Major acquisition for Raine & Horne Wagga Wagga
Media release - 11th July, 2014
- Leading local property firm, Raine & Horne Wagga Wagga, has ramped up its business with the acquisition of a major competitor, Elders Wagga Wagga
- The acquisition coincides with an investor driven spike in market activity, with buyer enquiries for Wagga Wagga properties 20% stronger than in winter 2013
- Investors from Sydney, Melbourne, Canberra, Newcastle and Wollongong leading the charge for sub-$300,000 homes in Wagga Wagga
Raine & Horne Wagga Wagga has doubled the size of its business, with the acquisition of major competitor, Elders Wagga Wagga.
The acquisition, which took effect on 1 July, 2014, will enable Raine & Horne Wagga Wagga to more than triple the size of its property management business, with five extra staff members also joining the team.
“This transaction will also strengthen the depth and expertise of our sales team, with an extra four agents set to join us,” says Grant Harris, Director, Raine & Horne Wagga Wagga.
“This purchase will also push Raine & Horne into the top three real estate firms in Wagga Wagga, however a bigger team will not compromise our dedication to delivering personalised customer service to our property owners, buyers and tenants.”
As part of the Raine & Horne Wagga Wagga expansion, sales agent Amanda Tilyard, who has 16 years of local experience, will now be part of the team, as will well-known local identity Mathew Longmore, who is an active member of South Wagga Apex and the Wagga Wagga Country Club.
The firm will also bolster its expertise in the small acreage and village lifestyle property sectors, with the appointment of Errol Sutherland.
The market timing of the acquisition couldn’t be better, according to Mr Harris, with more yield-hungry investors from Sydney, Newcastle, Wollongong, Canberra and Melbourne jostling with first home buyers for Wagga’s affordable sub-$300,000 entry-level properties.
“Wagga felt the impact of the Global Financial Crisis like many other major regional hubs, but it’s starting to turn the corner on the back of lower interest rates and improved consumer confidence, a fact that savvy investors have recognised,” says Mr Harris.
According to Mr Harris, total buyer enquiries are up by 20% compared to winter 2013, while investors represent about 30% of total buyer activity.
“In June 2013, investors accounted for only 15% of all real estate activity in Wagga Wagga,” says Mr Harris.
“More investor activity can be attributed to healthy yields of between 5.5 and 6%, and the prospect of capital growth as confidence continues to grow,” says Mr Harris.
To illustrate, a recently-listed two bedroom, one bathroom house at 1/1 Honeysuckle Place, Lake Albert, a suburb of Wagga Wagga, quickly attracted the attention of investors.
“This property is on the market for sale at $249,000 and should rent for about $280 a week,” says Mr Harris.
Long-term, Mr Harris is convinced that the strength of the Wagga Wagga economy and its growing population will underpin real estate prices.
“Economic diversity is the key to the success of regional towns and Wagga Wagga has this commodity in spades,” says Mr Harris.
“Wagga Wagga is the service hub for the Riverina and provides the retail and hospitality options you’d expect to find in the capital cities such as Sydney and Melbourne.
Health is another major employer, led by the Wagga Base Hospital, which recently underwent a $282 million expansion and redevelopment, while a number of retirement villages, including the Grange, are also at different stages of development.
“Health is well catered for in Wagga Wagga, which makes sense given our ageing population,” adds Mr Harris.
For further media information contact:
Grant Harris, Director, Raine & Horne Wagga Wagga on 0438 258 321
Andrew Harrington, National Marketing & Communications Coordinator on 02 9258 5400