Regional NSW suburbs top statewide list of best investor locations - Unikorn Commercial Property

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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. According 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. Undevelope
d 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
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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 Sydneys 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. 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.
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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. Tarran
ts 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. Diversifying 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 futureDespite being one of the best
performing commercial suburbs in the state,
Maitlands overall yields fell slightly 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.