A major industry head is urging investors to look to the country for investment properties.
According to Angus Raine, CEO of Raine&Horne, while investors are enjoying a strong market in the capital cities, he warns they should not discount country properties.
“While low interest rates, a volatile share market, healthy yields and low vacancy levels are making capital city investment properties an excellent long-term growth proposition, investors shouldn’t overlook a regional property investment as well,” he said.
Mr Raine is advocating the value of owning an investment property in regional cities with long-term capital growth potential, such as Tamworth and Wagga Wagga in New South Wales, Toowoomba in Queensland, Bunbury in Western Australia and Port Augusta in South Australia.
Bryan Bolitho, principal at Raine&Horne Tamworth agrees.
“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.
“Enquiries from investors have been constant, with many looking to purchase around the $200,000 to $300,000 mark, which will deliver a yield of around 5.5 per cent in the Tamworth area.
“There is no doubt that grabbing a property in a regional city like Tamworth can also be particularly profitable for investors and relatively secure, given our vacancy rates are below two per cent.”
In the long term, Mr Bolitho expects property values to continue to flourish as a result of the region’s growing population, which is above the benchmark for regional NSW.