Perfect time to invest in Northern Rivers property
THE NORTHERN Rivers rental market is tighter than Sydney making it the perfect location for investors to get better returns on their money than from superannuation or banks.
Only 1.4% of residential rentals across the region were vacant in April according to the figures released today by the Real Estate Institute of NSW.
Sydney, on the other hand, had a residential vacancy rate of 1.7% in April, while the easiest region in NSW to obtain a rental property was South Eastern NSW with 6.1% of rentals available.
Even the fellow university region of New England had 3.6% of its rental properties vacant in April.
Wal Murray Lismore principal Peter Brown said the investment market was steady across the region.
"At the moment interest rates at the banks are very minimal, so interest rates from a property investment are a lot better and you get a tax relief," he said.
"We've sold quite a few blocks of units recently to investors and we find a lot of people are putting their super into units to get better returns.
"The rental market has held well around here so in percentage terms they are probably getting about 6% on their investment."
Ray White Lismore director Chris Harley said with interest rates predicted to fall further, people were investing in property.
"Our rental list is next to nothing..we've seen it before in the last 25-years, but it wasn't as low as it is at the moment," he said.
"With cash deposit rates at what they are, we are seeing a push back to property.
"Our stock is at very low levels because turnover has increased in the past 18 months.
"We saw this coming late last year that we got to a point consistently every month where we are selling more than we are listing."
Lismore Property Managers licensee Rachael Jenkins said her business, which specialises in rentals had consistently a 1% vacancy rate or less.
"With the university and the hospital that are here we always have high demand for our rentals, but with the hospital upgrade and roadworks and the fact that workers involved have moved into town, that vacancy rate is lower than usual," she said.
"From the moment that we opened on the Northern Rivers three-years ago we said with the vacancy rates we have got here and the rental returns this was a fantastic place to invest."