Media release - 20^th February 2012

Shoalhaven welcomes back holiday home buyers and investors

Shoalhaven weekenders between $1.15 to $1.2 million are back in the sights of buyers
Robust rental yields of 5% set to attract investors to the Shoalhaven
Strong tenant demand, coupled with jobs growth and a shortage of rental homes are set to underpin yields for median Shoalhaven homes

Shoalhaven holiday homes and weekenders are back in vogue with buyers this summer according to Craig Hadfield, Principal, Raine & Horne Culburra Beach.

“We’ve seen the return of the holiday market, because properties in the Shoalhaven, which is about two and half hours south of Sydney, represent excellent value,” says Mr Hadfield.

“There has been plenty of activity in the market around $1.15 million to $1.2 million, which buys a charming, absolute beachfront house with up to four bedrooms.”

According to Mr Hadfield, who is also the principal of Raine & Horne Callala Bay, around 90% of local buyers are from Sydney, while there have been a few homes recently sold to regional buyers from the likes of Goulburn.

That said the majority of activity is around the mid $300,000s, which can secure a three bedroom, two bathroom home in Culburra Beach, while Mr Hadfield says approximately 30% of buyers are investors.

“For a home worth $350,000, it’s possible to negotiate a weekly rent of between $360 and $380, which is a major attraction for investors.

Investors should also note that demand for rentals is robust as the Shoalhaven is flush with job opportunities created by a buoyant local economy and large employers such as the nearby naval base HMAS Albatross and the Manildra ethanol plant at Nowra. There is also a burgeoning services sector led by accounting and legal firms.

At the same time, Mr Hadfield says a shortage of land for development has resulted in the Shoalhaven becoming increasingly reliant on investors purchasing homes, which they release into the rental market.

“The trouble is that over the last few years, we’ve had an absence of investors, which has left the region short on rental homes, which is contributing to stronger yields, which is great news for existing as well as aspiring landlords.”

Apart from excellent beaches, Mr Hadfield says infrastructure improvements such as the Gerringong Bypass and a link road to Canberra have also contributed to the Shoalhaven’s appeal with Sydney investors and those considering a sea change.

“The link road to Canberra, for example, will slash the commute from Culburra Beach by 45 minutes, while the bypass will include a dual carriage way, which is set to speed up the trip significantly between our region and Sydney.

-ENDS-

For further media information contact:

Angus Raine, CEO Raine & Horne on 0409 920 697

Kit Bashford, National Marketing & Communications Manager on 02 9258 5400