It is hard to believe that, not all that long ago, Byron Bay was considereda sleepy coastal village. While the area has always been popular with holidaymakers, over the last decade, it has become the hottest of touristhotspots. And, in many ways, its relatively newfound celebrity has only added to its appeal.
Situated in the far north-eastern corner of NSW, the Byron Bay area includes Australia’s most easterly point, Cape Byron. While it sits almost 800km from Sydney, it is only 165km from Brisbane and less than 100km from the heart of the Gold Coast. This, combined with itseasy access to two airports (Ballina and Gold Coast), means that the area is extremely accessible.
Despite this, Byron Bay is widely revered for feeling like it is a world away from the hustle and bustle. Locals and tourists alike appreciate the area’s astounding natural beauty and obvious connection to nature. Most also enjoy all the urban conveniences that come with being a high-profile luxury holiday destination.
That being said, many of the longer-term residents bemoan the loss of their idyllic coastal hideaway. They see the outside interest in the area as a threat to its quiet simplicity and, most importantly, affordability. And, givenhow much both rental and sale prices have increased over the last decade, they may have a point.
So, the big question is – is it worth investing in the Byron Bay property market? Given the interest in the area, is it still possible to find affordable properties with great investment potential? And, if you can, how do you best manage them to maximise your returns?
Luke and Julian each have over 20 years of property investment experience.
As experienced buyers agents, we often find that areas like Byron Bay are quite tricky to negotiate. While we completely understand why so many people are so interested in the area, that interest can be a double-edged sword.
This is particularly true in Byron Bay itself, where the property market has become notoriously competitive. Now considered a “Zoom town”, for almost a decade it has been coaxing cashed up buyers out of the major capitals. And, with working remotely becoming more common, busy professionals are increasingly drawn to the stunning coastal setting.
The Byron Bay rental market is also extremely tight, with many long-term residents complaining about being priced out of the area. This is partly due to the predominance of short-term holiday rentals in the town, which are particularly lucrative over Summer.
While this demand for rentals would usually be a great sign for investors, yields in the area are usually modest. This is mostly because the cost of buying into the area is so high – and continuing to get higher. Even taking the potential capital growth into account, the initial purchase price means the numbers usually don’t stack up.
As such, if you want to invest in the Byron Bay property market, we recommend looking at the surrounding area. While the entire Richmond Valley has seen significant price growth over the past decade, some towns are still relatively affordable. Many of these locations also enjoy strong rental demand, with tenants increasingly looking for better value close to Byron Bay.
When investing in a highly competitive market, like Byron Bay, an experienced buyers advocate, like Search Party Property, is essential. In addition to finding you the perfect place, we will help you make sure the numbers stack up. After all, property investment should always be about the numbers.
As part of this, our experienced team will carefully analyse the local market to identify any relevant trends. We will look at long-term population and demographics changes towork out where the greatest growth potential is. We will also go over any development planned for the area and consider the potential impact on the property market.
Obviously, we will share all of this insight with you and help you use it to choose where to invest. We will also come to you with properties we believe have great investment potential and suit your investment strategy. Then, once you have selected a property, we will get to work on getting the deal done.
Importantly, when you work with Search Party Property, the journey does not stop there. We know that true financial freedom cannot come from one property, so focus on helping investors build their portfolio. And, using our Property Portfolio Accelerator Model, we can help you acquireseveral properties in a few short years.
If you are serious about building wealth through property investment, give Search Party Property a call.