Tamworth and Leeton have been flagged as the best NSW markets for property investors seeking cheap real estate that will grow in value and deliver higher rental yields.
A report by property trends forecaster Hotspotting.com.au showed the towns were among the locations ranked as the country’s “top 5 cheapies with prospects”.
House prices in some Tamworth suburbs, including South Tamworth and West Tamworth were below $350,000, and sales volumes were increasing, suggesting coming price rises.
Infrastructure projects such as the intermodal freight hub roll out, along with strong appeal as an affordable “lifestyle” destination also bode well for future price growth, the report revealed.
“The Tamworth property market is strong, with low vacancies and the consistent delivery of high rental yields continuing to attract investors,” the report said.
Another attractive feature of the market was the mixed economy, which meant perennial tenant and buyer demand.
“The economy is solid, underpinned by agriculture, mining, tourism, aviation and healthcare,” Hotspotting said.
Leeton, a prominent agricultural centre in the Riverina region, had among the lowest vacancy rates in the country and a “solid capital growth rate”. Typical house prices were $300,000.
Hotspotting analyst Terry Ryder said Tamworth and Leeton, along with other cheaper markets such as Port Augusta and Murray Bridge in SA and Rockhampton in Queensland, had “solid credentials” for future growth.
“Property buyers are besieged with stories at the moment about the lack of affordability of Australian real estate, but there are plenty of options for investors to buy cheap real estate in locations with solid credentials for future growth,” Mr Ryder said.
“They’re not that hard to find. Regional Australia is full of good growth prospects and solid properties in the $200,000s or $300,000s.
“Regional areas outperformed the big cities in 2020 and 2021 and the best regional centres have had higher growth than their capital cities in the past five years.”
Mr Ryder said the five markets ranked as the top “cheapies with prospects” each had something “special” that elevated them above the pack.
“That could be new industries that will add to the strength of the local economy or for instance, expected economic benefits from new infrastructure projects,” he said.
“The best places to focus on will have a bright future, good infrastructure and a growing population.”