Investors looking for growth should consider regional property assets, according to Raine&Horne.
With strong prospects for capital growth and relatively low vacancy rates, Raine&Horne CEO Angus Raine said investors shouldn’t overlook a regional property investment.
Cities such as Tamworth and Wagga Wagga (NSW), Toowoomba (QLD), Bunbury (WA) and Port Augusta (SA) were picked by Mr Raine as areas with long-term capital growth potential for investors.
Raine&Horne Tamworth principal Bryan Bolitho said in Tamworth, investor enquiries are constant for houses between $200,000 and $300,000, which will deliver a yield of about 5.5 per cent and are seeing vacancy rates below two per cent.
“In Tamworth, it’s possible to buy an older style, three-bedroom home, with a single bathroom and garage for around $250,000, so your money can go much further in a regional town like ours,” he said.
Mr Raine offers advice for investors looking to buy in regional towns – most importantly, to look for towns with a diverse economy. “Look for towns that have viable, growing economies, while predicted rises in population and employment are key, as these bode well for long-term real estate growth,” he said.
“A diversified economy is also important, as a region that supports a variety of industries is better placed to withstand a downturn in one sector.
“Features that attract renters, like access to public transport, major roads, hospitals, schools, universities and jobs in our major cities are also a plus when looking for a rental property in regional towns.”