Residential property investment remains an incredibly popular option for people looking to safeguard their financial futures. From small-scale investors from overseas buyers looking to keep their money somewhere secure, to locals skittish regarding stocks but looking for a decent return, many have started entering the Hunter Valley market in increasing numbers.
However, before buying, though, investors need to do their own independent research into an area to determine if it is right for their investment goals.
There are parts of some suburbs that are expected to perform better than others, so caution needs to be exercised to maximize growth potential.
What to Look for in the Area
Apart from infrastructure, these are a few other things to take into consideration when you’re exploring a location:
- Proximity to an important city
- Strong rental demand and low vacancy rates
- Under-supply of brand new housing
- Strong population expansion
- Diverse economy
Investing in real estate is challenging and getting it right can take a lot of research.
Hunter Valley Real Estate Hot Spots
Here are four great towns that are supplying real estate investors good value in Hunter Valley.
Cessnock is an “ideal location” for mining families and investors.
“In 2006, population growth was predicted at 0.5 percent per year, but this has been increased to 1.95 percent in 2011, an indication that this area is already expanding beyond expectations,” said Margaret Lomas of Property investment professionals, Australia.
Faced with a decline in employment due to changes in the coal industry, the Cessnock local government is focused on the long-term, sustainable businesses for the exposure of the area to reduce volatile industry.
Commercial infrastructure investments, particularly transportation links to nearby employment hubs such as Newcastle, are hoped to attract organizations and residents to Cessnock.
Tourism is another big industry for Cessnock, with the town estimating that the particular Hunter Region’s wine beverages tourism industry might be priced at $521 million, with subsequent purchase and spending worth around $227 million.
Jurd Real Estate principal Alan Jurd said in November that the downturn in the mining sector had “taken the punch off [the property market] a bit.” He now says that the impacts of the assets downturn on the rental market have begun to channel through to the investment market.
By, now that the mining business has proceeded onward, as have work groups from the Hunter Expressway, vacancies and openings are up. The area is a good investment for investors with long-term expectations.
The median price of units in Newcastle is actually closing in upon Melbourne and Perth, having already overtaken the actual median unit price in Adelaide, Canberra and also Hobart.
Low rates and the city’s revitalisation are among the key drivers of higher prices inside the Newcastle city area.
Located at the beginning of the Hunter Expressway, Huntlee is only 50 minutes from Newcastle, 20 minutes north of Cessnock and 27 minutes from Maitland.
Nestled in the heart of the Hunter, it is also ideally located for visiting the local Hunter wineries, restaurants, spas and golf courses. Huntlee is a new town sitting right in the middle of everything.
At completion, Huntlee will feature 7500 dwellings (nearly 20,000 people) along with a 200ha Town Centre which will generate over 3000 jobs within the community.
Properties in Huntlee have a high tendency to produce excellent rental yields due to their quality design and construction.