By SONJA KOREMANS
RENTS in Australian capital cities are rising at their lowest pace on record, while the Southern Downs is quietly eclipsing them as investors’ new golden child.
As the hype around Sydney’s whopping property prices continues, investors are focusing on new frontiers to sink their funds into – and new data shows Warwick and Stanthorpe are in their sights.
Capital city rents rose an average of just 1.5 per cent over the year, according to CoreLogic RP Data’s May rental index.
But in stark contrast, rental returns grew almost six per cent in Warwick during the year and 5.5 per cent in Stanthorpe during the same period, according to CoreLogic – Australia’s largest property analyst.
Southern Downs Realty’s Brent Bowles said out-of-town investors were swooping on cheap houses to rent out, while retirees and families from Brisbane and the Gold Coast were also key home buyers.
“Unlike capital cities, Warwick and Stanthorpe are among areas generally overlooked by media and analysts – and that means the best opportunities to buy affordably while getting solid rental yields,“ Mr Bowles said.
“Homes within six blocks of the CBDs are showing the greatest demand – people want to be able to walk or be close to facilities, particularly with a growing retiree population.
He said a low rental vacancy rate of 1.7 per cent for Warwick, combined with cheap house prices presented investors with brilliant opportunities.
“A house at $180,000 will generally bring in about $220 a week or more,“ Mr Bowles said.
“You can come to Warwick or Stanthorpe and buy three places for the price of one in Brisbane and get a better return.“
CoreLogic data also showed national average rental yield for property investors fell to just 3.7 per cent in the quarter, dragged down in particular by Melbourne (3.3 per cent) and Sydney (3.6 per cent).
Anthony and Adele Blissett recently moved from the Gold Coast to Warwick with affordability and investor opportunities in mind.
Adele Blissett said the couple had looked for some time before deciding to settle in the region.
“We chose Warwick because it has all the facilities of a city but feels like a country town, plus property data indicated it was a growth area for sales and rent,” Ms Blissett said.
State Opposition Leader and Local Member Lawrence Springborg said the Southern Downs was ripe for investors and home hunters.
“There are the obvious affordability and lifestyle factors and also the future outlook of improving education, business and health facilities and the NBN network coverage,“ Mr Springborg said.
“Technology advancements are bringing great benefits for people who are looking to semi-retire and start up a new business from home on the Southern Downs without having to go back and forth to major cities.
“Just recently I met a man running an international IT business very successfully from his home in Inglewood – those are the sort of opportunities that will be attractive to investors and families.“
