In NSW’s Bathurst/Orange, $500,000 gets you a four-bedroom home: HTW
If you are looking to park your lazy half-a-million dollars in NSW’s Bathurst/Orange, the $500,000 still makes a large percentage of the residential market, according to property valuation firm Herron Todd White’s July residential market report.
The majority of new four-bedroom homes continue to be sold for less than this amount, although the proportion between $450,000 and $500,000 is increasing. This may be a reflection of the limited growth in incomes in the region, as they are reported to be across the Australian economy. This affects borrowing capacity which in turn determines what money is available in the market. This has more weight in the local market given that the region is not as sought after by wealthy migrants or overseas investors, except in the field of agriculture. The upside of this is a relatively stable market that has seen some increases over the past 12 months.
“Investor activity has increased with investors chasing yields not available in Sydney, particularly as they may be able to purchase two properties for $500,000 instead of one,” the HTW report says.
If house prices are looked at in terms of years of average income, then $500,000 is a significant point above which mortgage stress is likely to be felt keenly by people on average incomes. If we consider that the median sale price for the region is between $300,000 and $400,000 then we can say that the region does not have an affordability problem. Having said that, it is unlikely to be enough for a few acres on the fringe of town. Such properties continue to enjoy strong popularity and are considered to be aspirational properties for a large percentage of the market. Such properties also benefit disproportionately from Sydney tree changers.
Land values for well located central properties have increased more than the average if recent sales of such properties for redevelopment are used as a guide.
“Our advice would be to find the area that has the most builders’ signs, indicating a renovation or redevelopment, and see what is available for under $500,000 in that area. Investigating Council approvals may be a more targeted approach,” conclude HTW.
Property Observer found a recent sale in the sub-$500,000 range at 49 Barker Circuit, Bathurst, NSW 2795. This four-bedroom, two bathroom house sold for $431,000.
