Goulburn high rental yields attracting Sydney investor buyers: HTW residential
Goulburn has remained reasonably quiet over the past 12 months like most areas in New South Wales with the recent slump spooking investors out of the market, according to the latest Herron Todd White (HTW) residential report.
The valuation firm took a look at rental yields across the nation.
"In late 2016 right through 2017, we saw Goulburn boom as a popular hotspot for Sydney investors purchasing properties largely due to the affordability, future growth prospects and solid rental yields," the valuation firm said.
The report notes this is a result of low vacancy rates attributed to the police academy, correctional centre and major institutional style organisations, the ongoing talk of the high-speed rail network, the affordable median house price of $405,000 and the considerably high rental income.
For example, a reasonably new four-bedroom, two-bathroom project style home within the developing areas north of the CBD can be purchased from $475,000 up to $675,000 in the current market with rental returns ranging from $400 to $500 per week.
"Moreover, we are seeing a duplex market emerging in the new larger subdivisions attracting Sydney buyers due to the high rental yields of approximately 4.5% to 5% for each individual semi-detached dwelling or apartment style property," the valuation firm continued.
"The older heritage style dwellings closer to the CBD start from $320,000 and return from $300 up to $500 per week for a fully renovated three-bedroom home in close proximity to the central shopping hubs and attract yields of 4% to 5%."
Investors are also drawn to the area due to the steady growth the region has seen over the past few years.
More young families and first home buyers from Canberra and the Southern Highlands are seeing Goulburn as an affordable lifestyle alternative with easy access to the Federal and Hume Highways, Canberra City and Airport, HTW said.
