More and more people are choosing to make a residential property investment in regional areas, such as Orange in NSW. It is becoming increasingly attractive for investors to stake a claim in areas like this to achieve strong rental returns and capital growth.
Let’s review why you should consider making a regional investment to gain an advantage in the property market.
Strong Rental Yields
According to a recent Your Investment Property report, investors who are looking for robust rental returns can yield an impressive rental return of as much as 4.43% as of the end of August 2024, with the median rent for houses in the region at about $540 per week.
Units also perform well, with a median rent of about $430 per week generating a rental yield of about 5.11%.
The strong demand indicated by these figures points to a robust rental market in Orange, where consistent income streams provide promising returns for investors. The area is seeing a large influx of people due to increased demand for lifestyle changes and affordability. As a result, rental demand is expected to remain high for the foreseeable future.
Capital Growth Potential
Aside from excellent rental returns, capital growth is another compelling reason to invest in Orange. Positive price trends in regional NSW show property prices rising by an average of 3.9% year-on-year as of August 2024.
Although capital growth rates do fluctuate, there is a general sentiment of high investor confidence in the area, thanks to economic stability, access to key services such as education and healthcare, and the relative proximity to Sydney, which is only three hours away.
The expectation is that towns like Orange, among others in regional NSW, will continue to see moderate growth over the foreseeable future, with housing prices expected to rise by similar margins to what was seen over the past year.
Lifestyle Benefits
One of the major attractions of regions like Orange is the excellent quality of life they offer, as well as the relative affordability when compared to housing options in nearby Sydney.
The scenic landscapes, fantastic wineries, vibrant local culture and access to fresh produce from nearby farming communities make for an appealing lifestyle for families and professionals alike.
Plenty of job opportunities are available due to the expanding population, while remote work is also made possible by strong connectivity.
As more Australians seek lifestyle-driven property choices following the outbreak of the COVID-19 pandemic in 2020, it’s a fairly sure bet that Orange’s unique blend of regional charm and urban conveniences will continue to provide a property advantage for investors looking to attract long-term tenants and grow their capital wealth.
If you want to get expert insights and advice on whether you should make a regional investment into a town like Orange in NSW, then contact us at WPG Advisory. We are the experts at providing property investment advisory services.