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Discussion in 'Snow Talk' started by SkiandRideGuide, Jan 14, 2012.
Thanks Tele much appreciated
I;n now thinking for my retirement a hobby-like B&B, whether that be in Thredbo or Jindy will depend on circumstances.
That way we can completely manage it ourselves, and generate a small income through retirement
Ergh. Just get a property manager to look after it. Things are getting pretty competitive in Thredbo, maybe you could negotiate better fees/commissions and avoid all the hassle of trying to do it yourself
I opened discussions with my wife a few days ago about retirement and skiing, expecting that the topic would be vetoed immediately. Surprisingly she has been quite receptive and positive about the idea of spending a few weeks in or near the mountains each year.
So far discussions have ranged from a caravan at Berridale, to a unit in Jindabyne, to buying land and building a dual occupancy, to some sort of on-snow buy-in.
It looks like my timing couldn't have been worse. Vacant land in Berridale could have been had for as low as $50K last year, now anything under $100K is under contract. I 'd when I found this thread this morning and started reading from the beginning. All that doom and gloom and prices going to spiral down forever.
I'd suggest that anyone who was posting in that vein at the start of the thread, who still has their property, should probably cash it in now.
Just as a matter of interest @gareth_oau, what sort of scale of B&B are you thinking of?
Was talking to a local property tycoon on the lift the other day, and he mentioned how all of a sudden this year everything just sold.
More relevant to jindy but in the 3 years after gfc annual unit sales were in the mid 30s then shot up to the 80s and was about 160 last year.
A one bed room unit in Jindy that we looked at was selling for about 110 k in 2009 ,the next door unit has just been listed around 180 k.
I'm coming around to the idea of a lodge membership. I'd looked casually in the past when lodges were mentioned in the forums but the ones I looked at didn't seem to offer great value. But doing a bit of legwork this morning, sitting down with village maps and Googling each lodge in turn, has turned up some interesting possibilities to follow up.
Other than that, I'm inclined to think that building a house and granny flat in or near Jindabyne would suit our needs. Probably let the house on a residential rental and keep the granny flat for our own use so we can just come and go whenever we feel like it.
Lots and lots of Canberra and Sydney Boomer money hitting town.
Is it like the coast? Two years later they are in the lawn cemetery and the house is back on?
One can only hope...
(with tongue firmly in cheek)
Not Chinese investors?
The everyday mainlander only likes metro cities to launder their cash.
Nothing Commercial, we are just thinking a home of our own with one or two bedrooms in a lock-off wing - like I said, something of a hobby income type deal, which we can use or shut down as the whim dictates.
I suspect Jindy would be our target, then I can go early morning skiing while Nikki looks after the guests' breakfasts!
Fk a B and B, that's a job not a retirement.
I would not be suprised if many are a fair bit younger than that.
Its also a combination of a few things , cheap season passes has reignited interest for the whole area.
If your sitting on a 500k house in Sydney, a 300 k house or unit in the Snowy Mountain looks a bit overpriced.
If your house is now worth 1 mill and that place down south is still around 300k ,it now looks a lot more appealing.
And the other issue for a lot of people that do multiple trips over the season and spent a fair bit of time there is the amount of money they spend every season on accommodation, which can work out pretty expensive if you start spending over 3 weeks there every winter , are over roughing it a bit and would prefer a comfortable place to put their feet up every night.
Oh definitely. I know a few youngans down there that have bought with parents cash stash. Gotta get the pension ya know.
Nailed it. Perception of wealth.
There's a big age gap between boomers and getting your parents to pay.
20 somethings with $300 clicks cash in the bank. I don't think so. Thanks Ma, Thanks Pa. Just check out allhomes and see how many full transfers are going on in Jindy.
When i said younger, I was referring to someone younger than a baby boomer.
Not necessarily a young person
And anyone with lots of equity in their home can do a full transfer on a new property.
