METROPOLITAN real estate investors are snapping up homes in Tamworth, sometimes only a day or two after they hit the market.
While the NSW government has put incentives in place to encourage first home buyers to enter market and the nation’s financial sector watchdog, the Australian Prudential Regulation Authority, changed lending criteria to curb investor borrowing, investors are still finding their way to the ripe Tamworth real estate market.
Raine and Horne principal Bryan Bolitho said units, regardless of what part of the city they were located in, were very popular with Sydney-based investors – sometimes selling in a day or two.
“Whenever one goes on the market we get smashed with enquiries and they’re generally selling in 24 to 48 hours,” Mr Bolitho said.
“Sydney is too dear for the average punter, and Newcastle is still very expensive, so they’ve started migrating further west.
“With all the infrastructure going on in Tamworth - the airport and the abattoir - people are seeing it as a good investment destination.
“And with an average return of 5.5 per cent on their investment, it’s hard to go wrong with an investment property in Tamworth.”
First National principal David Doherty agreed Tamworth was an increasingly popular investor location, given its affordable housing prices that boasted good investment returns.
“We’ve got a place that’s for sale near the hospital, that we thought would have been snapped up by now – locals are overlooking it, but a Sydney investor has moved on it very quickly using their super fund,” he said.
“On a rising tide, all ships rise – it comes down to how many boats you have on the harbour. A Sydney investor could buy three or four properties compared to the one they’d be getting in Sydney, and they can get a bigger return on their money.”
It’s not all bad news for locals looking for their slice of the Tamworth real estate market. A lack of listings in the region means anyone looking to sell a house may be able to get better price – particularly, if it’s a property in a sought after area.
“Three weeks ago, we sold all but one of our listings in East Tamworth in one week, and that last one was up for auction,” Mr Doherty said.
East Tamworth is “running at a premium” at the moment, while the block of West Tamworth, bound by the golf course, Bridge Street and West Leagues Club is also in hot demand.