible to purchase a house and land package under $400,000.
Extract: September month in review Heron, Todd White property valuers