What a lazy $700,000 can buy in NSW Central Coast Region: HTW residential
The focus of attention in the Central Coast Region market now seems to be on recovery and future planning, according to the July Herron Todd White (HTW) residential report.
The valuation firm took a look at how a budget of $700,000 could be invested in property markets across the nation.
NSW Central Coast Region Coronavirus Update
The report notes in line with many regions, there have been little reports of new cases of COVID-19 for some time.
For many, life seems to be returning to normal. The tourist and visitor centres of Terrigal, The Entrance and Ettalong Beach have been busy for the past several weekends as crowds return.
"Recovery will be as big a challenge as the restrictions and lockdowns themselves. Looking around, a number of businesses have suffered terribly and some have closed. But confidence is returning.
"Tempering this new confidence, our health professionals are reminding us that we may not have seen the end of this with a second wave likely," the valuation firm said.
What will a lazy $700,000 buy in the Central Coast region of New South Wales
A quick snapshot of some suburbs where investing $700k seems to be a good idea, the report noted.
Wadalba – a newish and still developing suburb located towards the northern end of the region with plenty of schools, shops and easy access to the M1 Motorway.
A typical new project style dwelling, single level with four bedrooms, two bathrooms and double garage, recently sold for $690,000.
"With slightly older two-storey options available for similar prices, we consider these to represent good value for first home buyers and growing families finding the area to their liking," the valuation firm said.
Values have remained static overall over the year, so buying for quick financial gain isn’t great and returns are estimated at around the 4.5 to five per cent mark which is acceptable. Comparable suburbs to Wadalba include Hamlyn Terrace and Woongarrah, the report noted.
A four bedroom, two bathroom home in Wadalba has recently been sold for $591,500.
The single level home at 7 Voyager Street (pictured below) comes with expansive kitchen, dining area, lounge room, four bedrooms and fully fenced yard.
It is located close to schools, supermarkets and parks.
The Entrance – one of the region’s older suburbs which sits between the ocean and lake. It is the day tripper and visitor centre at the northern end of our region, the report noted.
Although there is a large permanent and long term occupant population (renters account for approximately 60 per cent of the area’s occupants), the area is very popular with the weekender market.
Units prevail in the town centre due to the ocean and lake views, shops and beach.
"We note that $700,000 can buy a two- bedroom unit with views within the town centre. But $700,000 is heading towards the higher end of unit values at The Entrance and we feel the more attractive options would be in the $350,000 to $400,000 price range for older units with lesser views," the valuation firm said.
This price range has been more consistent in terms of price stability and returns which seem to be around the 4.5 per cent mark on a permanent occupancy basis.
Bateau Bay – another of the region’s more established suburbs. The Entrance runs through the suburb thus creating two distinct markets.
The eastern (ocean) side is generally the more expensive option. If $700,000 is the marker, then good value on the no less popular western side of The Entrance Road is available.
Generally older style but well established and accessorised property is the norm.
An 80’s style, large, four- bedroom, single level dwelling with two bathrooms and double garage has just sold for $710,000 and a renovated 80’s style four-bedroom, two-bathroom dwelling with inground pool and off street parking recently sold for $685,000. These represent good value for those aspiring to live in Bateau Bay, the report noted.
Terrigal – some would suggest that only good things happen at Terrigal and if price point is the gauge, there may be some foundation to this.
$700,000 will likely secure an old style, rundown dwelling or perhaps a two- or three-bedroom unit or townhouse away from the town centre.
"You might however get a vacant block of land with a little change left over – but you will need to be quick," the valuation firm said.
Next door Wamberal shares these same qualities, with Erina to the west being not far behind, the report noted.
A current listing is a one bedroom apartment in Terrigal priced at $699,000.
The contemporary apartment at 3/10 Pine Tree Lane (pictured below) comprises large bedroom, study, open plan lounge and dining area, and garage.
It is set in a boutique complex, only metres walk to cafes, restaurants and Terrigal Beach.
Point Clare – sitting on the western shores of Brisbane Waters, this is an older and established location with just a short drive to meet up with the M1 Motorway.
"Surprisingly, Point Clare has never been an area at the top of mind. We don’t know why, because there are a number of properties that can be purchased for less than $700,000," the valuation firm said.
An 80’s style, slightly compact, four-bedder with single garage, landscaping and inground pool recently sold for $680,000.
While the median value across the region has fallen just a little over the past year, Point Clare has actually increased – just a little.
The area is predominantly owner-occupied with returns estimated to be around the 4.5 per cent mark.
Umina Beach – located towards the southern end of the region, Umina Beach, Woy Woy and Ettalong Beach enjoyed better than average value increases, but since September 2018, the median value has steadily declined and is approximately ten per cent lower.
Rentals account for around 30 per cent of properties in Umina Beach with the remainder being owner-occupied. Due to the high number of second dwellings in Umina Beach, we tend to think there is a hybrid factor going on here with owners remaining in their dwellings while renting out the second dwelling.
In value terms, there are still a lot of properties being sold under or around the $700,000 mark.
A renovated three-bedroom, one-bathroom dwelling with plenty of undercover parking recently sold for $700,000 whilst a similar dwelling, but minus the parking sold for $670,000.
Older, more basic dwellings with the potential to add a second dwelling are selling for similar prices, the report noted.
The focus of attention now seems to be on recovery and future planning.
