What type of properties offer the highest rental yields in Tamworth? HTW residential

For those chasing income rather than growth, Tamworth offers a range of options all with attractive returns, according to the latest Herron Todd White (HTW) residential report. 

The valuation firm took a look at rental yields across the nation. 

"Whether it be single residential or a unit block, there is something for all investors. Tamworth sees all types of investors and no particular strategy (growth versus yield) dominates," the valuation firm said. 

"To begin with, let’s take a look at single residential investments. The average return throughout Tamworth sits around the 5% mark (say 4.5% to 6%) for most single residential dwellings.

"Now, while this is certainly a better yield than that found in the larger cities, it is still not amazing. The area we find attracts yield investors is that of West Tamworth, in particular Coledale." 

This area has a lot of housing commission and is not a desirable location for owner occupiers, however with sub-$200,000 buy in and returns north of 8%, it is certainly attractive for investors.

A recent sale of 47 Cossa Street (pictured below) at $130,000 showed a gross return of 9.6% with a tenant in place at $240 per week.

"If single residential or properties in undesirable locations isn’t your cup of tea and you prefer multiple-occupancy properties than do not stress, Tamworth has that covered as well," the valuation firm added. 

Duplexes and triplexes typically see gross returns of 6% to 8% depending on the location, with those in the more desirable areas of East and North Tamworth falling towards the lower end.

The report suggests the benefit of a multiple occupancy property is less risk with less chance of all units being empty as well as higher capital growth than the properties mentioned previously.

22 Charles Coxen Close, Oxley Vale (pictured below), recently sold for $429,000 with an assessed weekly return of $560 or an annual gross return of 6.8%.

"For the last style of investment property we check out unit blocks (four or more units on one title)," the valuation firm added. 

While these properties are bought and sold less frequently, they certainly have a place within the market.

The returns for unit blocks are not dissimilar to those of duplexes or triplexes, with investors expecting 6% plus returns.

100-102 Belmore Street, West Tamworth (pictured below) which consists of a four unit building and a separate three-bedroom dwelling sold for $1.090 million earlier this year.

"With a gross return of $68,120 or 6.2% and the potential to subdivide or build more units, this was an attractive buy for any investor with the cash," the valuation firm commented.