Rutherford has been named among NSW’s best locations to invest in property with a three-year forecast growth rate of 15 per cent.
The news came this week as Money Magazine unveiled its top three real estate hot spots in each state.
Money Magazine Editor Effie Zahos rated Queanbeyan, just outside Canberra, as a leading option for entering the property market followed closely by Rutherford.
Orange in the state’s Central West came in at number three.
Rutherford is now on national watch after Ms Zahos announced the real estate hot spots during a segment on the National Nine Network’s Today Show on Monday morning.
She said Queanbeyan – still in NSW but close to Canberra’s CBD – has an average house price of $530,000, Rutherford $400,000 and Orange $395,000.
Buyers were warned however that while prices are much more steady in regional centres, there are dangers to be considered before moving out of capital cities.
“The main thing to avoid is one-industry towns because if something happens to that industry it can have a dramatic result on the whole town’s economy,” she said.
“We work closely with hotspotting.com.au because there is a lot to take into consideration,” Ms Zahos said. “Hotspotting does research on sales, jobs, infrastructure – all factors as to what is a hot spot.
“Queanbeyan was the pick of the crop because buyers still get the NSW benefits, they’re close to the Canberra CBD and the prices are much cheaper than Canberra’s with a forecast three year growth rate of 20 per cent,” she said.
“Interestingly Newcastle was one of the top picks last year and has had a strong market in NSW over the past 12 to 18 months. But there’s a ripple effect and the market is rising nearby in the Hunter region with towns cheaper than Newcastle.
“Sales in Rutherford in the past six to 12 months have risen and prices are following suit. Yields aren’t too bad either with 4.5 per cent for Queanbeyan and 4.9 per cent for Rutherford.”
Michael Haggarty of First National Real Estate in Maitland said the Rutherford news was no surprise given the suburb’s ease of access to the Hunter’s mines and Newcastle for employment.
“Newcastle prices have risen sharply over the past three to five years and Maitland prices are still affordable with excellent rental returns,” Mr Haggarty said.
He said there were also large land parcels on the western side of the city ready for development which will boost capital growth on property already established.
James Roderick from Starr Partners Maitland, said Rutherford was becoming increasingly attractive to first home buyers, offering a range of services from day care centres to schools and sporting facilities and a current sale price just sitting under $370,000.
But Ms Zahos said there has been some real estate doom and gloom. “But if people can ride this out without selling, they will reap the results in the long term.
“I know there has been some bad news in terms of the property market in NSW softening but that’s mainly in Sydney.
“Some regional areas have recorded price growth of about 10 per cent like Anna Bay, Cobar and Cessnock.
“These are small regional towns so I guess the theme in this story is if you want big gains then think small,” she said.