The month in review: Albury

By Herron Todd White
May, 2010

The Albury-Wodonga region still provides affordable investment opportunities in the current residential market. For the investors looking to purchase a property in the least expensive price range ($200,000 to- $300,000), a gross rental return of approximately 4% to 6% is likely to be achieved. Generally speaking, there are a number of properties that fit within this price range in the Albury-Wodonga region (North Albury, Springdale Heights, Lavington, Thurgoona, West Wodonga to name a few). Most of these outer lying suburbs are also within reasonable proximity to transport services, education/university facilities, shopping centres and most importantly employment opportunities. Therefore, making the region a popular choice with investors (either locally or from Sydney and Melbourne) as well as for owner-occupiers all year round. The typical dwelling within these suburbs is generally well established (circa. 1960-1980s) comprising three bedrooms, one bathroom and most commonly of brick or clad construction. These dwellings are situated on standard allotments ranging from 500 to 700sqm. In some cases, the property may have been partially updated internally and overall generally presents in reasonable condition commensurate with age.

In the mid-range price level ($300,000 to $450,000), acceptable gross rental returns of 4% to5% can still be achieved. Properties in this price range are generally centrally located, more modern in age and design or updated internally. Residential dwellings in this price
range are still seen as a good ‘value for money’ option, and attract a mix of both owner-occupiers and investors. The more expensive residential properties within the region which fall in the $500,000-plus price range are generally owner occupier dwellings and is most cases receive a lower gross rental return of approximately 2.5 to 3.5 %. Therefore, investor interest in this price level range is reduced, as apart from a reduced gross rental return, these properties are generally priced too high for investor budgets. An exception in this price range would be a block of units, which generally commands a 4.5% to 6% gross rental return.

Most properties at the ‘high end’ of the residential market within the Albury-Wodonga region are generally situated on larger than normal allotments ranging from approximately 850 to 2000sqm and in most cases have a unique aspect or view over the surrounding district.
Other dwellings falling into this price range are usually substantial in size and have been built to a high standard of finish. Properties that are centrally located to Albury and situated in the more appealing tree-lined streets may also fit into this category. The typical ‘high end’ residence in the more centrally located areas comprises a period brick or weatherboard clad dwelling which has been fully renovated or refurbished.

Please note that information in this publication is subject to change without notice. Smartline assumes no responsibility for any errors, omissions or mistakes in this document. © 2009 Smartline Home Loans P/L. ABN 38 085 370 270