Investment in Tamworth strong from both local and non-locals: HTW

Local and non-local investors are strong in Tamworth, according to Herron Todd White’s latest August report.

The property investment firm says that local investors tend to pick properties that are in a good location and have average rent return.

“The Tamworth region has a strong investment sector with both local and non-local investors taking part.

“The trend for local investors is to buy a safe property (good location, average rent return and lower risk).

“On the other side we see non-local investors being more risky, with a focus on higher rent returns which tends to be properties in less desirable areas with returns of up to 8% gross but less capital gain,” the report stated.

Non-local investors are starting to invest more in new subdivisions Herron Todd White advises.

“There has also been a notable increase in non-local investors investing in new subdivisions that are entirely aimed at outside investors.

“These sub-divisions become a less desirable location due to the lack of owner-occupiers and so far have appeared to enjoy little in the may of increased market value.

“Local investors operate within a large price range depending on their financial capacity with investments occurring from around $200,000 all the way to $600,000.

“Non-local investors are a bit more constrained with their investments with the lower bracket being around $150,000 (parts of West Tamworth) up to around $500,000.

“Each price point represents a different goal for the property with the lower end focusing on higher rental yields and the upper end focused on capital growth,” the report advised.

Tamworth’s continued expansion means that investors will now have to consider capital gains when purchasing properties Herron Todd White says.

“With Tamworth continuing to expand and doing quite well, the strategy of medium price point with average rental return but opportunity for capital gains seems to be the better strategy of the two.

“The reason for this is that with an average return of 5% to 6% gross on these properties, the return is still better than capital cities and it provides less risk than higher yield properties.

“Over the past 12 months we have seen an increase in investor activity within the Oxley Vale area as there is opportunity to buy both new and established homes within an expanding suburb that is not too expensive.

“Nice established homes can be purchased for $300,000 and enjoy a return of roughly 5.5% gross.

“The continual expansion of Tamworth makes investors a vital part in allowing it to grow, as more people come to town and require accommodation.

“At this time there has been minimal to no impact on first home owners from investors, due to the affordability of Tamworth,” the report commented.

A three bedroom house at 20 Robyn Street, Tamworth (above) has been listed for $275,000.

Built in 1950 it was last sold in 2013 for $226,500.

Another three bedroom house at 6 Wentworth Place, Tamworth (below) has been listed for $279,000.