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GUEST OBSERVER
Buyers priced out of Sydney’s property market are set to drive up real estate values in towns such as Bathurst, Wagga Wagga and Tamworth this spring. 
The much-hyped growth in Sydney’s median dwelling price – which has risen almost 16% in the last 12 months to $856,000 – is driving demand for property in some of NSW’s major regional cities.
Towns such as Bathurst, Wagga and Tamworth offer real estate prices that are significantly below the Sydney median, while rental returns above 5% compare favourably to those generated by properties in the capital city. 
These robust population and services hubs appeal to owner-occupiers and investors who are prepared to look further afield, because of quality schools and hospitals, employment, diverse economies, and a comfortable way of life.
Bathurst
Bathurst, 200 kilometres west of Sydney, combines rural, manufacturing and education industries. It has a median price of $343,750 for houses, and $295,000 for units.
"We are expecting a very strong spring market as a consequence of low stock levels, falling days on market and more demand for entry-level property,” said Matt Clifton, Director, Raine &amp; Horne Bathurst.
“First-time buyers purchasing homes up to $650,000 won’t pay any stamp duty and there are discounts for properties worth between $650,000 and $800,000.  
“If we get the stock, it will be a fantastic selling period for those who decide to move house in Bathurst.”
Tamworth
Bryan Bolitho, Principal Raine &amp; Horne Tamworth, says his agency has just listed a 5-acre property at Catherine Way at Moore Creek, Tamworth, in the high $900,000s that will appeal to retired farmers who don’t want to live in town. 
“At the entry-level end, it’s still possible to pay under $250,000 for a three-bedroom house such as 8 Fisher Road, Tamworth,” said Mr Bolitho. 
“Tamworth is the largest inland New South Wales city west of the Great Diving Range, located 40 minutes from Sydney and an hour from Brisbane by plane,” said Mr Bolitho. 
“We have two hospitals, some of the best schools and have almost doubled our water supply. The town is going gangbusters.” 
Wagga Wagga
Wagga Wagga is a central hub providing services to over 185,000 people in the Riverina, in NSW’s southwest.
With strong economic and population growth, its unemployment rate is consistently below state and national averages.
“Economic diversity is the key to the success of regional towns, and Wagga Wagga has this commodity in spades,” said Grant Harris, Director, Raine &amp; Horne Wagga Wagga.
“Government departments such as Centrelink are major employers, and the Australian Army base at Kapooka, the RAAF base at Forest Hill and Charles Sturt University.”
An unusually busy winter real estate market has led to a shortage of housing stock, with listings down 20% compared to spring 2016. 
“We are desperately looking for quality stock and it’s a great time to sell a property in Wagga right now,” said Mr Harris. 
The median house price in the 2650 postcode, which includes 16 suburbs of Wagga Wagga, is $300,000, with a median weekly rent of $340. Annual growth of 5-10% is possible, according to Mr Harris.
“Yields above 6% are common and Wagga’s transient population generally produces low vacancy rates. However, vacancy rates fluctuate depending on the season. They generally fall as the weather warms.” 
There is a lot of sight unseen buying with plenty of owner-occupiers selling up in Sydney and buying acreage that comes with a nice house, noted Mr Harris.
Angus Raine is executive chairman, <a href="https://www.raineandhorne.com.au/" target="_blank">Raine &amp; Horne</a>.
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Raine & Horne predicts a strong spring for NSW regional markets

