hello, I am new to this forum and also about to buy an investment property for the first time.....so I am abit nervous. I am considering the relative merits of Iluka (small sea side village south of ballina 1 hour) and Lismore (university town 30 minutes inland from Ballina). I presume that the value of the property in Iluka will go up quicker, but I am unsure about the rental reliability. Does anyone have any suggestions? Tamsin
iluka nsw
- Thread starter tamsinaf
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I don't know either area.
Some points to look at
. Yields. Which one will give the highest percentage returns?
. Growth. Which one has the better prospect of growing?
. Vacancy. Which one will be rented more consistently?
A university town may have a better rental prospect for a longer period- but summer may see vacancies.
A seaside village may have some high rental returns and perhaps a higher overall return- but perhaps less reliable in the long term.
You need to do your own "due diligence"- ie, research. Find out about rental rates, returns, vacancies. Pose as a tenant, and ask questions.
It's a big investment. So it's worth while spending the time investigating. Butr don't let it stop your moving ahead all the same!
Some points to look at
. Yields. Which one will give the highest percentage returns?
. Growth. Which one has the better prospect of growing?
. Vacancy. Which one will be rented more consistently?
A university town may have a better rental prospect for a longer period- but summer may see vacancies.
A seaside village may have some high rental returns and perhaps a higher overall return- but perhaps less reliable in the long term.
You need to do your own "due diligence"- ie, research. Find out about rental rates, returns, vacancies. Pose as a tenant, and ask questions.
It's a big investment. So it's worth while spending the time investigating. Butr don't let it stop your moving ahead all the same!
Great Spot ! but maybe too late with the prices.
There was an article in press late last year abot local agent with a list of 50-100 Sydney people waiting for property to be listed.
As you know its across the Clarence River from Yamba and so I guess a lot of investors have chased Iluka because of this.
Yamba & Angourie would run a close second to Byron for the most expensive coastal (country) real estate.
I used to surf Angourie Point in early 70's, blocks of land were between $3k & $5k. A new Holden was about $4K.
Now any building block would be 1/2 Million Plus !!
Oh, for missed opportunities !!!!
Regards, Ron Redshaw
There was an article in press late last year abot local agent with a list of 50-100 Sydney people waiting for property to be listed.
As you know its across the Clarence River from Yamba and so I guess a lot of investors have chased Iluka because of this.
Yamba & Angourie would run a close second to Byron for the most expensive coastal (country) real estate.
I used to surf Angourie Point in early 70's, blocks of land were between $3k & $5k. A new Holden was about $4K.
Now any building block would be 1/2 Million Plus !!
Oh, for missed opportunities !!!!
Regards, Ron Redshaw
Iluka has had huge increases in the last 2 years. My G'parents purchased a block of land for $64k at the end of 2000, which had been sitting on the market for 3 years. November 2002, the local council upped the unimproved land value to $85k from $47k in 2000.
My G'parents were all set to challenge the HUGE increase and called the local RE Agent to get comparisons in the area. The RE Agent laughed and said, shhh, don't tell the council but you will be able to sell that block of land now for $120k+. So the G'parents have gone oh, that is nice, so now they've gone and refinanced the land to get more money out to buy another property.
Cheers
Robert
My G'parents were all set to challenge the HUGE increase and called the local RE Agent to get comparisons in the area. The RE Agent laughed and said, shhh, don't tell the council but you will be able to sell that block of land now for $120k+. So the G'parents have gone oh, that is nice, so now they've gone and refinanced the land to get more money out to buy another property.
Cheers
Robert
I, too, saw the recent story in the Herald about Iluka and surrounds- looks like a pretty place indeed.
My family, for 3 generations now, has been taking annual holidays at Sawtell, a small coastal town just before Coffs Harbour. We pretty much know the town and some of our closest relatives now live there, having fallen in love with the beach lifestyle. I've never really taken much notice of property prices until recently, and so was curious when a for sale sign went up on the house next door to the place we rented for so many years. It is an old 2 bed timber cottage on c480sq m, close to the beach but with no views (could possibly get views if you demolished and built a 2 storey place) on the market for a staggering $650K. What happened to the good old "cheap beach shack"?
Sigh. I guess it's the old story- should have bought years ago!
But then I was young and enjoying myself on the old surf mats too much to worry about real estate!
My family, for 3 generations now, has been taking annual holidays at Sawtell, a small coastal town just before Coffs Harbour. We pretty much know the town and some of our closest relatives now live there, having fallen in love with the beach lifestyle. I've never really taken much notice of property prices until recently, and so was curious when a for sale sign went up on the house next door to the place we rented for so many years. It is an old 2 bed timber cottage on c480sq m, close to the beach but with no views (could possibly get views if you demolished and built a 2 storey place) on the market for a staggering $650K. What happened to the good old "cheap beach shack"?
Sigh. I guess it's the old story- should have bought years ago!
But then I was young and enjoying myself on the old surf mats too much to worry about real estate!
Thought id reserect this old thread rather than starting a new one.
Median is at 350 (although thats probably meaningless for such a small town), but there appears to be a lot on the market and some heavy discounting going on and you could pick up a decent place for under 300k.
Yields look low at about 4% from what I can tell, but the local council is in the process of laying sewer pipe and im thinking it might be a good time to get in for capital gains.
