Unfinished home in NSW's Bullaburra fetches $191,000, reflects 10.35% yield

An unfinished four-bedroom, two-storey home in New South Wales’ Bullaburra was the most affordable auction sale last weekend.

Located at 373 Great Western Highway, the house sold for $191,000 through First National Real Estate – Mid Mountains.

Prior to this sale, the house last sold in 2007 for $240,000, according to RP Data records.

Listing agent Gary Brown told Property Observer the auction was “very good”, with 10 registered bidders present.

The successful bidder was an investor.

“He’s a builder – he’s not going to live in it, probably going to keep it as a rental, or flip it,” Brown said.

He added that the vendor was a builder who had lost motivation and enthusiasm in finishing the project.

While the property is located on the highway, it is 400 metres from the station with a bus service out the front. Its back also faces a park, which is ideal for families.

Brown also noted that Bullaburra’s property market is easily affected by the Sydney property market, as most buyers are from Sydney.

“When Sydney goes good, we go good; when Sydney goes bad, we go bad,” he said.

Hence, the property market in Bullaburra is going well at the moment.

“In the last six months, we’ve had a $35,000 increase per property. But mind you, we’ve had nine years of very slow growth,” he said.

He added that investor activity is very strong in the area at the moment, while first homebuyers have lost interest in the area.

“We’re seeing a lot of mum and dad investors, builders, and a lot of self-managed super funds,” he said.

According to First National Mid Mountain’s estimated asking rent of $380 per week once the property is done up, the price reflects a 10.35% yield.

According to the latest RP Data report, the median house price in Bullaburra is $327,500, down 3.1% on last year. The average discount required to sell a house is 7.9%, while private treaty sales average 135 days on market.

The median asking rent for a house is $363 per week, while gross rental yield currently stands at 5.8%.