Advice needed Buying Property In Thredbo

Discussion in 'Thredbo' started by Harry James, May 21, 2018.

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Have you purchased property in Thredbo

Poll closed Jun 4, 2018.
  1. Yes, it's worth it

    4 vote(s)
    57.1%
  2. Yes, don't do it.

    3 vote(s)
    42.9%
  1. Harry James

    Harry James Early Days
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    Hey Team,

    I'm sure this has been asked many times, and I've tossed and turned about buying in Thredbo as an investment but wanting to use the place as well for weekends when I need. I've read a few forums and they say that there is no money to be made. It will just cover your costs for the year with an average snowfall, but be prepared to pay if you get a bad season.

    You ask real estate agents and the figures they quote you would be mad not to invest, but as the old saying goes, never as a barber if you need a haircut. So, any advice?
     
  2. Townsend

    Townsend One of Us

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    It is a lifestyle decision. It will be difficult to make a good return if you are intending to stay in it when people most want to rent it i.e. on weekends.
     
  3. gareth_oau

    gareth_oau Pool Room
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    Ask that agent to show you the books for the last few years
     
    #3 gareth_oau, May 21, 2018
    Last edited: May 21, 2018
  4. climberman

    climberman CloudRide1000 Legend
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    I have considered similar on and off for a few years.
    Essentially it rents well, but will have poor capital growth prospects.
    Every day you use it, you aren’t renting it (but are enjoying it).
    Bed and body Corp fees need to be considered.
    Some places have a capital gains recoup clause (20 or 25%, I forget which) as part of the body Corp regs, when you eventually sell. Not many, but it is exists.
    A parking space appears to be worth about $50K.
    You are ‘supposed’ to have it available for 26 weeks a year to the public regardless (more honoured in the breach than in the observance I suspect).
    No notation is avail in the lease as to the sub-lessee’s rights at the termination of the head leasee’s lease, in 40 years or so.
    YMMV
     
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  5. Ozgirl

    Ozgirl A Local
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    If i was to buy down there - either Jindy or Thredbo.

    I would seriously consider renting the property out long term until the the mortgage etc became more manageable.

    It would be a long term plan.
     
  6. DidSurfNowSki

    DidSurfNowSki One of them
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    How many beds ?
     
  7. climberman

    climberman CloudRide1000 Legend
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    Thredbo would be manageable really quick because the bank will want you to have 40-60% down as deposit due to the lease arrangements.
     
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  8. piolet

    piolet Found anything yet?
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    That's what I was going to mention, you may not get an 80% loan due to the lease arrangement and National Park weirdness.
     
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  9. zac150

    zac150 One of Us
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    This can also be covered via cross collatoralisation. So it might take longer to pay back the unit.

    Capital gains on our family place in Thredbo would have been on par with Canberra if not slightly better.

    What climberman has said in his first post is pretty spot on, also allow for large letting fee’s and ridiculous cleaning fees. We have 3 un booked days this year but we only use the unit privately for 7 days.

    If you try and take weekends etc your vacancy rates would increase as booking agencies etc will go to the flexible first. If you block book say 2 weeks and rent the rest this works better.

    Also remember that what you don’t take in rent is what your accommodation costs I.e if you take the unit every weekend then you are effectively paying say $2k a weekend for accommodation.
     
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  10. zac150

    zac150 One of Us
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    You won’t get an 80% loan.

    Most founders are capping at 60% now, there used to be 1 or 2 at 70% but I haven’t checked their policy in the last couple of months.
     
  11. Snow Blowey

    Snow Blowey Part of the Furniture
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    On capital gain / loss - i'd imagine in bad times you'll take abig hit in this setting compared to others. On the basis that its a recreation destination and in bad times people have less to spend on recreation - or are less willing to buy a holiday home.
     
  12. zac150

    zac150 One of Us
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    Snowy I would agree on this in principle, just look at the coast etc when Canberra booms so does the bay.

    Thredbo and Jindy have been solid in their growth for years and I did expected Thredbo to drop a little after last season and tightening of lending but it hasn’t happened yet. That’s not to say it won’t happen just look at Sydney, it has come off meaning values are down so people won’t have the same equity to use to buy in the mountains. Maybe things may slow a bit but there isn’t much up there right now.
     
