Local demand softens in sub-$300,000 Horsham investor market: HTW

Local demand softens in sub-$300,000 Horsham investor market: HTW
Local demand softens in sub-$300,000 Horsham investor market: HTW

Investors represent approximately 30% of the market for Horsham residential real estate according to Herron Todd White's November report.

The HTW month in review suggests that the recent changes to lending practices by major banks has seen the level of interest and demand in this sector of the market decline over recent months.

"Investors in the Horsham market tend to be mainly local buyers who live and work within the region.

"Typically, the first home buyer and investor market segments are much the same with the majority of investment properties in Horsham in the sub $300,000 price range."

The report added that recent changes to LVR’s and rental return requirements have not only knocked some investors out of the market but softened the demand within this market segment, caused largely by the increased equity and servicing components required for loans.

"Coupled with the current dry season for the local farming industry the value of housing in this sub $300,000 bracket is expected to stabilize after many months of positive growth.

"Units and dwellings that appeal to investors in the Horsham market typically comprise well renovated or near new accommodation that requires minimal maintenance and generally returns a 5% to 7.5% gross return." 

Joel Robinson

Joel Robinson

Joel Robinson is a property journalist based in Sydney. Joel has been writing about the residential real estate market for the last five years, specializing in market trends and the economics and finance behind buying and selling real estate.

Tags: 
Melbourne Investment Property

Comments

Be the first one to comment on this article
What would you like to say about this project?