Grafton rentals doing well
INTREPID property investors with faith in the Grafton area are finding themselves rewarded with well above average rental returns.
RP Data lists the average rental return rate for the Grafton area as 5.7%, but Angus McKimm from Grafton's McKimm's Real Estate said his agency was seeing examples of rental returns around 6.5%.
"You can buy a nice house in Grafton and then rent it out for close to 7% gross return which is very high considering that in Sydney you're probably looking at an average of more like 3% or 4% per cent," Mr McKimm said.
This trend hasn't escaped metropolitan attention either - Mr McKimm said only last Friday he'd been interviewed by a journalist from a Melbourne-based real estate publication about a property McKimm's had listed with a suggestion it would attract a 6.8 per cent rental return if it sold for $200,000 at auction next month.
Mr McKimm said it was an encouraging trend and he hoped it would attract more investment in the Grafton area.
It isn't just McKimm's Real Estate experiencing this either - a quick ring-around to several other real estate agents in the Valley revealed many were also seeing strong rental return rates.
Bailey and Gough First National property manager Sharon Pate said supply of rental properties in Grafton was struggling to keep up with demand, making it a perfect time for property investment.
Mr McKimm said despite the real estate market still being a bit "doom and gloom", he and other real estate agents were starting to see early signs of life returning to the market.
"Each of the agents I've spoken to over the past few months have said they're starting to see a bit more confidence and optimism from their buyers," he said.
"There are still lots of houses for sale - you can't get around that fact.
"But we're starting to see a few more investors and home buyers showing a bit more confidence and willingness to take the plunge and get in there."