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  13. climberman

    climberman CloudRide1000 Legend
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    The drop in Sydney prices is so theoretical - prices are back 8 or so % but that’s like back to mid last year!
    Some things hanging in the Thredbo market for years, others go in two weeks.
     
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  14. piolet

    piolet Found anything yet?
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    Yep it's just taken a breath
    Quality still flying off the market

    Off that I'd suggest a slight retraction on Sydney's "subsidiary" markets for the short term and if Sydney keeps doing it's thing, so will Thredbo etc
     
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  15. fmdc9

    fmdc9 Hard Yards

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    australia's population is growing too though, but its alpine areas aren't. youd think thattd support prices for the foreseeable.
     
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  16. zac150

    zac150 One of Us
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    I’m not sure we haven’t seen the full credit effect on the market yet. I’m seeing borrowers dropping 25% in their affordability.

    I’m not saying this in a “the worlds going to end” theorist manner (not naming names but you know who I mean). But I think it eventually has to bite a bit.

    There are also always properties that hang on the market due to unrealistic owners. What I have seen this year is a massive gap in the market between $500k and a $1m.

    That said I hope the market flourishes as it’s great for me.
     
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  17. climberman

    climberman CloudRide1000 Legend
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    Yeah I agree.
    Property is a funny thing, I think some owners pick a price and just decide theylll never budge, regardless of market status, buyer feedback, anything!
     
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  18. Snow Blowey

    Snow Blowey Part of the Furniture
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    Not trying to derail but every time i have the idea of buying somewhere i'd like to live and recreate i always end up thinking it would be better to invest the same money into inner capital city (or to shares) and simply use money raised from that investment to pay for accommodation where i want to recreate. But enacting that strategy is harder than it sounds as i struggle to get past spending money on accommodation full stop.

    The other thing holding me back from the mountains is the distance i have to travel to get there. Last thing i want to do is spend all my travel patience making summer maintenance trips and never not feel like going when the snow is on the ground.

    Not a problem for canberrans.
     
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  19. gareth_oau

    gareth_oau Pool Room
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    Married couple. She wants to sell. He doesnt. In his name tax reasons. Priced accordingly LOL
     
  20. zac150

    zac150 One of Us
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    This is a funny one, I see so many people with caravans down the coast paying $5k to keep them on sight and using the vans once a year. I think I ccould get a great holiday for the $5k.
     
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  21. Snow Blowey

    Snow Blowey Part of the Furniture
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    Interesting. It has to bite. Asset is only worth what someone can pay for it. Can remain out of balance for a while as people can delay sales to wait for better times. But all those baby boomers staking retirement on selling one or more investment properties can't wait forever.

    Dubbo RE seems to have gone a bit silly over the last 2 years following some favourable investment yield data published by Domain two years ago. But i'm seeing more and more "For Lease" signs around town in front of houses. 2 years ago it was damn hard to find anything to rent and you'd never see For Lease signs at all. I'd say theres been a bit of city money chasing yield combined with increased demand by the local cashed up bogan and i'd say its gone too far and will correct once people realise the rental market is not supporting the level of investor housing.
     
  22. zac150

    zac150 One of Us
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    Some people just aren’t realistic about what they have. Just because a 3 beddy in the centre of the village sells for x our three beddy must be worth that.....
     
  23. Snow Blowey

    Snow Blowey Part of the Furniture
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    Don't start me on all those $250,000 landcruiser and caravan setups i see on the Newell all year round. And you always seem to hear stories of people selling up the home to finace the 4wd and caravan. Great move there. Sell an appreciating asset that could be generating income for you and funding road trip for two depreciating assets with a limited lifespan.
     
  24. zac150

    zac150 One of Us
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    True people can hold out for better times and that effects the supply side, but the demand side is also being held back by affordability.

    The issue I have is what will happen when off the plan purchases realise they can’t settle because they can’t get a loan approved.
     
