Regional NSW suburbs top statewide list of best investor

1
Regional NSW suburbs top statewide list of best
investor locations Investors in NSW looking to
grow their wealth despite the ongoing inflation
stressors, are turning to regional areas with a
positive cashflow. Positive cashflow suburbs
generally have higher yields and returns for
investors across all types of properties. Accordi
ng to Unikorn Commercial Property founder and
buyers agent Helen Tarrant, buyers should turn
to NSW suburbs such as Wagga Wagga, Albury, and
Maitland for a successful commercial
venture. Suburbs that ranked highly on the list
had high yields and high returns on investment
for buyers. Undeveloped or immature holdings
could hold strong potential in regional areas. Ms
Tarrant said she prioritised suburbs across NSW
with a higher commercial yield where there is
more cash coming into the business than going out
enabling sustainable long-term growth for
investors. Wagga Wagga is an incredibly stable
town to place a commercial investment with a 6.5
per cent to seven per cent yield. Its got a
military base and is a transit hub for many out
of town investments, Ms Tarrant said. This
high yield actually outperforms Sydney youd
have to look towards Newcastle or the Northern
beaches for five or six per cent yields many of
the office and retail spaces in the Sydney CBD
have high vacancy rates. MORE Vaucluse
candidate sells in Redfern to move east Waterloo
dump with no loo in desperate need of love AFL
greats beachside home for sale Wagga Wagga is
currently experiencing a 6.5 to seven per cent
yield on commercial investments, outperforming
many areas of Sydney's CBD. Albury was considered
an economic bubble for the commercial property
investor, as one of the states largest regional
towns attracted a high number of health
professionals. High profile commercial trades
like Harris Markets and SuperCheap Auto had also
set-up shop in Albury to cater to the growing
population and occupy a shrinking available land
space.
2
A lot of commercial investors are out there
chasing the magic seven per cent yield, but its
only really possible in regional towns with small
populations. Places like Broken Hill that
receive eight per cent yields are the outlier,
not the norm. Albury is considered an economic
bubble for commercial investors. While Tarrant
herself started small, she used the equity in her
existing portfolio to purchase more properties,
renovate and refurbish them to add values in
order to make the most of her investment. Tarrant
s own portfolio now consists of 80 per cent
office and retail space, with the remaining 20
per cent invested in industrial spaces. Its not
about whether you should buy it today versus
tomorrow or next month. Its actually about
where you want to buy and the kind of return you
want. Ms Tarrant advises commercial investors to
diversify their portfolios and have property in
both regional and metropolitan areas. Diversifyin
g your commercial property portfolio could mean
having a property in regional and in
metropolitan areas. It might also mean buying
retail, office space and even a warehouse. Once
you have the right mix, they balance off each
other. You can leverage each other over the
years to come and continuously get cash flow and
growth and then you can continue refinancing
pulling out the equity to do more deals in the
future. Despite being one of the best performing
commercial suburbs in the state, Maitland's
overall yields fell slighly in 2022. Experiencing
the highest growth of any region during the
pandemic, Maitland fell slightly from seven per
cent to six per cent this year. The mining and
defence industries have driven production in this
area, with returns going down as commercial
buying prices went up. Ms Tarrant believes more
big brands should invest in Maitland in order to
avoid large contractions in the commercial
market.