Buying in the Blue Mountains

By Alex May

Fresh mountain air, cute country cottages with rambling gardens and stunning bush views – what’s not to like about the Blue Mountains?

Sure, the commute gets some people. And the cold terrifies others. But the lure of some of Sydney’s most affordable property ensures a steady stream of people clamber for cooler climes and houses that cost less than $350,000.
Century 21 Central Mountains Hazelbrook principal Chris Delfsma says first home buyers priced out of Sydney are the majority of buyers in central mountains villages like Hazelbrook, Lawson and Faulconbridge.
Properties can be snapped up for the low-$200,000s in the central and upper mountains, especially older style cottages that need work. A block of land can be had around Blackheath as cheaply as $119,000.

“The cheap things do go fairly quickly, but you can usually find a nice three bedroom house with a garage for around $300,000 near Faulconbridge or Lawson,” Delfsma says.
Villages like Blackheath and Mount Victoria in the upper Blue Mountains and the larger towns like Katoomba also offer an array of houses for under $350,000.
Richardson & Wrench Blackheath principal Adele Colman says properties that sell for under $350,000 are in hot demand from both first home buyers and people seeking a weekend retreat.
“We have plenty available in that under $320,000 price point and they do tend to sell more quickly than properties priced above $350,000,” she says.

“You will get something very nice in Blackheath, Medlow Bath or Mount Vic for less than $400,000 and $600,000 would buy you something at the top end of the market.”
Colman does warn that the commute to Sydney from Blackheath – which is nearly two hours – can be a killer for most people.
“People come here for the village atmosphere and the beautiful bush setting rather than to commute to the city,” she says.
Raine &Horne Wentworth Falls principal Matthew Gale says Leura has always been the real estate gem of the mountains, but more and more people are discovering the charm of Wentworth Falls.
“Leura has been done to death and Wentworth Falls has become really popular with people looking for a retreat as well as families,” he says.

“The grammar school makes this area really popular, as well as the golf course and the lake – it’s all about lifestyle.”
The entry price in prestigious Wentworth Falls is around $300,000 and Gale does have a three-bedroom clad cottage on a corner block with new paint and carpet listed at that price.
“You don’t get anything for less than that around here – I would say you’d want to be spending between $450,000 and $500,000 for a nice family home,” he says.
Katoomba is the biggest town in the mountains, with large supermarkets and lots of schools.
Theo Poulos Real Estate’s sales manager Brian Hardy says investors have started selling mountains properties, forcing prices to drop by around 15 per cent.
“The sad fact is that we are listing more than we are selling,” he says.
“Back in June 2003 I said you wouldn’t be able to buy in the mountains for less than $300,000, but now you can buy a decent three-bedroom brick house on 700 or 800 square metres for $270,000,” he says.
The cheapest house Theo Poulos have listed is a two-bedroom weatherboard cottage In Katoomba which needs some work but is priced at $235,000, which wouldn’t even get you a unit in most suburbs of Sydney.
Leura resident Kathleen Giles has just put her house on the market to look for a quieter, more peaceful place to live.

“The Blue Mountains has become a suburb of Sydney and trying to get a parking spot in Leura on the weekends is just too hard,” she says.
Giles says the current road-widening works on the freeway are “stressing everyone out – including the tourists” and will make the Blue Mountains even busier.
“I came here for a change of lifestyle and clean air – I like the peace and quiet … it was the property boom that changed everything,” she says.
Delfsma says the road-widening of the freeway through the central Blue Mountains will make it easier for tourists to stop in the village towns and should eventually stimulate property prices.
“I think over the long term, the widening of the highway and the redevelopment of the shops will be good for this area,” he says.
Delfsma says the traditional central mountains buyer sells their property three years after initially buying it, usually to move back to Sydney.

“People move here, do up a house and then as soon as they have enough equity saved up they will sell and go back to Sydney,” he says.
“Everyone gets sick of the commuting but they use the mountains as a chance to get ahead in the Sydney market.”
Australian Property Monitors research director Louis Christopher says it is tough to predict the future of property prices in the Blue Mountains.
“It’s an area that has not suffered price falls in the same way that some parts of Sydney have suffered price falls,” he says.
“It attracts people for lifestyle reasons and affordability reasons, but the commute can be a real killer.”
Christopher says any suburbs that are more than an hour’s commute from large workplaces “usually suffer in some way”.
“For some reason, an hour is about as much time as people want to give to commute to work so it’s hard to say what will happen to the Mountains in the future,” he says.
“I think the only thing that can really change that will be a high-speed rail, and I don’t think that’s likely any time soon. The road-widening isn’t really going to make the trip between Sydney and the mountains a lot quicker than it already is.”

MOUNTAIN BUYING

• It’s all about the view – the more bush, the better. Properties with dramatic escarpment views fetch the best prices.
• Look for something within easy reach of shops and service stations – most villages have some basic services, but residents of smaller towns often need to drive to get the groceries.
• In Leura and Katoomba, stick to properties on the southern side of the freeway which have good proximity to the villages and are close to the railway.
• Look for older style weatherboard cottages on large land sizes with original features like open fireplaces and high ceilings.
• With restrictions on subdivision and managing bushfire hazards, thoroughly check the zoning of the property with the local council.
• A mature and leafy cold climate garden is a big bonus, especially if it is well-maintained and easy to look after.

BLUE MOUNTAINS PROPERTY PRICES

• Suburb 2003 median 2004 median 12 month change Annualised growth
• Blackheath $294,750 $310,000 5.2% 10.2%
• Blaxland $367,750 $384,000 4.4% 8.9%
• Bullaburra $298,000 $331,000 11.1% 12.8%
• Faulconbridge$329,000 372,500 13.2% 12.1%
• Glenbrook $450,000 $478,000 6.2% 15.4%
• Hazelbrook $310,000 $320,000 3.2% 10.2%
• Katoomba $290,000 $315,000 8.6% 11.2%
• Lawson $292,500 302,500 3.4% 9.5%
• Leura $400,000 $430,500 7.6% 10.4%
• Medlow Bat $276,000 $295,000 6.9% 8.7%
• Mount Victor$242,500 $295,000 21.6% 8.8%
• Springwood $362,000 $375,000 3.6% 9.9%
• Valley Height$330,000 $385,000 16.7% 11%
• Warrimoo $322,475 $347,500 7.8% 11.5%
• Wentworth Falls$355,000 $379,000 6.8% 11%
• Woodford $321,500 $340,000 5.8% 10.2%

Source: Home Price Guide 9339 8200