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  25. climberman

    climberman CloudRide1000 Legend
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    There’s nought as queer as folk.
     
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  26. Donzah

    Donzah Old n' Crusty
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    Same in Jindy.
    I'd take a punt and say half the vans in our park are in that boat.
     
  27. climberman

    climberman CloudRide1000 Legend
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    Dunno, but if it makes for bargain basement bedsits in inner Sydney I wish it would hurry up!
     
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  28. zac150

    zac150 One of Us
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    Yeah I don’t think this will happen,
     
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  29. gareth_oau

    gareth_oau Pool Room
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    I know that if Nikki wanted me to sell the Audi (and be sensible) the listing price would enure we could never afford to sell it LOL
     
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  30. cin

    cin Old n' Crusty
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    pray to go bald and you won't have to worry about the barbers advice :D
     
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  31. piolet

    piolet Found anything yet?
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    Good in the long term if growth and repayments make it owned outrught/relatively small mortgage
     
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  32. climberman

    climberman CloudRide1000 Legend
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    :(
     
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  33. piolet

    piolet Found anything yet?
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    You can't bring your dog to thredbo, right?
     
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  34. climberman

    climberman CloudRide1000 Legend
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    Not legally
     
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  35. kiter

    kiter Addicted

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    a much better idea is get a tent from bcf ( they might chuck in an esky if you pressure them ) and camp for the small price of national park entry at Nagario or thredbo diggings (bring your own firewood and toilet paper )or even better stay for nothing at the rarely used hut at bullocks flat right on the river next to the railway bridge . Invest your money elsewhere (just google property hotspots its not all bad news there )
     
  36. piolet

    piolet Found anything yet?
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    Was just making sure, wondered if there may have been some allowance in some circumstances.

    Ta
     
  37. DidSurfNowSki

    DidSurfNowSki One of them
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    Can I bring my animal into a park?
    Pets and other domestic animals are generally not allowed in parks, but there are a few exceptions.

    If you have a disability and need an assistance animal you can bring your animal into a park, as long as it is certified as a trained assistance animal.

    If you need to drive through a park to get access to private property, because there is no other practical access, you can take your pets across the park. You must not stop in the park and must keep your pets inside the vehicle while crossing the park. Check with your local National Parks and Wildlife Services (NPWS) office to find out which parks this applies to.

    Working dogs can travel through a park if they are being used to move stock along an authorised stock route.

    http://www.environment.nsw.gov.au/t...d-protected-areas/park-policies/pets-in-parks
     
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  38. piolet

    piolet Found anything yet?
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    No probs. Just seen one or two in the past and wondered if locals were allowed
     
  39. Untele-whippet

    Untele-whippet beard stroker
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    3 un booked days.
    I see what you did there.
     
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  40. gareth_oau

    gareth_oau Pool Room
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    and save an absolute fortune on shampoos
     
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  41. zac150

    zac150 One of Us
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    See in is bad, don’t be like un
     
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  42. chicski

    chicski One of Us
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    Yep. Guide dogs are allowed in.
     
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  43. Piste Again

    Piste Again Part of the Furniture
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    No mention of sniffer dogs used by the police there?
     
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  44. skull

    skull One of Us

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    Working dogs moving stock along
     
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  45. LaNeige

    LaNeige One of Us

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  46. Arne

    Arne One of Us

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    If you are reading this thread. Do it, if it doesn't send you broke. I don't rent mine out. Have made a museum out of it with ski memorabilia I have collected over my life(my wife calls it a shrine).
    Its a small one bedder in a solid building centre of the village. Under 10k on outgoings annually is about the same we spent as a club member. We do as many summer trips as winter now. The family love it. Though are not as addicted as myself. Ski bike hike relax...whatever. I love it
     
  47. climberman

    climberman CloudRide1000 Legend
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    This is kind of where I might be at.
     
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  48. cin

    cin Old n' Crusty
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    I'm one of them!
     
  49. skinavy

    skinavy One of Us

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    You're a guide dog? They're cleverer than I thought.
     
  50. gareth_oau

    gareth_oau Pool Room
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    i think Cin's hair and wet nose is confusing you
     
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