Essential infrastructure, a diverse economy, youthful demographic, beautiful environment, capital growth over the last ten years comparable to the Australian average, rental yields miles ahead of capital cities, and an entry price for 3-bedroom houses of circa $300,000: frankly, property investing rarely gets better than this!
If I was to say that the above description related to a specific suburb in any capital city an instant hotspot market would be created. But as soon as the same description is attached to a regional city location, in this case Armidale in regional New South Wales, eyebrows will be raised with concern. Such is the psyche of property investors.
With a population of 25,000 people, Armidale is a city in the Northern Tablelands of New South Wales. Located approximately half way between Sydney and Brisbane, Armidale is a business hub in the New England region. It is accessible via daily services direct to Sydney by both air and rail.
The University of New England is a major employer. Built around a historic mansion it contributes to Armidale’s position as a city of culture and diversity. The university has strong links to the rural community (especially sheep), and also offers courses in technology and medicine.
In addition to agriculture and education, tourism is an important staple for Armidale’s economy. The region is full of scenic beauty and scientific interest including several World Heritage listed National Parks. The Australian Wool Fashion Awards, which showcases the use of Merino wool by fashion designers, are hosted by Armidale in March each year.
“Sydney or Melbourne, inner-city or suburbia, house or apartment, near the train station or the cafes?” These questions are typical considerations of an amateur investor. Whether we call it short-sightedness or a creature-of-habit mentality, it’s the most common cause of property investors not realising their full potential.
As for those raised eyebrows and perceived risk associated with investing in regional locations, take a close look at the gradient of the lines for median property value change. The consistent price growth of Armidale dating all the way back to 2002 shows a history of steadiness and a distinct lack of volatility which puts every single Australian capital city to shame.