TAMWORTH has been named as one of the country’s top regional “hot spots” for real estate investment.
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The Your Investment Property magazine nominated the city as one of the centres “set to surge” in the coming years.
Estimated population growth of 0.6 per cent a year, which will swell the area to 67,750 people by 2031, was a key factor in the listing.
High rental yields, particularly in Barraba, South Tamworth and Oxley Vale, were also highlighted as proving attractive to potential investors.
But the magazine said the prospect of the creation of “thousands” of new jobs through several large developments was perhaps the biggest thing in Tamworth’s favour.
“Infrastructure projects incl- ude the $220 million Tamworth hospital upgrade, which will provide better facilities for patients and an increased capacity,” the report stated.
“There is also the $300 million grain refinery near Tamworth, which is expected to create up to 500 jobs during its construction phase and another 75 full jobs once it becomes operational.”
PRDnationwide Tamworth principal Dean Cummins said the city was “certainly worthy” of inclusion on the list, which also featured Newcastle, Geelong, Geraldton and Mount Gambier, among others.
“Tamworth is one of the best-kept secrets in real estate,” he said. “Anyone looking for investment in Sydney would have seen the capital prices go through the roof and the rental returns be a little slower to go up.
“Our rental returns are quite strong here and you can buy a house in Tamworth and have it pay for itself, which isn’t always the case.”
Mr Cummins said higher rental yields combined with much lower median prices made a compelling case for investing in Tamworth.
“One of the benefits in Tamworth is the deposit an investor needs to buy a place in Tamworth is significantly lower than in Sydney,” he said.
“An investor would typically put 20 per cent into a property, so if you’re buying a $300,000 property in Tamworth that would be $60,000. In Sydney, where median pricing is heading towards $1 million, 20 per cent is $200,000, so people can buy one here and then buy another in a few years’ time.”