Despite growing fears about soaring house prices, Tamworth is the most affordable regional city in the state to break into the real estate market, new data reveals.
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A median house price of $325,000 and rental yields that are close to double Sydney’s – 5.3 per cent compared to 2.7 per cent – place Tamworth among the best real estate markets in the nation.
The report by PRD Nationwide shows Tamworth is far ahead of the state's next most affordable market in Maitland, where the average house price is $420,000, with rental yields of 4.1 per cent.
Tamworth PRD director Dean Cummings said the combination of good prices and rental yields with a strong employment outlook and the city’s growth made it “one of the best packages available”.
“We’re getting a lot of Sydney investors, and a lot of buyers moving to Tamworth after being priced out of other markets,” he said.
The only thing that’s not at record levels in Tamworth is the number of houses being sold, which peaked at 1600 in 2003.
Last year slightly more than 1000 houses were sold, a decrease from the previous year, but Mr Cummings believes this year that will change.
“It goes on a cycle, and that would be the next part of the cycle,” he said.
“There is likely to be more properties sold in 2017 than there’s been since our last peak in 2009 [when 1200 houses were sold].”
Mr Cummings had a simple tip for locals looking to get into the market.
“Don’t wait around for the perfect home, get something you can afford now and look to upgrade later,” he said.
“The best time to buy real estate was 20 years ago – the second best time is right now.” Tamworth man Sam Rains recently bought an investment property in the city.
“I was actually looking to buy in Sydney a few years ago, but the prices there are so ridiculous it just wasn’t feasible,” Mr Rains said.
“Even with the hefty savings account I had built up, it wasn’t going to make a dint.
“All the advice I got, from people here and in Sydney, was that Tamworth is a great spot and only going to get stronger.”
Mr Rains said it only took two weeks to fill his new house with a tenant.
“From an investment point of view, its was quick and easy,” he said.
“The other benefit is that Tamworth isn’t a city that relies on just one industry. It’s diverse so it’s always going to boom and prosper.”