Investors from the nation’s major capital cities are flocking to our city to snap up house and land packages and gain returns of up to six per cent in the rental market.

According to Tamworth LJ Hooker principal Richie Thornton, city slickers have cottoned on to the housing market in the district, where they can build a four bedroom home for between $385,000 and $429,000. Essentially, they could build almost two homes in Tamworth for the cost to buy one in some Sydney suburbs.

“The interest from investors is still quite strong and that is continuing,” Mr Thornton said. “They are building brand new properties with four bedrooms, double garages and ensuites and a lot of them are coming from out of town – it’s not so much the locals. 

”They’re coming from Sydney, Melbourne and Brisbane; they’re investors who have been squeezed out in those areas because prices are too high and yields are too low. I have been in real estate for 31 years and in that whole time I don’t think I have ever seen as much of an influx as we’re seeing at the moment.” Mr Thornton rated Tamworth among Toowoomba, Dubbo, Lismore and Wagga at the forefront of the investment boom.

“When they start noticing second hand homes are getting difficult to rent, we will know that we’re getting towards a saturation point. Up until now, that hasn’t happened,” he said. 

“People are taking advantage of the low interest rates, and the only thing that will slow all of this is if rental demand starts to fall.”

Mr Thornton believed locals didn’t fully appreciate just how good the prices are in Tamworth.

“Locals don’t see what people have to pay in the metropolitan areas so it doesn’t seem as attractive. I spoke to a person the other day who bought something in the Sutherland Shire for close to $700,000 and they’re not getting much more rent than what people are getting here.”