A Suburb Dominated By Investors?

Suburb Details:

Investors are always asking “where do I find properties under $450,000?” well, West Tamworth provides ample opportunity however does that mean it is a good investment decision. With an approximate population of about 60,000, Tamworth is a small regional hub within NSW. Investors should always be aware about investing into smaller regional locations however these locations can generate serious equity as we have see in Queensland and Perth. But does that mean regional NSW will reflect that, read below to find out.

Key Data Metrics

_{*Note: Data derived from either DSR, Suburbs Finder or HTAG depending on reliability and availability of metrics. This is only a guide and best to cross-reference with other sources.}

Location & Infrastructure

West Tamworth is a suburb of Tamworth, New South Wales, located approximately 2 kilometres west of the Tamworth city centre. The area is primarily residential, with a mix of housing options and essential services. Key infrastructure includes several schools, such as West Tamworth Public School and St. Joseph’s Primary School, as well as medical facilities and shopping options at the nearby Tamworth Shoppingworld. The suburb is well-served by public transport, with bus routes connecting it to central Tamworth and surrounding areas. West Tamworth also features recreational amenities like Scully Park, sporting facilities, and the West Tamworth League Club, making it a well-connected and convenient suburb for residents.

Economic Diversity & Jobs

The suburb is a part of the regional city of Tamworth that contributes to the broader region’s economy, which is known for its diverse industries. Agriculture, particularly livestock, plays a central role, with Tamworth being a major centre for beef and poultry production, contributing to the region’s agricultural output. West Tamworth benefits from the city's strong healthcare and education sectors, which provide numerous jobs, alongside retail and tourism. Tamworth’s unemployment rate is around 2.5%, reflecting steady employment in these sectors.

Other Important Factors:

One of the main concerns about West Tamworth is the high renter to owner occupier ratio. It sits around 51% which indicates that there is strong investor activity. It also raises concerns that market maybe seasonal where people migrate to the city for work then leave with no intention of ever living there. We as investors generally want to invest in markets that are owner occupier driven.

Despite a high renter to owner occupier ratio, vacancy rates are incredibly low meaning that finding a tenant should not be difficult. However rents have not been rising in the Tamworth region in the past 12 months which is a bad indicator towards cashflow and capital growth. This is also reflect in the rental yields.

Supply remains low and demand remains moderately high and this is being reflected in the capital growth that has been occurring since 2020. I would advise investors to assess the affordability of the region as markets tend to grow to the income levels of local residents.

Nearby Major Projects:

• Tamworth Major Projects - Link

• Tamworth Invest - Link

Example Property:

_{*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 West Tamworth

• Plenty of opportunities under $450,000.

• Low building approvals and low stock on market.

• Diversified regional economy (Skewed towards agriculture).

Con’s Of Investing In West Tamworth

• High renter to owner occupier ratio (51%)

• Rents have not risen in the past 12 months.

• Tamworth has grown significantly in the past 3 years (40%)

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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.}