Former Kandos butchery sells for lean $80,000 as investors bite into mining town opportunities
A former butchery in the small central west NSW town of Kandos has sold for a seemingly lean $80,000.
But the sale highlights the emerging renewal of the town as nearby mines bring investment opportunities.
It's triggered a 19% hike in the town's residential median house price over the last year to $160,000, according to RP Data, with local agents suggesting there have actually been two consecutive years of strong growth.
The buyer of the former main street butcher shop has recently turned the 474-square-metre property with extensive cool room into a pizza store.
Its $80,000 sale price through Campbell’s Real Estate reflected annual 3.5% price growth since it 2003 sale. It had been listed at $99,000.
Located 235 kilometres north-west of Sydney and 93 kilometres north-east of Bathurst, the town has benefited financially from nearby mining activity.
Coal mining is increasing in the Mudgee district , a 40-minute drive from Kandos, and a silver mine is set to commence operations in 2013 near Lue village. The proposed re-opening of the cement works that closed ealier this year has given further prospects for the Kandos community.
“Weekly [residential] rent in Mudgee is around $500 compared to $200 on average in Kandos, so we get quite a few people coming down here to live,” says Ian Campbell of Campbell’s Real Estate Kandos.
Various other commercial properties are listed for sale in Kandos present opportunities for investors, however they have languished on the market, unlike the butcher shop, which sold within days of its listing.
The Kandos Newsagency premises is on the market at $475,000, which includes an upstairs residential area. The business has a $950,000 annual turnover.
Angus Avenue premises are listed with a $250,000 asking price, which would reflect an 8.5% gross yield.
At 77 Angus Avenue, a building with a mixed commercial/residential usage, is priced at $275,000.
And 8 Angus Avenue, a commercial property in prime location, is currently listed at $210,000.
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