One thing im not sure of is the big nature reserve between the town and the beach which will rule out any beachfront development, meaning Iluka will always remain a river town close to the beach.
Any thoughts?
Median is at 350 (although thats probably meaningless for such a small town), but there appears to be a lot on the market and some heavy discounting going on and you could pick up a decent place for under 300k.
Yields look low at about 4% from what I can tell, but the local council is in the process of laying sewer pipe and im thinking it might be a good time to get in for capital gains.
One thing im not sure of is the big nature reserve between the town and the beach which will rule out any beachfront development, meaning Iluka will always remain a river town close to the beach.
Any thoughts?
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I currently live and work in yamba and trust me mate, the market here is dead, every second house has a for sale sign out the front and nonone's touching anything and its not much better over the river at illuka.
rental market has slouched as well, current apartment im in was vacant for 6 months before i got it and has also been on the market on and off for a year and i havnt even had one person come through to view it.
We have had a great xmas in terms of business trade after a dismal one last year, so maybe things will start to look up, and i hope so cause i know the locals are feeling it and it is a very beautiful spot with very friendly people.
I keep a close eye on this market and surrounds and stilll feel that its to overpriced to invest,( in comparison to other areas) however there are some good deals going around not far from here as i have friends that are buying well in maclean and grafton
There are always cheap deals going in illuka, but who you gonna rent it to? there is no industry there and the fishing port that keeps it going is struggling worse now than it ever has, in fact its so bad that no ones catching anything and so their taking their boats up to qld just to try get anything to pay the bills
as beautiful and as attractive the clarence valley may seem..from a investment perspective i would be waiting and watching a little bit longer before considering this one...
my 2 cents.......
rental market has slouched as well, current apartment im in was vacant for 6 months before i got it and has also been on the market on and off for a year and i havnt even had one person come through to view it.
We have had a great xmas in terms of business trade after a dismal one last year, so maybe things will start to look up, and i hope so cause i know the locals are feeling it and it is a very beautiful spot with very friendly people.
I keep a close eye on this market and surrounds and stilll feel that its to overpriced to invest,( in comparison to other areas) however there are some good deals going around not far from here as i have friends that are buying well in maclean and grafton
There are always cheap deals going in illuka, but who you gonna rent it to? there is no industry there and the fishing port that keeps it going is struggling worse now than it ever has, in fact its so bad that no ones catching anything and so their taking their boats up to qld just to try get anything to pay the bills
as beautiful and as attractive the clarence valley may seem..from a investment perspective i would be waiting and watching a little bit longer before considering this one...
my 2 cents.......
Thanks James, agreed it is dead there now... With two years of negative numbers and the market flooded im thinking there could be a bargain to be had tho...
I also hear that John Cornell (aka strop) who use to own the top pub at Byron, just bought the pub at iluka... Could just be bs tho... Can you confirm this?
I also hear that John Cornell (aka strop) who use to own the top pub at Byron, just bought the pub at iluka... Could just be bs tho... Can you confirm this?
That pub is a classic? Just about falling down around everyone. But what a piece of real estate that dirt is? If the pub was done up it would have to be a good thing I suppose? Or maybe not? Maybe people want Iluka to stay as a tiny little sleepy village with an old buggered little wooden pub?
See ya's.
Haven't been to Iluka for 18 months (was in Yamba which is across the river from Iluka in December and currently at Evans Head) two things concern me about buying in Iluka.
1) Iluka is about 30 minutes off the highway then you need to add the time it would take to get to a major shopping centre and the types of roads you would need to travel to get there.
*The road to the highway from Iluka can flood and the road from Yamba is subject to some tides crossing it with water there is only one road in and one road out in both places to my knowledge.*
2) The closest hospital is Maclean (small) and then Grafton (base hospital).
Any property that has development potential is still expensive. I am looking for a property with cosmetic renovation potential and a little something else reasonably priced
.
Looked around Ballina in December since the highway bypass opened which means less day to day traffic (looking for something our son could buy) I am from the local area and feel Ballina offers more, Lennox Head has many properties for sale with large price tags and Byron (backpacker party town) is expensive and difficult to get around in holiday time.
FWIW..
There have a been a few opportunites offered to us via phone calls from our REA offering land in Lismore and Ballina at a reduced price but I don't want to build anything this year nor do I want to hold as we are travelling for 12 months.
1) Iluka is about 30 minutes off the highway then you need to add the time it would take to get to a major shopping centre and the types of roads you would need to travel to get there.
*The road to the highway from Iluka can flood and the road from Yamba is subject to some tides crossing it with water there is only one road in and one road out in both places to my knowledge.*
2) The closest hospital is Maclean (small) and then Grafton (base hospital).
Any property that has development potential is still expensive. I am looking for a property with cosmetic renovation potential and a little something else reasonably priced
.Looked around Ballina in December since the highway bypass opened which means less day to day traffic (looking for something our son could buy) I am from the local area and feel Ballina offers more, Lennox Head has many properties for sale with large price tags and Byron (backpacker party town) is expensive and difficult to get around in holiday time.
FWIW..
There have a been a few opportunites offered to us via phone calls from our REA offering land in Lismore and Ballina at a reduced price but I don't want to build anything this year nor do I want to hold as we are travelling for 12 months.
