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- This NSW Regional Town Is Growing Steadily Year On Year
This NSW Regional Town Is Growing Steadily Year On Year
South Grafton has the potential of great capital growth despite the 2022 floods. There are an abundant amount of opportunities to purchase investment-grade properties for under $450,000.
Finding Investment Suburbs For Under 450K
South Grafton has the potential of great capital growth despite falling in a flood prone area! There are an abundant amount of opportunities to purchase investment-grade properties for under $450,000.
Suburb Details:
Suburb | State | Postcode |
|---|---|---|
South Grafton | New South Wales | 2460 |
South Grafton is another suburb with multiple investment opportunities under $450,000 within regional NSW. While investors are focusing on regional Queensland this suburb is having strong year-on-year growth with great potential to continue rising. This suburb is in its ideal purchasing window and will have strong short term capital growth in the next 1-3 years. There are great opportunities to purchase lowest brick homes for under $450k that will require little maintenance over the years. Property prices over the last 2 years have risen by more than 20% as per SQM research and with positive trends in data those prices will continue to increase.
Many Investment Properties Available Still Under 450K
Key Data Metrics
Metric | Actual | Trending |
|---|---|---|
Days On Market | 58 | Trending Down |
Stock On Market | 1.97% | Flat |
Vacancy Rate | 0.24% | Flat |
Current Population | 6,343 | - |
Online Interest | 78 | Trending Up |
Vendor Discounting | -6% | Flat |
Proportion Of Renters | 31% | Flat |
Location & Infrastructure
South Grafton is situated in New South Wales and lies along the banks of the Clarence River. It is connected to major transportation routes such as the Pacific Highway, facilitating easy access to nearby towns and cities. The area features essential amenities including schools, healthcare facilities, shopping centres, and recreational spaces, contributing to its liveability. Main amenities such as Coles, Bunning and South Grafton shopping centre will supply the local with the essential needs. Grafton Bridge will also provides access to Grafton Shopping World which contains other major retailers like BigW, Woolies, Target etc. South Grafton has multiple schools in the area including private schools meaning that residents have an abundance in choice all within a small driveable distance. Grafton’s major hospital is a mere 7 minute drive from South Grafton making it extremely accessibly in a need of emergency. These factors all add to the liveability of a suburb which in turn has a strong effect on capital growth.
Other Important Factors:
South Grafton has had a major flood event in 2022, and it is well known flood affected area. However this should not prevent shrewd investors from purchasing in this area. The insurance premiums are the same if not lower than parts of flood affected regional towns in Queensland. When purchasing in Grafton ensure that your insurance will have flood cover.
Grafton/South Grafton is an extremely diversified suburb with many employment industries such as healthcare, administration, education & manufacturing. Diversification of employment is paramount for long-term sustained capital growth so that if one industry collapses the economy can still sustain itself.
Vacancy rates are incredibly low sitting at 0.24%, meaning demand will be high, this will continue to drive up rent and house prices. Days on market remain low however it is still a cool-hot market where investors can purchase high quality investment properties for sub 450k.
Nearby Major Projects:
Why Buy Under 450K?
The reason I started I looking for properties under $450,000 is because it takes forever to save enough cash for the average worker. With about $45,000 (10% Deposit) and paying Lenders Mortgage Insurance (LMI) you can enter the market today in a regional location. And when you pick the right property in the right location you make some serious equity!
Example Property:
Metric | |
|---|---|
120 Cambridge Street, South Grafton NSW 2460 | |
Purchase Price | $409,000 |
Stamp Duty | ~$14,000 |
12% Deposit | $49,080 |
Expected Rental Price | $450-500/Week |
Expected Rental Yield | 5.75% |
*Note: These calculations are purely estimations, but overall numbers will vary depending on your deposit, interest rates and other factors.
Pro’s Of Investing In South Grafton
Plenty of low-set brick homes, high quality investment opportunities. Set & Forget.
Diversified economy and employment industry. Great for future capital growth.
Low stock on market & low vacancy rates driving up demand.
Con’s Of Investing In South Grafton
South Grafton falls under a flood zone. Higher insurance costs.
Large amounts of developable land, can cause prices to stagnate if developers build large housing supply.
Ultimate Verdict
South Grafton has displayed strong initial growth and I believe investors can capitalise on short term capital growth if they were to purchase property in this area. It remains important investors purchase good insurance to protect them of any future flood event (it is not if it happens, it is when it happens you must be protected). Low stock on market & low vacancy rates will continue to drive up rent and house prices which will increase your equity and help upkeep any maintenance costs. South Grafton has strong amenities like malls, station, schools, parks and highways that make it accessible and a liveable area. The diversified economy will allow investors to be at ease in case, one industry collapses in the region. South Grafton provides investors with ample choice to purchase a high quality investment property for under $450,000 which we believe they should capitalise on.
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Disclaimer: The information provided in this article is for educational and informational purposes only. It is not intended as financial, legal, or professional advice. Always do your own research and consult with a qualified professional before making any decisions. The opinions expressed here are solely those of the speaker and do not reflect the opinions or views of any other organization. By using this information, you agree that the creator of this content is not responsible for any financial or other losses you might incur.
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