Capital growth prospects in regional towns

Cities such as Tamworth and Wagga Wagga (NSW), Toowoomba (QLD), Bunbury (WA) and Port Augusta (SA) were picked by Mr Raine as areas with long-term capital growth potential for investors.

Raine&Horne Tamworth principal Bryan Bolitho said in Tamworth, investor enquiries are constant for houses between $200,000 and $300,000, which will deliver a yield of about 5.5 per cent and are seeing vacancy rates below two per cent.

“In Tamworth, it’s possible to buy an older style, three-bedroom home, with a single bathroom and garage for around $250,000, so your money can go much further in a regional town like ours,” he said.

Mr Raine offers advice for investors looking to buy in regional towns – most importantly, to look for towns with a diverse economy. “Look for towns that have viable, growing economies, while predicted rises in population and employment are key, as these bode well for long-term real estate growth,” he said.

“A diversified economy is also important, as a region that supports a variety of industries is better placed to withstand a downturn in one sector.

“Features that attract renters, like access to public transport, major roads, hospitals, schools, universities and jobs in our major cities are also a plus when looking for a rental property in regional towns.”