The whole South Coast has undergone an enormous transformation in the last five years. Former would-be Prime Minister John Hewson recently set a new real estate record in our area when he bought an oceanfront villa at Guerilla Bay for $2 million. In 2004, actress Nicole Kidman's brother-in-law, Angus Hawley, flew in a private chopper to nearby Rosedale to bid $1.47 million for three rustic log cabins on the beach. Two months later he bought a modest three-bedroom house next door and an adjoining vacant lot for $2.53 million on the instructions of the Hollywood star who has now engaged a Sydney high-end residential construction company to build on it a supa-dupa $2 million house. Rosedale is a town with no pub or restaurants and none of the exclusive boutiques from which Kidman would buy her red carpet frocks. Yet despite the lack of any real glamour in the tiny seaside community, she is now the owner of a mere 3000 square metres of prime beachfront land for which she has paid $4 million - with another $2 million to go!.

There are now dozens of properties in the million-dollar-plus range on sale, many no more than suburban blocks, some with waterviews, and just a handful actually fronting public waterfront land. "Riverbend" is unique in that it has HUNDREDS OF METERS of ABSOLUTE WATERFRONT with no public access, and it is on an acreage with total privacy, no neighbours, and never to be built out! No visible neighbours but still within the village neighbourhood and walking distance to the village store, café, village church and village hall, and pub and tennis court.

Of the few absolute waterfront properties on acreages along the Clyde River, "Riverbend" is perhaps the most accessible and the closest to Batemans Bay. It is at the bottom of Sproxton Lane, a cul-de-sac, which leads directly to the Kings Highway, 8km to Batemans Bay one way, 120km to Canberra the other.

Building blocks of little more than a quarter-acre (1000 square metres) in size have sold in Sproxton Lane at around $800,000. One recent sale at that figure had a termite-eaten beachshack on it which the new owner promptly demolished to build a new residence rumoured to be worth in excess of $1.25 million. So how much for a whole seven to eight acres with a substantial and solid two-storey house on it and many other improvements?

Let's try to "unbundle" it and deal first with the land, then the house and other improvements, and finally the established B & B business:

• "Riverbend" 's 7-acre-plus land must surely be much more valuable than those quarter-acre vacant lots in the lane that went for around $800,000.
• "Riverbend"'s substantial brick-and-tile double-storey residence is insured at a replacement value well in excess of $600,000. Add to this a fibro guest cottage, a library in solid brick-and-tile, a metal workshop and carport, and a 3-bay wooden utility shed, and the total replacement value exceeds $1million.
• A wood-and-corrugated-iron-roof shack across the lane, on some 1,700 square metres of land, together with an adjoining vacant block of the same size, sold recently for $1.7million.
• A modern residence just up the lane on a 1,600 square metre block is currently on sale at $1,950,000.
• An older-style house, also on approx. 1,600 square metres, sold just weeks ago for $1.2million.
• "Riverbend" 's substantial residence and the location must be at least as valuable as some of the "showy" properties facing a public beachfront reserve along the coast which sold for $1.5 million right up to $2 million.
• "Riverbend" 's unique ABSOLUTE WATERFRONT, jetty license and boat mooring would also command a substantial premium.
• "Riverbend" 's guest cottage is an established and successful business in its own right. The current owners value their privacy and are therefore reluctant to rent it out to overnight and weekend guests. Their MINIMUM BOOKING REQUIREMENT OF ONE WEEK means that they are missing out on all the potential weekend incomes as well as the three or four-day bookings over long weekends and public holidays. Cottages similar to the "Riverbend" guest house in the Nelligen Holiday Park and the Post Office B & B in Nelligen rent for upward from $160 a night. By comparison, "Riverbend" could charge a premium to these rates as guests would not have to share their facilities with any other guests. Conservatively calculated, the "Riverbend" guest house could generate a profit well in excess of $25,000. Typically, a business may be sold at ten times its annual profit. So does the guest house add another $250,000 to the value of the "Riverbend" property? You be the judge!

Some time ago, the current owners asked for a valuation by an independent valuer. He came back with something along the lines of "... $1.8million, $2million, or more, it'll all depend on the buyer ..." They could've saved themselves the $770 they paid for that 'on the one hand, on the other hand" professional valuation.

A later valuation came in at $1.64million. That was after the valuer had been told that the latest offer - which had been rejected - had been for $1.64million! What a coincidence! That valuation had been commissioned by the lender and with valuations it's 'he who pays the piper calls the tune', and a lender is looking for no more than a fire sale valuation in case the borrower defaults.

The most recent assessment by a realtor who took into account the latest sales in the neighbourhood came in at $2.15million; however, the owners will consider very carefully any written offer OVER $2 million.