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Investors, self-managed super funds (SMSFs) and owner occupiers are dominating commercial property in the $1 million to $3 million price bracket, largely thanks to the RBA slashing interest rates to a record low of 2%. This is creating significant interest in the sale of commercial properties with long leases and solid tenants.
What’s more, the falling Australian dollar means Australian property markets are also increasingly attractive to international investors. However on the domestic front we have seen small to medium enterprises (SMEs) sitting on their hands, as they delay a decision to upgrade to larger or newer commercial premises. Still, with the significant spike in residential house prices, some SMEs are now starting to branch out and use this asset growth as collateral to fund new business and commercial ventures.
The other big factor driving some of our commercial property markets is infrastructure investment, with billions of dollars committed to developments such as Barangaroo in the Sydney CBD, while the prospect of a light rail service for busy Cleveland Street is another major plus. In greater Sydney, the Badgerys Creek airport project is translating into increased commercial interest from St Marys down to Camden, while the North West Rail Link and the North Connex and West Connex road projects are also spurring commercial activity.
In regional Queensland, the massive recent infrastructure injection, courtesy of the Brisbane West Wellcamp Airport, has already seen a number of large commercial developments spring up on the western side of Toowoomba, attracting enquiries from businesses considering a relocation from Brisbane. Further north, and the ongoing Inpex LNG project at Blaydin Point in Darwin is expected to propel commercial interest for some years to come.
At Raine &amp; Horne Commercial, we’ve also taken the opportunity to expand our network coverage to Queensland’s Sunshine and Gold Coasts, with the recruitment of businesses from a rival network. The opening of Raine &amp; Horne Commercial Sunshine Coast is timely as the property market in Queensland is starting to show the form that we’ve come to expect from the southern states. Meanwhile, Raine &amp; Horne Commercial Gold Coast has entered a market that is picking up for the first time since the Global Financial Crisis, with the completion of the Gold Coast Light Rail and Commonwealth Games infrastructure buoying business confidenc
Raine &amp; Horne’s growth hasn’t stopped there either, with our international expansion now taking in Dubai in the United Arab Emirates, which has emerged as a leading regional commercial hub with state-of-the art infrastructure and a world-class business environment. Our Raine &amp; Horne Dubai operation is located in Business Bay, which will have upwards of 240 new commercial and residential buildings completed in the next few years.
On a personal note, I’ve also recently exclusively taken on the role of Executive Chairman, in which capacity I’ll be concentrating on further expanding the business in Australia and overseas. 
Angus Raine is Executive Chairman, <a href="https://www.raineandhorne.com.au" target="_blank">Raine &amp; Horne</a>.
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Billions driving infrastructure development: Angus Raine

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After a challenging 2012, real estate markets around the country have bottomed. As a consequence, it’s fair to expect that a smattering of suburbs across Australia could enjoy some capital growth of between 5.5% and 7% – and in some cases a little more – in 2013.  
This prediction is grounded in some part on the assumption that the Reserve Bank of Australia will dish up further interest rate cuts this year, which should aid more home sales and push up property values. Throw in for good measure the chronic shortage of new residential property, coupled with net population growth (increased immigration and a lower proportion of deaths to births), and the fundamentals are in place for property market growth. That said, we are not without some threats, and I accept negotiating the fiscal cliff in the US remains a challenge. However, the days of Australia catching a cold after the latest American economic sneeze are now mostly behind us. In 2013, the health of our economy is more significantly aligned to the latest thrills (and chills) stemming from China. That said, we’ve already seen the impact of a slowdown in China and the transition away from the mining and energy sectors, with unemployment now sitting at 5.2% – it was around 4% a few years ago.    These challenges aside, this year I’d be looking to the ‘battlefield suburbs’, where first-home buyers are set to shape up to investors. In other words, <a target="_blank" href="/news">St Marys</a> in Sydney, Adelaide’s <a target="_blank" href="/news">Semaphore</a>, as well as<a target="_blank" href="/news"> North Melbourne</a>, <a target="_blank" href="/news">Ascot Vale</a>, <a target="_blank" href="/news">Brunswick</a> and <a target="_blank" href="/news">Footscray </a>in Melbourne are set to benefit as investors compete with first timers for quality homes. Across the continent, it’s the ‘forgotten suburbs’ of inner Perth such as <a target="_blank" href="/news">Embleton </a>and <a target="_blank" href="/news">Ashfield</a> that will enjoy some growth as investors and first time buyers muscle up.   It’s fair to say that investors have been a bit late dipping their toe into the property market this cycle. Usually when the share market tanks we see a flood of investors into real estate. However this didn’t eventuate this time, it was more of a slow drip. Now investors are playing more aggressively in the $450,000 to $700,000 price brackets in many capital city markets – which makes some sense given the ongoing concerns about share market volatility.  In truth, while the battle between investors and first-home buyers will be intriguing in 2013, upgraders and downsizers will also play a part in generating more real estate transactions and as such doing their bit to force up real estate values across most price points in our major capital cities and regional towns.  It’s also fair to expect to see this year the continued growth in the values of apartments, units and townhouses in our major east coast capital cities, as well as Perth and Darwin. This is a result of growing demand for higher density housing close to excellent amenities in capital cities.  In 2012, rental returns plateaued, yet they are still extremely attractive. In Sydney, for instance, the average gross yield is almost 5% for apartments and given low rental vacancies, I really can’t see returns dropping off next year. It’s much the same in Perth (5%), Darwin (6.2%) and Brisbane (5.5%).  If you’re looking for a bit more and are prepared to do your homework this year, there are plenty of excellent inland regional centres such as <a target="_blank" href="/news">Bathurst</a>, <a target="_blank" href="/news">Orange</a> and <a target="_blank" href="/news">Wagga, </a>where astute investors stand to earn yields between 6% and 8%.  Angus Raine is the CEO <a target="_blank" href="https://www.raineandhorne.com.au/">Raine &amp; Horne</a>
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Rate cuts will deliver property price growth of up to 7% to some capital city suburbs in 2013

