NSW South Coast - Potential ?

[parra1]

NSW SOUTH COAST - ULLADULLA - BATEMANS BAY - NAROOMA - BERMAGUI

I have started looking a little at the NSW South Coast as a possible IP. The prices are very good compared to further up at say Kiama, Gerroa, gerringong and rents hold up pretty well. In particular batemans bay has always been the holiday location for canberra residents and prices appear to be good value.

Has anyone had any experience with these areas ? Good/bad/Ugly ? I can pick up a 3 bedroom house on 650sm for around $300K a few streets from the beach which I doubt I could get most coastal locations.

Any advice is appreciated as always.


parraboy

 

[BV]

Property at $300K is not exactly cheap and with interest rates going up you'll need to make sure it's rentable or you'll be out of pocket by a fair amount.
Where did you look?

 

[mystery]

NSW SOUTH COAST - ULLADULLA - BATEMANS BAY - NAROOMA - BERMAGUI

I have started looking a little at the NSW South Coast as a possible IP. The prices are very good compared to further up at say Kiama, Gerroa, gerringong and rents hold up pretty well. In particular batemans bay has always been the holiday location for canberra residents and prices appear to be good value.

Has anyone had any experience with these areas ? Good/bad/Ugly ? I can pick up a 3 bedroom house on 650sm for around $300K a few streets from the beach which I doubt I could get most coastal locations.

Any advice is appreciated as always.
parraboy

I live just south of Narooma (10km). Narooma has pop of approx 8500, but is mostly a retirement community. Very little employment except in hospitality which is seasonal. Since 2003 the property market has been very flat with virtually no capital growth.

Bermagui on has a population of around 2,000 people. it is quite isolated and is approx 16km from the Princess Hwy turnoff. It has very little employment as is mainly a holiday village place. It only has one primary school in the town with approx 160-170 children, .. for High School they have to travel to Narooma which is a 30min-40min drive.

Property once again has not really moved for a few years, ... poor rent returns and flat capital growth. Bermagui's property prices are very expensive which is hard to understand.

Bateman's Bay has pop of approx 15,000, but once again it is mainly school holiday and weekend business. It is only 2 hours from Canberra, but once again not much available in work prospects.

All areas are beautiful parts of the world, but if you are looking at property for investment then you would get very poor rental yield and extremely slow capital growth. You would be better advised to park your investment dollars in a more populated area further north or look interstate.

Until these locations can attract employment and infrastructure to the area they will continue to struggle as property investment locations IMO.

I would imagine Kiama, Nowra, Wollongong would offer better opportunities, but even these areas have struggled for a few years and only the past 6-8 months have shown any sign of life.

We have many IP's, but only one other at Narooma, ... the rest are spread out across the country as they give us far greater ROI.

Hope this helps

Martin

 

[Mooze]

We're currently living in Narooma.
Plus sides to IP here
- very few rentals on the market
- it's a retirement area - possibly more baby boomers retiring down here soon

Down sides
- it's a retirement area - they tend to buy not rent
- those that do rent tend to be low socioeconomic
- several new developments going in that still haven't been fully purchased even though they've been on the market over a year (Dalmeny Rd into North Narooma/Kianga is a good example)

Batemans Bay - better size population (I think greater BB is around 30,000), again many holiday homes so subject to what's happening in that market. Canberra has always gone there as it's only 2hours away - however with the new road going into Nowra there may be more going to Jervis Bay/Lake Conjola area.