Byron Bay Real Estate
As we wound down out of 2015, there was interest on whether the strong buyer demand would be sustained into the new year. It is a bit early to be definitive, but all indications are that this is the case. 2016 looks like being a strong year again for property in Byron Shire – and even into the wider Northern Rivers region.
As we know, Byron CBD has had a massive year and was second only to Sydney’s stellar capital gain figures of 20% or more. Later in the year, we saw this growth and demand spread into the surrounding towns of Brunswick Heads, Mullumbimby and Bangalow. Top end rural ($2M and higher) is finally back in vogue and many of the over-capitalised trophy homes dotted through the hinterland like lost jewels in the rainforest have now found buyers.
Property pundits like Terry Ryder have long been touting “the Regions” as the next hot spot. Lismore, Murwillumbah as well as the coastal towns from Pottsville to Kingscliff, will be part of that prediction. Rental yields in relation to purchase price will be better than 5%. Lets not forget our own Ocean Shores. This has been flat for a long time but I believe 2016 will be the year it comes alive.
Does the Property Cycle Affect Byron Bay Real Estate?
A lot of people are more concerned with the property cycle than they should be. Yes, it would be ideal to buy property at the bottom of the cycle and sell at the top. That is the best of both worlds. But in my experience, I have seen more people miss out on a good option trying to guess the market cycle than those who have successfully picked the trend.
Basically, if you are in the market for the long-term with a primary residence, the timing of buying and selling becomes less important. If you own a property longer than 8-10 years you will get a few ups and downs in that period but generally the trend will be up. Speculators, renovators and people want to quickly flick need to get the timing right. The present market is boisterous and putting some people off. I have clients who drop out as refusing to pay these prices and view it as unsustainable. I cannot argue against that but I have also seen over the years people who sit back and wait for a downturn end up waiting, and waiting.
Read my blog article on the similar topic on whether the share market affects the property market. Some people are tentative about buying when there is general financial instability. Some find shelter in the stability of property at that time.
Interest Rates on hold
The RBA have left interest rates on hold for yet another month.
Finance, Interest Rates, Westpac Banking, etc.
Local Byron Bay Westpac branch are very proactive in getting more deals done. I have met with the new loans manager a couple of times and can confirm they are keen and capable. I had a health check up on all my accounts – merged some, scrapped some and got a rate discount on what I kept.
Highly recommend you give it a try. At the moment they have a cash back rebate offer till April, which will put $1250 back into your account on any refinance. So good I signed on a registered referrer. Call me for more info or if you want to go direct to the branch contact Caroline Maggs 0417 765628 or firstname.lastname@example.org and tell Caroline I sent you.
I promise to bring the popular Hot Property section fully back next month.
The general overview at the moment is that what was popular last year has gone balistic this year. The demand for small acreages 20 minutes from Byron is extreme. I do not see how this is going to be maintained. The existing Agriculture Protect zoning makes it impossible for anyone to sub divide large rural acreage. This is a good thing to protect the rural nature of the shire. But the demand side is that people will be forced to pay unsustainable prices. I do not see any new rural subdivisions on the horizon and the only release will be possible Community Title and Multiple Occupancy sites.
The existing small acreage sites in Ewingsdale have therefore seen huge demand. Only a few left in the Fig Tree subdivision and the new release in McGettigans Lane saw 10 sales in the first two weeks. I do know of one site in Ewingsdale which is still available and what would seem reasonable value at $690,000.
South Golden Beach:
There are three listings at the moment in South Golden Beach. This area I belive is still undervalued and will become more and more popular and a great plce to live and raise a family.
As is usual in strong market demand in the cities, the same rules apply here. I am predicting strong interest and the next outlying rim. Places like Billinudgel, Moobal, Goonengerry, Rosebank, Eltham Tintenbar. These are places with a good feeling country town but still within striking distance of Byron and other amenities.