Bridesmaid suburb opportunities don’t just exist in the cities. A buyer’s agent has recommended that investors go further afield than big regional centres to get the most bang for their buck, with Mudgee the perfect example.
Lloyd Edge, buyer’s agent and author of “Positively Geared”, has said regional centres also have what investors dub as “bridesmaid suburbs”.
“Bridesmaid suburbs are ultimately the towns that may not be the centre of attention right now, but they certainly have just as much to offer. And when we take a close look at the numbers, Mudgee proves that even the smaller towns can provide just as good opportunities as some of the larger regional centres,” he outlined.
He said that while the price point in Orange is “obviously much cheaper than what you would pay to invest in Sydney”, he believes a better opportunity could lie in a nearby town just a quarter of the size.
“If you’re price conscious and are looking for a better yield for your money, Mudgee might be a good choice for you.”
Mr Edge highlighted that investors are starting to notice they can receive higher rental yields from investing in Mudgee compared with the much larger Orange.
“For a cheaper investment in Mudgee, you are looking at paying the median of only $470,000 for a house, and if you receive the median weekly rent of $420 per week, then your yield of 4.64 per cent is much better compared with Orange’s 4.12 per cent median rental yield.”
Orange’s median house price is slightly higher, at $479,000.
But it’s not necessarily a better bet – Mr Edge has acknowledged investing as not only about rental return, advising potential investors to exercise caution.
“Larger regional centres like Orange can provide you with a better potential for higher long-term capital growth due to the larger population and multiple industries providing the growth drivers,” he conceded.