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The combined real estate bellwethers of appraisals and listings are indicating the Australian real estate market is set for a relatively busy selling season in 2011.
That said, listings are a touch behind spring 2010, as a consequence of a relatively cold and wet winter in many parts of Australia, interest rate uncertainty, concerns about the state of the two-speed economy in Australia and sovereign debt woes in America and parts of Europe. Throw in political instability in Canberra, and it is little wonder some vendors are taking a wait-and-see approach to a home sale.
At a micro level, it will only take one or two good results to entice home owners to put their homes on the market. So, with these factors in mind, my expectation is that the traditional selling season will start later than in 2010 and run much closer to Christmas.
However all bets are off should the Reserve Bank of Australia decide to hike up interest rates before summer. Although, many in the financial markets are starting to predict that a cut in the official cash rate, which currently sits at 4.75%, is more likely.
The good news is that no matter what is happening in the macroeconomic environment, there are still steps homeowners can take to make sure a home sells as fast as possible this spring.
If you haven’t done it yet, I’d contact your agent and to start to prepare your house for a spring sale. First impressions of your home are critical to a swift and successful sale. In fact, one of our offices recently conducted some research which showed that 40% of buyers to visit a property during a four-week campaign come during the first week. It’s absolutely critical that a house looks attractive if the best price is to be achieved.
The good news is that sprucing up your house or apartment won’t cost an arm and a leg, and there are some simple steps you can take, which include:
<ul>
<li>clearing overgrown gardens – you can do it yourself or hire a professional</li>
<li>trimming the lawns and edges</li>
<li>removing leaves from paths and verandahs</li>
<li>sprucing up the house’s exterior by washing down or repainting walls.</li>
<li>cleaning the eaves and guttering, and brushing away leaves and cobwebs</li>
<li>decluttering rooms of excess furniture</li>
<li>cleaning and tidying bathroom(s) and kitchens</li>
</ul>
There is also no point having killer views obstructed by trees and bushes. Be sure to prune trees and shrubs, while cleaning the windows and screens will help improve a home’s unique outlook, and allow in more sunshine.
Angus Raine is CEO of <a href="https://www.raineandhorne.com.au/" target="_blank" title="Raine &amp; Horne">Raine &amp; Horn</a><a href="https://www.raineandhorne.com.au/" target="_blank">e</a>
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Top seven tips for selling in spring

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With global financial markets dipping and diving on an almost daily basis, the safe haven of a quality, well-located residential property is once again proving an appealing option for investors.
However, don’t for one minute think a real estate investment is a licence to print money, and in these uncertain times, it is more important than ever to get the fundamentals right.
An investment property should tick a number of boxes for you and prospective tenants. For starters, its location is paramount. Look for investment homes that are close to shopping, schools, hospitals and recreational facilities, and if they’re in walking distance, even better. Tenants must be able to get to work as quickly as possible, so access to motorways and railway stations are other valuable features to look for when buying an investment home.
Also, if the budget allows, a newer property purchase will provide decent depreciation benefits, which is helpful when times are tough. A new home or apartment will usually (but not always) have fewer maintenance issues, which can be a great cost saving.
Likewise, investment homes in locations with traditionally low vacancy rates (which means tenants love the suburb or town) can provide a level of investment security and cash flow.
Choosing the right managing agent is also an important consideration, especially when the chips are down. In other words, you want an agent who represents your interests, but not to the detriment of the tenant. The right property manager will have a policy of conducting regular rental reviews (every six or 12 months preferably) rather than just when tenants vacate a property. This can help maximise your returns so you are assured you are receiving market rent.
As a guide, looking at the current average rent for similar properties in the area is a good way to calculate the weekly rent for your property – your managing agent can give you an up-to-date appraisal, or you can refer to websites such as <a target="_blank" title="RP Data" href="https://www.rpdata.net.au">RP Data</a>, Australian Property Monitors or <a target="_blank" title="Price Finder" href="https://www.pricefinder.com.au">PriceFinder</a>. But any rental increases you do make should be gradual, rather than a one-off spike which your tenant/s might find hard to swallow.
Angus Raine is CEO of <a target="_blank" title="Raine &amp; Horne" href="https://www.raineandhorne.com.au/">Raine &amp; Horn</a><a target="_blank" href="https://www.raineandhorne.com.au/">e</a>
 
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Angus Raine

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