People want space and the perception of freedom. Sydney is very "rules based" these days with competition for recreational space at a premium. Professionals that can afford to "drop out" combine with the "looking for affordable simplicity" and "safe child environment" white enclave seeking market in Jindy.
100acres for 300k, off grid affordability .... backing onto a vast mass of green wilderness with established infrastructure
I do actually know a few 20 somethings that have their piece of Jindy paradise via Ma and Pa.
I'm talking one or two beds at most, nothing on a commercial scale
There's all of Gen X between baby boomers and some 20'somethings!!!
The dream just got a whole lot harder!
The banks have been under pressure from APRA to adopt more conservative lending policies and ski leases are under pressure; simple logic, if you have less to lend, change policies to lend that money where the risk is lowest.
I don't want this to descend into a debate on property risk or snow lease risk but this is the banks position.
Anything in the park requires much higher deposits than outside, which is possible one of the reasons Jindy is moving price wise as more people qualify to buy there than Thredbo.
Incidentally, it could be argued that what is happening with snow property prices is symbolic of australia property market. As people get equity in there homes they convert that to investment property, hold it using tax incentives and then sell.
I wouldn't be surprised to see prices soften in Thredbo in the coming years as demand drops due to fewer financially qualified buyers.
I have been watching the market up there and agree with TC that most of the property had dried up but I would qualify this and say that, the property which appears to have dried up is the $400 to $800k mark, over that properties are sitting on the market.
it will be interesting to see what happens over the coming months / year.
FYI on the SMSF comment, you technically can't use a property if it is held in a smsf. I'm sure people do, but you are not supposed to.
My impression of a B and B is only one or two beds.
I've always thought it sounded like hard work.
that's why I have Nikki
How much money can 1 or 2 bedrooms for 2 months of the year generate anyway?
Is it really worth it?
Personally I have always thought Thredbo prices are over-rated.
I would probably not even buy a place in Jindabyne at current prices , it was only the gfc that really changed things for us and opened up some options in Jindabyne.
I had spent a few winters living/ working there in the Mid 90s and in summer moved back down to the far south coast of N.S.W.
But back to the previous post , I have no idea what a 2 bedroom apartment in Thredbo gets , but in Jindabyne you would get just under $2000 p/week,thats after you have paid about 20% commision to the managing agent and around $120-$130 to the cleaners after each stay , depends really if you sleep 4 or 6 , then you still have the power bill, and after that normal running costs,(rates,ins,strata etc).Bookings from very late June to mid August are pretty easy to get , and then start to tail off and then cease completely until Christmas
Start using it heavily in July and it just turns into a big money pit.
At the end of the day ,it all comes down to your purchase cost.
When the N.S.W economy is doing well , everyone wants one ,when it all turns to shit(like after GFC) no one wants to go near one.And those that borrowed heavily are trying their best to offload them.
It's not planned a business, but a hobby.
Our intention is for retirement revenue, probably well below any tax thresholds
"Start using it heavily in July and it just turns into a big money pit."
Never, ever use your own property in peak, fullstop. That is top $$$$$$$s. Go and find a lovely self-contained place in Thredders and enjoy the price reduction!
Investment in Thredbo or anything within the K National Park, gets Bedding Tax. What really is it ? Is it why there`s constant turn over of the cheaper units/dwellings in said region ? Tax.
I think buying in Kutchan is a better option !
Saw a four bed three bath place in Jindy that grossed $60k last year (12 months).
A bedsit in Thredbo will gross around $10 k or over, for a full season rental. It'll go for ~$1k a week.
Capital gain is low in general.
Yes I am definitely not a boomer (gen x), and my wife is one of those gen y types. We have been looking recently.
Prices have jumped in the last 4 months. A couple I looked at recently would have been 50K over what similar properties sold for last Oct, first open home and they were under contract that afternoon. I walked thinking too expensive based on past prices.
Another one I got an email for and contacted the agent a couple of days later, again under contract within that time.
I'll keep looking but do not want to rush in. This will be a full time weekender as we also mountain bike ride so I see us using it at least 40 weekends during the year and school holidays.