Bathurst homes sold to investors ‘sight unseen’ double in 12 months, says Raine & Horne

Media release - 3 May, 2012

Bathurst a wise move for property hunters


It’s one of NSW’s many flourishing regional towns, and as a consequence, the number of Bathurst homes sold to investors sight unseen has doubled in the last twelve months, according to John Fagan, Co-Principal, Raine & Horne Bathurst.

Bathurst is a strong regional city with affordable real estate,” says Mr Fagan.

“As a result, more interstate investors from the likes of Melbourne and Sydney are buying Bathurst homes sight unseen because of the generous yields on offer.”

Mr Fagan cites the example of a 12 year old, three bedroom house in the Bathurst suburb of Kelso, built on a 700 sqm block, which is on the market for $185,000 and is set to rent for between $250 and $260 a week.

“We have an investor lined up who is very interested but who has never visited the property,” says Mr Fagan, adding that this is typical of investor sales completed by Raine & Horne Bathurst in 2012.

“Apart from healthy investment yields, the majority of interstate investors are also attracted by Bathurst’s steady population growth, good climate and an excellent location that is just three hours by car to Sydney.”

While Mr Fagan contends that the rise of the internet has contributed to an increase in the number of sight unseen real estate sales, he warns investors to conduct plenty of research before taking the plunge into a Bathurst investment property.

“Before buying an investment property sight unseen, obtain pest and building inspections, and check with local property managers to confirm the rental value and ensure the return estimates aren’t overinflated,” says Mr Fagan, who also urges interstate or intrastate investors to check with the local police on the suitability of a neighbourhood prior to making a purchase.

“The council can also help investors with the demographics of the city.”

Furthermore, Mr Fagan says there is evidence that some investors are opting for newer properties in Bathurst to take advantage of ongoing tax breaks.

“Investors are buying near-new three bedroom homes for the depreciation benefits,” he confirms.

“These homes are selling for $330,000 to $350,000, and renting for between $350 and $400 a week.”

Shrewd investors are also well aware that with an unemployment rate of just 4.8%[1] (the national average is 5.2%[2]), Bathurst offers excellent job opportunities, which in turn supports long term property values and rents.

“Apart from the Cadia Mine in Orange, Bathurst itself has plenty of industry which is fuelling employment opportunities for white and blue collar workers,” says Mr Fagan.

Major employers in Bathurst include the Department of Education and Training, NSW State Forests, and the Central Mapping Authority, while Country Energy, food manufacturer Simplot, Mars Petfoods and Downer EDI’s locomotive workshops are also located in the town.

Mr Fagan adds, “We also have a strong education sector headed by Charles Sturt University and four private schools – The Scots School, St Stanislaus College, All Saints College, and MacKillop College – plus two state high schools.

“Combined, these employers provide excellent job opportunities that are attracting more workers to Bathurst, and this ultimately underpins the local rental market.”

Bathurst in brief

Population Estimate (30 June 2011)

40,187*

Population Forecast (2031)

51,482

Registered businesses

3,240

Regional Labour Force

53,000

Unemployment

4.8%

Gross Regional Product

$4503 billion (2009)

*Note: this figure relies on 2006 census data. 2011 census data will be released later this year and a final estimated resident population for 2011 will then be available.

 

-ENDS-

 

For further media information contact:

Angus Raine, CEO Raine & Horne on (02) 9258 5422 or 0409 920 697

John Fagan, Co-Principal, Raine & Horne Bathurst on 0414 403 340

Andrew Harrington, National Marketing & Communications Co-ordinator on 02 9258 5400

 


[1] Bathurst Regional Council, May 2012

[2] Australian Bureau of Statistics 6202.0 - Labour Force, Australia, Mar 2012