Investor hotspots revealed in new report by Our Broker

Bathurst’s famed Mount Panorama race circuit. Picture: Robert Cianflone

Investors have fled the high price points and low rental yields of metropolitan suburbs for new opportunities in the regions, a new report has revealed.

And inquiry levels in country towns are jumping as a result.

Raine & Horne’s financial services arm, Our Broker, reports investor interest across regional NSW has spiked by 20–30 per cent over the past year, with hotspots including Bathurst, Young, Inverell and Casino firmly on the radar.

Craig Betalli, senior broker at Our Broker, says cheaper money has forced investors to rethink where their capital is best deployed. “Lower borrowing costs have given investors more confidence, and many are asking how they can maximise the benefit of those cuts,” he said. “Regional markets offer a compelling answer, with investors able to get more bang for their buck while tapping into strong rental demand and higher yields.”

PropTrack data shows Sydney’s median house price has hit $1.5 million with gross yields at 2.77 per cent. Regional NSW, by comparison, has a median of about $800,000 and average yields of 4.2 per cent – often considerably higher in pockets where demand and affordability intersect.

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A typical home in Casino usually sells for about $500,000.

Kate Morgan, principal of Raine & Horne Casino, says the Northern Rivers town is buzzing with investor demand, but stock is scarce.

“We’re fielding strong inquiries, but the challenge is a lack of homes coming to market,” she said.

A three-bedroom home in Casino typically sells for about $500,000 and rents for $480–500 a week, delivering yields of around 5 per cent. Larger family homes are especially sought-after. “For owners considering selling, now is an ideal time to take advantage of high demand and limited supply,” Morgan added.

Further inland, the New England region has been attracting out-of-towners chasing large rental returns.

“In places like Inverell, yields north of 7 per cent are still achievable,” said Nellie Hayes, principal of Raine & Horne Armidale/Glen Innes. She points to a recent $480,000 sale in Inverell renting for $700 a week – a 7.5 per cent return.

In Glen Innes, where a $370,000 cottage was recently snapped up, investors are collecting weekly rents of about $400, equating to 5.6 per cent yields.

“The sweet spot is that $450,000 –$500,000 range,” Hayes said. “Open homes are packed with investors, and properties are being snapped up quickly.”

Craig Betalli says lower borrowing costs have given investors more confidence.

In Bathurst, investors have returned after a long absence, according to director Grant Maskill-Dowton.

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“Over a six-month stretch, I could count investor sales on one hand,” he said. “But in the past two months, the tide has definitely turned.”

With a near-zero vacancy rate of just 0.05 per cent, Bathurst offers strong confidence for yield-seekers, with low risk of vacancy for investment properties. A $700,000 home can rent for around $600 a week, while two-bedroom units in the mid-$400,000s can deliver close to 5 per cent returns.

Maskill-Dowton says open homes are drawing serious buyers, including Sydney-based investors making the trip west. “They’re asking the right questions about rent returns, vacancy rates and cash flow,” he said. “It shows investors are back in the market and doing their homework.”

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