Buy in New South Wales on a Budget
Written by Matt Ivers
When it comes to property investment the journalists and analysts often ignore the regions instead focusing on the big cities like Sydney. If your heart is set on investing in New South Wales there is some good news if you look to the affordable regions where you will attract excellent rental returns and future prospects for capital gains.
When you choose to invest in a property in rural New South Wales you want to pick a town with at least a population of 20,000 plus to get the best capital growth and demand for tenants. Other factors, which apply to any property investment, which you will need to consider include the amenities and infrastructure.
One of the keys to finding a successful investment property is to make sure the area has essential amenities that are always in demand like lifestyle activities, schools, public facilities and access to public transport. The upgrade of the Great Western Highway has made the Blue Mountains area look very promising.
Property prices in the region have risen 5 - 10% over the past year which is the best the market has performed in the area for over a decade.
The Blue Mountains region also has a rental shortage which is a combination of good demand and a housing stock shortage.
The region as a whole is performing very well with towns like Lithgow and Oberon attracting a lot of attention. Larger towns like Bathurst and Orange are performing steadily due to having a good economic mix to infrastructure.
Investors can pick up a decent, modern property for $300,000 - $350,000 with good growth and returns.
200 Kilometres west of Sydney and on the major highways Bathurst is a great investment area. The median property price is $340,000.
The Central West city of Orange is 254 kilometres west of Sydney with a population of 39,766. There are a number of key industries in the area like health care and social assistance which are good from an investment point of view due to their longevity.
There are a number of new housing estates in the Orange area. The median price of property in Orange is $337,250 with an annual capital growth at 2.76%.
Port Stephens is located in the Hunter region of New South Wales and lies within the Port Stephens-Great Lakes Marine Park 160 kilometres northeast of Sydney
Port Stephens is very popular with families looking to rent a three bedroom property in a nice, affordable location. The town is experiencing its best performance in over a decade.
The median value of houses in Port Stephens stands at $319,500 whilst units are $241,500.
In the past 13 years, there has been over $500 million worth of housing built in the Warnervale area. By 2036, the greater Warnervale population is expected to grow by 40,000.
There are some positive signs about the future of Warnervale with the current development of the new Warnervale Town Centre. Prices are rising and there is a lot of demand for properties in the area.
A 595 plot residential project is being planned by developer AV Jennings which will be close to all the key amenities in the area like the Warnervale train station, Warnervale Village and the future Warnervale Town Centre.
Consider SE QLD
If you are looking to invest on a budget, I would also strongly encourage you to consider Southern Queensland as a viable very affordable alternative. Queensland has Australia’s strongest rental returns for a major city yet is currently priced at regional New South Wales prices with the added bonus of being a major population centre.
More about Matt Ivers
Matt started Vision in 2000 after working in the media marketing and sales industry for over 10 years, culminating with a stint with a large mortgage firm. Now, Matt is one of the country’s leading finance brokers, helping hundreds of clients develop their property investment strategies. You can contact Matt here or email and Matt will call you.
What people say:
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