What a lazy $700,000 can buy in Coffs Harbour: HTW residential
Similar to previous months, supply is still down in many sectors of the Coffs Harbour market, 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.
"As the relaxation of COVID-19 restrictions sees us all getting back to some normality, the property market rolls on as if it was unaware of recent social struggles," the valuation firm said.
Selling agents are reporting good demand and increasing interest from the out of town city buyers looking to finally escape the chaos of urban life.
Arabella Heights
Property values generally have remained steady to strong with only the prestige market of $1 million plus experiencing some weakening in activity, although it is not uncommon for this sector to seasonally fluctuate.
"We can look forward to the opening of state borders in time for school holidays together with the highly anticipated reinstatement of domestic flights which will help boost the Coffs Coast accessibility for domestic holiday seekers," the valuation firm said.
"Now that you have come for a holiday and experienced the wonders of what this region has to offer, your thoughts turn to what you can buy for that lazy $700,000.
"Like most regional locations, we have a diversity of product and it is very difficult to stereotype what you will get in any particular price range; it will depend on what you are looking for. Whether that be a large family home in the suburbs, a beachside cottage or rural retreat, the options are endless," the valuation firm said.
Palm View Estates
The report starts with a suburban home.
As the median house price in Coffs Harbour sits at around the $490,000 mark, it is easy to see that $700,000 will get you an above average property, typically a large family home, either modern or fully renovated, with four or five bedrooms, double car accommodation and pool set on a standard 600 to 1000 square metre site, the report noted.
Suburban areas such as Boambee East, Toormina, Bonville (East) and West Coffs Harbour are typical locations for this type of product and well suited to the family although not so much the investor as returns diminish with the higher values. These areas, like most of the region, have experienced gradual growth over recent years.
A large family home in Toormina has recently been sold for $549,000.
The four bedroom, two bathroom house is located at 5 Bryant Close (pictured below).
It comes with lounge area, large sunroom, timber kitchen, entertaining deck and in-ground pool with tropic garden surrounds.
"Moving closer to the beach, you get less home as the trade-off for higher land value," the valuation firm said.
The more popular areas such as Sawtell and The Jetty precinct in Coffs Harbour have entry level prices of $700,000 which would purchase a more modest home or a cottage of 20 to 60 years of age which would require renovation, extension or demolition.
A current listing is a three bedroom period style home in Sawtell priced at $649,000.
The seaside home at 1/17 Fifteenth Avenue (pictured below) offers combined kitchen/dining area, living zones, sunroom, three bedrooms and entertainment deck.
It is located within walking distance to Murrays beach, cafes and Sawtell Main Street.
"You will find more modern unit products in these areas, although the more high quality larger product potentially with water views will set you back more than $700,000. These are very solid locations for investors as they are popular proven localities with underlying development potential, in many cases due to higher density zones," the valuation firm said.
The report notes the popular northern beachside suburbs also see fewer homes for $700,000, although there are some more modern estates where you can get a new four-bedroom, two-bathroom, double garage home on a standard block.
The trade-off for these properties is that they are the more recently developed estates such as Sapphire Beach and Emerald Beach which are located along the Pacific Motorway.
Typically the home closer to the beach with all the trimmings will set you back significantly more than $700,000. These areas have experienced good growth and with land to build the dream now becoming scarce, we are seeing premiums being achieved for modern developed products.
"If you are looking for the green change and land size is important, $700,000 will get you into the market albeit at the lower end of the scale.
"Typically you will get one to five acre properties with aged homes of generally modest size and quality, although well located to towns and beaches in suburbs such as Korora, Bonville and Boambee which are very popular to have the best of both worlds," the valuation firm said.
These properties are typically lifestyle purchases and not geared for investors, although Korora does offer the potential to subdivide five acre plus properties which could be worth land banking for future capital gain.
"As an investor looking at the Coffs Harbour market, we’d be looking towards the multi accommodation properties where increased returns and capital gains will come from renovations and possible subdivision," the valuation firm said.
Coffs Harbour has a strong population growth with affordable lifestyle benefits and the anticipated start (2021/22) of the proposed Pacific Motorway bypass will see a considerable uplift in the economy with pressure on the rental market during this construction stage.
This is where the multi accommodation properties will come into their own, especially if they are furnished and aimed at the transient working population, the report noted.
As an example, a triplex in Toormina has been marketed at $625,000, comprising a single level 1980’s building with three two-bedroom, one- bathroom units each with a garage and returning approximately $240 per week each or $37,440 annually, the report noted.
"The potential here is to undertake some modest renovation work, say $5000 to $10,000 per unit to increase the rental returns by $40 to $50 per week each with a long term view of strata titling and selling separately.
"Not surprisingly, this property is under offer at full asking price," the valuation firm said.