CONFIDENCE in the coastal property market in NSW is ripe for farmers who are in the enviable position to spend their post-harvest earnings.
As Real Estate Institute of NSW president Malcolm Gunning points out, there are some bargains to be had if you know where to look.
Mr Gunning said the Mid-North Coast, Batemans Bay and Port Macquarie were the best places to invest, but the return on the investments depended on whether the property was holiday-let or permanently rented.
On the whole, there was a good amount of confidence in the east-coast holiday house market, after it took a hit from the budget airlines which began offering overseas trips at rock-bottom prices five years ago.
The Mid-North Coast market was a top place to buy right now, he said.
Mr Gunning said the area was typically two years behind the Sydney market, and as such, hadn't yet experienced the same upswing in property prices Sydney has seen.
"Where the best buying is going on is in places like Crescent Head, Yamba and Coffs Harbour," Mr Gunning said.
"You could buy at places there for not much more than you would have paid five or six years ago."
Mr Gunning said the market in the that area had traditionally been driven by retirees, but had been steady for the past six years because "the baby boomers just haven't been retiring".
"We think we will see movement in the market take place soon as they start to retire," he said.
Mr Gunning said the property market at Batemans Bay was flat, and cited the down-sizing of the public service in Canberra as a major contributing factor.
"There hasn't been any improvement in prices there in the past couple of years, so that's the ideal time to be purchasing."
LJ Hooker Batemans Bay managing director Mike Skuse said the long-term and holiday rental market was strong and buyers could expect good returns on their investments.
He said the permanent vacancy rate for the town was at less than one per cent - an "incredibly strong" market compared to the average vacancy rate of 3pc.
Though returns on holiday houses varied from property to property, he said.
"Our top holiday renter brings in $75,000 a year; the average brings in $15,000 a year," Mr Skuse said.
"Farmers are always flat-out at harvest time, so the great benefit of being involved in the holiday rental market is it's tax effective, but you still get to use the property when it suits you."
Mr Skuse said when buying in the Batemans Bay area, location was key.
"It's all about position. It doesn't matter if the place has old carpet and flaking paint because it's all about water views and proximity to the beach."
A hive of development activity in Port Macquarie made it another area that potential investors should investigate, Mr Gunning said.
"It's seen as one of the hot spots on the coast because it has a lot of development happening there at the moment, including getting an upgraded airport and a new university on the way," Mr Gunning said.
Laing and Simmons Port Macquarie principal Chris Kosh said he had his busiest sales week ever this week.
"We've sold 12 properties alone this week," he said.
