When it comes to suburbs with hot prospects for investors, regional NSW offers plenty of opportunities.
It can be easy to think that Sydney is where all the action is for residential property investors but those who cast their net beyond the metropolitan area can be well rewarded.
Wollongong – worth a look
Australians love the water, and to the south of Sydney, the Wollongong market offers a number of pluses including pristine beaches and affordable property prices.
Demand for rental accommodation is aided by the University of Wollongong, and investors are enjoying rental yields that are in the order of 5.0%. In many suburbs prices remain low though a recent report by valuers Herron Todd White, found that demand has driven prices higher in the past two to three years particularly in the lower price brackets.
The Hunter continues to boom
To Sydney’s north, Newcastle also offers great beaches along with good transport links and a healthy local economy. However the big capital growth story is more likely to be found in Newcastle’s satellite suburbs. The ongoing growth of Newcastle airport and the RAAF base at Willamtown for instance, has provided a boost to Medowie values. In fact, most Hunter Valley suburbs within commuting distance of the region’s minefields particularly at Singleton and Muswellbrook, are experiencing low vacancy rates and strong rent returns. Capital growth will be further supported with the completion of the Hunter Expressway in late 2013.
Go for gold
On the western side of the Great Diving Range, the expansion of the Cadia Valley gold and copper mine has seen the Orange property market earmarked for future growth. Further west, Gunnedah is already seeing steep climbs in rents and property values in response to increased mining activity.
The coast road picks up
If you’ve travelled along the Pacific Highway through the north coast recently it’s impossible to miss the sheer scale of road works taking place. The Highway upgrade is attracting workers to the region and this is adding to demand for rental properties along the coast especially around the Coffs Harbour area.
…and the downside
It is worth noting that investing in any regional town can involve higher risks than metropolitan areas. This is especially the case if the local economy relies heavily on one dominant industry – something that can apply to resource rich locations.
When you’re ready to invest, your Aussie Broker makes it easy to select the right loan for your needs.