Tamworth seeing influx of first time buyers from Sydney
Tamworth is seeing a lot of first time buyers in both the owner-occupier and investor sectors in comparison to other cities, according to HTW’s Month in Review: March 2017.
The valuation firm says the $250,000 to $350,000 range is the most active for these buyers, with many choosing to buy within established suburbs and renovating older dwellings.
Outside of this range the buyers are choosing to build rather then buy.
“The incentives offered (ie. no stamp duty, $10,000 grant) mean they will save money when compared to buying a house of a similar calibre,” the report says.
“There is strong evidence of young people buying in Tamworth, particularly building homes, who come from Sydney and as they cannot afford to buy there.”
HTW advises buyers to choose their location very carefully.
“While prices in several suburbs can be very enticing for young buyers, ie. less then $200,000, these areas experience little to no capital growth and are not a good long term investment,” it says.
“Parts of west Tamworth and south Tamworth should be avoided as they have a strong housing commission population and historically experience very little growth when compared to non housing commission areas within the same suburb.
“The mistakes we are seeing include going too big too soon, with many first time buyers who choose to build trying to build their ‘forever home’ and placing themselves in a situation where they struggle with mortgage affordability.
“With the affordable options of Tamworth it is best to research and remember that this house will most likely not be a forever home for them, so spending $700,000 on a first home in the best suburb is not needed.”
A five bedroom house at 357 Armidale Road, Tamworth (above) has been listed for between $330,000 to $350,000.
Similarly a three bedroom house at 14 Aberdeen Street, Tamworth (below) has been listed for $270,000.
