What should I buy in Byron Bay?

We are often asked by investors but also by home buyers where and what should I buy to make the highest capital gain?

Firstly, where should I buy?

The hotspots over the last 12 months are certainly Sunrise Beach, Belongil Beach, and more recently some sections of the old part of town. Sunrise Beach, with the SAE and its new, modern shopping centre and the imminent approval of the old Club Med site, are all factors pushing up values in this popular area.

Belongil Beach has had the second highest residential sale price (over $8 million) and the very successful selling campaign of the ground-breaking EAST project (26 luxury apartments). It remains for many the ultimate location with its north facing beach and small intimate community. Look out here for some other big sales over the next few years.


Finally, the older section of town around Carlyle, Kingsley Street, Cowper and Marvel Streets represent excellent value today. After huge 1012sqm blocks of land with the sound of the sea to put you to sleep at night, this area is only a short walk through the sandhills estate on to Clarkes Beach – or onto the Lighthouse. A very good place to invest.


The final area that is worth considering is the wonderful rural environs around the town. Coopers Shoot with its fabulous views; Possum Creek with its verdant vegetation and strong community; Coorabell, with its north aspect and ocean breezes, and Ewingsdale perched on the edge of town on deep red soil but only minutes from our beaches. All of the rural areas represent excellent value when compared to town prices and with the death of new rural land you can expect strong capital gain over the next few years.



What should I buy?

1. A property that is over 800sqm in size. Why? Because you will be able in the future to build a second dwelling on this block and because the Byron Shire Council is in effect trying to prevent any future lanreleaseses it means your own backyard will become even more valuable. Particularly in the town centre.

2. Buy houses that are BELOW replacement cost. We have 2 homes in Scott Street for sale at present and I believe both are below replacement cost. The value of the land under many old homes is much higher than people realise so do your sums: Land + House = ? You only need to hold these homes for a few years to achieve good capital appreciation.

3. Buy on or near the water. If you can hear it, see it, or jump into it quickly, you are in the right place. Because the total number of properties that fit these criteria probably don’t number more than 1000, the supply limitation means strong long term capital gain.

Chris Hanley
Principal
Byron Bay First National Real Estate