Bowral townhouses on the menu for sub-$500,000 investors in Southern Highlands: HTW

The NSW Southern Highlands property market remains steady, with both buyers and sellers having more confidence due to a levelling off of interest rates in the first half of 2013, says Herron Todd White in its guide to property investments under half a million. 

“In Bowral, under $500,000 will generally limit buyers to modern townhouses generally priced between $400,000 to $450,000,” reports the valuation firm. 

HTW's review said “a savvy buyer could secure a semi-modern project home in East Bowral, with four bedrooms for between $420,000 to $450,000.” 

With the average rental rates between $400 to $500 per week, the price of a quality home in East Bowral equated to a gross yield of 5.2% to 5.7%. 

According to HTW, the Southern Tablelands (part of which includes the Southern Highlands) offers more choices and affordability to potential investors with lower price entry levels than the Southern Highlands

The city of Goulburn, with a population of around 25,000 and a steady workforce is located close to Canberra and Sydney, which has pumped up sale prices and renewed interest. 

The city is seeing investment properties being snapped up by Canberra investors. 

“The trend in recent years is people purchasing/renting in Goulburn and commuting to Canberra where a stable employment base still exists,” reported HTW.

“Depending on dwelling/land size and the quality of the home, values of modern project style dwellings in Goulburn range between $350,000 and $450,000, and generally attract rentals of $350 to $450 per week, representing a gross yield of around 5%.

“A real option in Goulburn for the $500,000 investor would be to purchase multiple residential units or townhouse/villa properties for between $150,000 and $200,000 each and rent them out for between $150 to $200 per week.”