Craig Vaughan is a mortgage broker and a property investor, so he often knows where people are buying ahead of time. Here, he reveals the location he thinks is set to boom – and why.
“I’m a mortgage broker and property investor and I’m always looking for good property investments – who isn’t?
In my job, I get to finance lots of property purchases both owner-occupied and investments. I get to see lots of investment property purchases cross my desk. What caught my attention over a period of two years were a few clients purchasing property in Nowra in New South Wales and the returns looked good.
I did my due diligence, consulted property managers and confirmed that the vacancy rate was low. I decided that I needed one of these myself.
I visited the area to get a feel for the place and was impressed by the vitality and busyness of the place – lots of owner-occupied property under construction and not much investment property. It seemed to be flying under the radar – a well-kept secret if you like. In fact, I’m not sure if I’m doing the right thing by revealing it as a desirable investment location.
I’ve purchased a dual-occupancy dwelling – so a three-bedroom home and a two-bedroom unit. It has two driveways. I bought it as one of six lots in an already established residential part of Nowra. Oversupply wasn’t an issue because there were only six lots.
My block was about 1,000 square metres for both dwellings. I wanted a space where I could build a granny flat – you also get the depreciation benefits of a new property that way.
The get-in costs are cheap. If you buy land in New South Wales, you get a $5,000 grant for investors which covered all the stamp duty and purchasing costs.
One of the main things I like about the area is the opportunity for big infill and the Stocklands development has been a positive for the area.
I think I’m onto a winner here.”
Dual-occupancy: 3-bedroom, 1-bathroom house & 2-bedroom, 1-bathroom unit
Purchased: January 2014
Purchase price: $480,000
Rent: $630p/w combined
Rental yield: 6.8% combined