I received a press release a few days back from Raine & Horne which confirmed something we spotted some time ago.
Blogger: Phillip Tarrant, editor, Smart Property Investment
According to the agency, in the wake of the May and June 2012 interest rate cuts, Raine & Horne Sydney’s west, are being secured by astute investors.is reporting that close to 90 per cent of homes in the Nepean region, in
We picked up a 2 bedroom ex council housing property on a corner block in St Marys in August last year for $215,000. After a reno of $17.5k agent valuations indicated a sales price of $280k. We decided to sit on the property and have now had stable tenants in paying $320 per week since October, giving us a yield of 7.15 per cent – not bad.
According to Peter Diamantidis, sales consultant at Raine & Horne St Marys, while rate cuts are helping to drive up demand for local homes and investment yields, investors are also recognising the region’s affordability and low vacancy rates.
Mr Diamantidis believes that tenant demand is a critical factor contributing to the Nepean region’s low vacancy rates, which I’d certainly agree with. More importantly, however, and the release addresses this, is that property is affordable out in the Nepean if you find the right place, and this is attracting investors from near and far.
With good yields, a low buy in price and the opportunity for capital growth considering development, population shifts and government investment, Sydney’s West is a pretty good bet right now.
About Phillip Tarrant
Phillip is a media professional as well as an active property investor. He has over 10 years’ experience reporting on the mortgage and property markets and has worked extensively with Australia’s leading mortgage lenders and brokers as a corporate communications and public relations consultant. As a property investor Phillip advocates the principals of research, due diligence and surrounding yourself with the right team to make informed and educated property investment decisions. As well as being editor of Smart Property Investment, Phillip sits on the Board of the Property Investment Professionals of Australia (PIPA), the peak industry body for the property investment industry. He also sits on the Board of Publishers Australia, which represents best practice, innovation and professionalism in publishing. These two positions offer Phillip insights and awareness to the latest issues, activities, techniques and best practice principals across both industry sectors and ensure Smart Property Investment remains focused on delivering quality content to its readers.