THE Hunter Valley has emerged as one of Australia’s hottest places to invest in property thanks to the international resources boom.
A list released yesterday of the nation’s 10 best investment locations included the Hunter Valley coalfields, Glen Innes in the New England district and North Western NSW towns like Moree and Gunnedah.
Property researcher Terry Ryder said he chose the top 10 regions based on their low prices, strong rental returns and potential for growth.
“There has been so much media attention on affordability issues but it tends to focus almost exclusively on the major cities,” he said.
“That ignores all the good prospects in some of our regional centres.”
Decent four-bedroom homes in Muswellbrook, on the doorstep of the Hunter Valley’s coal mines and horse studs, were advertised online yesterday for as little as $198,000.
But real estate experts predict those prices will climb dramatically with the opening of a billion-dollar coal mine and expansion of transport and energy infrastructure.
Approved in 2007, the Mangoola coal mine is expected to see more than 1500 miners and their families move to the area, many of whom will need rental accommodation.
Muswellbrook real estate agent Phil Lawler said his agency took four deposits on homes in town yesterday.
“It’s a long, long time since I have seen such urgency in the marketplace,” he said.
“Rents are starting to increase dramatically, and that will start to turn investors’ heads.
“For $250,000 to $350,000 you can get a really attractive property up here that can return up to $600 in rent a week if furnished.”
Real Estate Institute of NSW president Wayne Stewart said the rural lifestyle on offer in the region added to its allure.
“Some of those areas are only an hour from the ocean and that is part of it as well,” he said.
According to the report, Glen Innes made it onto the list for its location at the junction of the New England and Gwydir highways, the quality of homes on offer and plans for new development in and around the town.
Mr Ryder, who runs the hotspotting.com.au website, said a planned inland rail link and mining expansion meant real estate in North Western NSW was also likely to boom.
2010 is fast approaching, and we have already helped a number of investors map out their plan for next year.
If you are looking to plan your property wealth for the next 20 years, it’s important to work what you want to achieve rather than impulse buy. Remember, property is a long term strategy requiring long term plans, and for a lot of us, it’s the basis of our family’s wealth.
So where do you start?
Here are 5 quick steps to get you started in planning your property investment for 2010:
1. Start with a clear and definite objective – When, why, who for, what do you want to achieve?
2. Have a sound property & financial strategy – What type of property, what price, which lender, how much cash do I need?
3. Take Action – Once you know your market, start shopping for wholesale prices. Find properties that are not on the market and work out how you can buy low, and sell high. Start researching sales prices, or get some help like a Buyer’s Agent.
4. Follow Through with the plan – Look at 100 properties. Your favourite may be No.7, or it may be No. 85. The more you compare, the more you get the feel for what is right for you.
5. Create a supporting environment around you – Build your team of advisors and likeminded supporters. Talk to people in the know, research the areas and use reputable property research companies to gather the information.
Sound like a lot of work? Buying at wholesale prices takes effort, yet there are shortcuts and ways to save you time and eliminate stress.
Plan Assist regularly helps investors with all areas of property purchasing, from planning to completion. It’s our job to coach you through and keep you on track. Call our Acquisition Team today on 02 9449 2333 for a no obligation chat about planning for 2010.