Haven’t you finalized yet whether or not New South Wales is Ideal for your property investment decision? Or are you sandwiched between various options available in terms of wonderful cities and suburbs?
Let’s understand how NSW is an excellent state to consider for investment property.
None of us is unaware of the smash that took place in the real estate industry by the grace of Covid 19. Many Real Estate Markets in Australia showed resilience and bounced back after the hit of Pandemic. Now if we ask you given the choice and circumstances where would you like to invest in NSW? Won’t Sydney top your mind? What we are pointing at is that naturally Capital cities flash out first in our minds and it is a good and probably a safest decision or thought. But, if you are an investor you must be analysing the market from a few years back. Apart from the Capital cities, the regional cities now-a-days are banging the capital cities too due to the advancement in culture of working from remote locations and people seeking more relaxation and peaceful lifestyles and other developments as well. So, here we will be talking about Seven such cities which are flourishing in NSW and some of them are more affordable as well!
But before we start, kindly note that this article is all based on our research and is only for information basis. Investment planning shall be purely financial strategy based hence, prior to your final decision you must consult the experts face to face and understand everything about it. Investment decisions depend on multiple factors therefore, you must prepare your own short listed and ranked list. Remember the more you research, the better your decision can be but again you must take actions as well instead of simply eating the information up.
Cities hitting up in NSW
The following are the cities that we think are worth considering for your property investment in NSW. We do believe there could be many better cities and suburbs to invest in as there is a whole lot of Ocean out there. So, keep digging in and you will find the best option suitable to you.
- Byron Bay:
Byron Bay is a wonderful and lavish beachside town on the northeastern corner of New South Wales with a total population of 9,246 people as per 2016 census. Byron Bay is one of the most high market residential areas of Australia’s eastern coast with the multi-million dollar mansions. Byron Bay is popular for its tourist attractions, food production, wildlife, schoolies week and a lot more. Byron Bay is definitely a loved city even by a lot of celebrities and residents and tourists across the country. Byron Bay is almost everything that a person can name.
According to Corelogic’s latest report, the Median sale prices in Byron Bay for houses is $2,475,000 and for units is $817,500 and the Median rent per week for houses and units in Byron Bay is reported at $1,100 and $720 respectively. The Average Annual Growth Rate of Byron Bay for houses reaches 14.10% and for units is 4.91% with Gross rental yields for houses and units to be 2.31% and 4.58% respectively. Capital gains for last year have been noted at 47.76%.
Yourinvestmentproperty.com suggests DSR for Units to be Good in Byron Bay and houses DSR is considerably above average.
- Wollongong:
Wollongong or The Gong is located on a narrow Coastal strip amidst Illawarra Escarpment and the pacific Ocean. Wollongong has a population of 307,477 people making it Australia’s 11th largest populated City and ranking third in New South Wales. Wollongong has easy access to surf beaches and is predominantly noted for its port activities, heavy industries and coal mining and industry.
Wollongong’s median house and units price has been recorded at $987,000 and $603,500 showing an average annual growth rate of 7.85% and 5.16% for houses and units respectively. The gross rental yields for Wollongong’s houses and units are 2.90% and 3.79%. This means if someone invests in rental property in Wollongong he/she might receive $550 Per Week for houses and $440 Per week as rental income. Investors have taken advantage of 9.48% Capital gains from Wollongong’s property investment. Even the DSR is quite good here.
- Tweed Heads:
Tweed Heads is a friendly town located in New South Wales adjacent to Queensland’s Twin town “Coolangatta”. Being a town with proximity to the Queensland border, Tweed Heads is often referred to as that town which can toggle between time zones and enjoy double New years. Tweed Heads is also famous for its retirement living options. Having said that, young families are also taking shelters under Tweed Heads thereby increasing a good demand for property. Tweed Heads has a mix of separate houses, medium and high density dwellings and Caravans, Cabin and House boats. The Population as per 2016 is 646,983.
The Average Annual Growth Rate for Tweed Heads’s houses and units are 6.17% and 4.74% respectively. The Median Sale Price for houses of Tweed Heads is $935,500 and $590,000 for units. Tweed Heads showed Median Rent per Week for houses as $530 and for units $450 with Gross Rental Yield of 2.95% and 3.97% for houses and units respectively. DSR for both houses and units of Tweed Heads are reportedly very good. The Capital gains made by the investors in Tweed Heads are at good rate of 23.91%
- Orange:
Orange is a prominent tourism city based in the Central Tablelands of New South Wales with a population of 40,493 people. Orange is Australia’s most recognized city for fruit agriculture. Orange is noted for mining, winemaking, media, schools, sports, media, restaurants. The economy of Orange is flourishing over the period of time thereby making it a good time to invest in Orange.
