ORANGE’S guaranteed water supply, top-class amenities and strong agriculture and mining industries are the key reasons the city has been named one of Australia’s best places to buy a residential investment property.
Research compiled by property listing site Onthehouse.com.au ranked Australia’s top locations for rental investment, based on their predicted growth rates over five years.
Orange was rated the 26th best investment location in Australia, factoring in the risks associated with investing here and expected returns.
The research predicted rental returns in Orange to grow to around 7 per cent over the next five years.
Onthehouse.com.au consulting analyst John Edwards says the report is useful for potential investors trying to determine where to buy.
Despite Orange’s high ranking, Mr Edwards said developers and Orange City Council had to ensure they did not damage the city’s appeal by encouraging an abundance of high-density housing.
“The council also needs to make sure that in the process of development and expansion the town’s character doesn’t get spoilt,” he said.
“Orange has a beautiful style of living.”
Mr Edwards wanted future growth to happen on the city’s perimeter instead of adding to the density of the city centre.
“Orange is a regional centre and a regional centre is always a good place to invest,” he said.
“Orange also now has an assurity of water supply that it didn’t have before.
“If you were contemplating investing in farming or industry, water supply is something you’d worry about.
“Drought is still at the front of mind for many people.”
Mr Edwards said facilities such as a large hospital also made Orange attractive to investors.
“A regional centre has a lot of amenities and that makes life easier,” he said.
Mr Edwards said Orange’s low rental vacancy rates also added to its appeal.
Ray White Orange principal Libby Seaman said she was not surprise to see Orange rated so well in the report.
“Rental returns in Orange are strong, but rents have come back a little from what they were, say, two years ago,” she said.
“Investors are coming back to Orange because in the end the returns are very good.”
Ms Seaman said investors who bought at the low end of the market could expect the best returns.
“If you buy something for $150,000 you can expect to get around $220 or $230 a week in rent,” she said.
Bathurst and Dubbo did not make the top 59 list.