NSW's Highlands and Tablelands offer good capital growth in $500,000 property market: HTW

NSW's Southern Highlands and Tablelands offer a range of choices to investors and FHBs in the under or up to $500,000 property market, according to valuation firm Herron Todd White's July residential market review.

Southern Highlands

The market in the Southern Highlands for $500,000 is limited generally to new units in the townships of Bowral and Moss Vale and 10 to 15-year-old houses in the established subdivisions on the periphery of town.

Around the $500,000 mark will buy a new two- or three-bedroom unit in the township of Bowral or Moss Vale or a ten to 15-year-old project home needing some work in East Bowral or Moss Vale. Rentals are in the $500 to $550 per week range providing a good return. In Mittagong, a smaller project style home can be purchased for $500,000 in newer subdivisions on the outskirts of the township.

Property Observer found a three-bedroom house at 27 Hoskins Street, Moss Vale, NSW 2577 (above) for $427,000, according to RP Data.

The Southern Tablelands still offers choice and affordability to potential investors with lower price entry levels than the Highlands.

Depending on the dwelling, land size and quality of the home, between $475,000 and $500,000 will buy a new or modern home that will rent for between $470 and $500 per week. For capital growth, an investor could purchase an older style dwelling for between $350,000 and $400,000 and renovate.

"We have noticed over the past 12 months that out of town investors attracted to the region are purchasing multiple residential units or townhouse villa properties for between $200,000 and $250,000. These rent for between $220 and $300 per week providing a premium return when compared to traditional capital city rental returns," says the HTW report.

"This market continues to show good capital growth."

Rental levels in Goulburn are steady. Compared to 2015, the market has generally seen an uptick of around 15% in the Highlands and around 10% in the Tablelands.

"From our suggestions and focus in July 2015, we would consider reinvesting into these properties. Value and rental markets have improved in our region."