The Average Annual Growth Rate for Orange’s houses and units are 5.68% and 3.72% respectively. The Median Sale Price for houses of Orange is $525,000 and $310,000 for units. Orange showed Median Rent per Week for houses as $420 and for units $330 with Gross Rental Yield of 4.16% and 5.54% for houses and units respectively. The Capital gains enjoyed by investors in last year is 21.67%. Orange has considerably shown very good DSR for both houses and Units as well.
- Bowral:
Bowral is the largest and most prosperous town of Southern Highlands in New South Wales with a population of 12,949 people in all as per 2016 Census. Bowral is well recognized for its boutiques, antique stores, gourmet restaurants and cafes, book stores and art galleries.
Bowral has recorded Median sale prices for houses and units at $1,247,500and $695,000 respectively with Average Annual Growth Rate of 8.82% for houses and 6.20% for units. The Median Rent per week shown by Bowral for houses is $650 and for units is $520 depicting Gross Rental yields of 2.71% for houses and 3.89% for units. Capital gains for last year for Bowral have been noted at 11.38%.Yourinvestmentproperty.com reported DSR for Houses to be Good in Bowral and units DSR is considerably above average.
- Ballina:
Being sited on the Richmond river, Ballina serves as a tourism gateway to Byron Bay and Lismore. Ballina is a lovely town located on the northern rivers of New South Wales with a population of 26,381 people. Ballina has various notable landfalls with access to multiple beaches. The most attention catcher thing in Ballina is the world’s largest Prawn structure.
Ballina’s median house and units price has been recorded at $738,000 and $560,000 showing an average annual growth rate of 6.76% and 5.31% for houses and units respectively. The gross rental yields for Ballina’s houses and units are 3.98% and 3.99%. This means if someone invests in rental property in Ballina one may receive $565 Per Week for houses and $430 Per week as rental income. Investors have taken advantage of 18.08% capital gains from Ballina’s property investment. Even the DSR is quite good for houses and wonderful for units.
- Coffs Harbour:
Coff Harbour is a regional and sporty city between Newcastle and the Gold Coast of New South Wales. With the population of approx. 71,822 people, Coff Harbour is the largest urban centre on the North Coast. Coff Harbour is seen to have a Big Banana architecture which signifies its thriving Banana industry. Coff harbour was predominantly dependent on timber and agriculture. Coff Harbour Jetty is famous among residents and tourists for going on strolls, fishing, paddling and relaxing. Coff Jetty is a historically significant and longest timber wharf used for moving Timber from Hinterlands via Coastal Ships.
Coffs Harbour has recorded Median sale prices for houses and units at $615,000 and $435,000 respectively with Average Annual Growth Rate of 5.33% for houses and 5.43% for units. The Median Rent per week shown by Coffs Harbour for houses is $500 and for units is $400 depicting Gross Rental yields of 4.23% for houses and 4.78% for units. The Capital gains enjoyed by investors in Coffs Harbour in last year is 24.24%. Coffs Harbour has considerably shown very good DSR for both houses and Units as well.
CONCLUSION
The regional cities now-a-days are grooving in the eyes of investors and tend to show increasing values and it appears that they may gain more fame in the upcoming years. Though investing in Capital cities is always tempting, the regional cities can be more affordable and can provide good capital gains as well. Having said that, if you are investing for the first time, you shall also understand what mistakes to avoid while choosing your final property investment decision. A smart investor will always look at the trends of the market and what actually is happening and then based on the analysis, will forecast the future possible value of the property that he/she has sorted out. Now, for this purpose you can always hire an expert who can help you analyze and prepare a proper plan of years considering all the costs involved and possible cost cut downs as well.
- We recommend you to finalise your personal hotspots based on your requirements, needs and Budgets.
- To yet get a better idea you shall know what all factors can add to choose your investment property Smartly.
- From an investment perspective, you should select an asset where the land represents 70% of the value of the property, with 50% as the minimum. Before you make any final decision you must do your thorough research and check out previous years’ performance of the suburbs as well to get better clarity at it.
- We suggest you speak with an expert prior to your investment to get elaborate and clear intimation of how your investment decision can turn the tables.
- Also check into the DSR(Demand to Supply ratio) of the areas shortlisted by you as some may look lucrative to invest but the DSR could be low which may lead to higher vacancy rates.
So with all being said and done, we hope this article was helpful to add another perspective to your decision. Also, If you have already invested into any of these cities earlier then we all would love to hear your honest opinion or suggestion on the same. Until next time, keep researching and keep investing!
