NSW Central Coast granny flats doubling investor income: HTW

NSW Central Coast granny flats doubling investor income: HTW
NSW Central Coast granny flats doubling investor income: HTW

The NSW Central Coast's strongest performing locations - both now and for the past several years - has been the peninsula suburbs at the southern end of the region, according to Herron Todd White’s latest report.

The property valuation firm says that included Umina Beach, Woy Woy and Ettalong with records being set and broken in very short periods of time.

"Almost daily, we talk to people and hear the surprise at the prices being paid," HTW's latest report noted.

"These areas have been around forever.

"Originally a holiday or retirement destination, this has been evolving over the years to become popular with first home buyers or those looking at a lower cost base.

"Nowadays, these areas have become a magnet for renovators, value adders with those looking to exit the Sydney market finding these areas particularly attractive due to the comparative level of affordability," the report stated.

It’s this exodus from the Sydney market that is seen to be driving the values in these locations.

"Regularly, we are seeing prices rocketing past the $700,000 mark when the same property could have been purchased for much less just a few short years ago.

A three bedroom villa at 3/30 Flounder Road, Ettalong Beach (above) has been listed with a price guide of between $675,000 to $725,000.

Similarly a four bedroom house at 35 Pratley Street, Woy Woy (below) has been listed with a price guide of between $670,000 to $735,000.

NSW Central Coast granny flats doubling investor income: HTW

"Knowing this, established locals are reluctant to pay the asking prices, but for every hesitant local, there is a new resident eager to step in," the report noted.

$700,000 nowadays will secure a 2-to 3-bedroom fibro dwelling close to the shops and beach or a mid 1970s style, 3-bedroom brick and tile a little further from the shops," the report advised.

Renovations are aplenty and the builders are happy.

"The peninsula has always had a love affair with backyard granny flats, mostly in the form of a converted garage and some even being council approved.

But recently, they have been popping up everywhere and granny flat builders are flat out.

These are particularly popular with investors who in many cases are effectively doubling the income received from a property.

"Whether the proliferation of granny flats is good for the area remains to be seen, but we have been saying for some time now that the increasing values have passed the point of being sustained on an ongoing basis and we still believe this to be the case," the report stated.

"The market moves on without waiting and whilst we can worry about the future of the peninsula’s values, a flow on effect is being seen in other areas further along the coastal strip and at this stage, we haven’t heard any complaints of things getting out of hand.

“In this regard, we see the older areas on the fringe of the Gosford CBD as being the big winners.

"This includes areas such as Narara, Niagara Park and Wyoming,” the report stated.

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