Property investors choosing Lake Macquarie to build granny flats
Sydney’s high price tags have clearly become a hard pill to swallow, with property investors and families looking north for property price relief and ending up in the burgeoning Lake Macquarie region.
Just 90 minutes away from one of the world’s most expensive cities (and 20 minutes from Newcastle City) is Lake Macquarie, a cosmopolitan and progressive city with a sense of community.
Lake Macquarie’s relaxed lakeside lifestyle and plentiful employment opportunities have attracted a lot of families to settle in for longer periods. The city’s strong family appeal has pulled in a lot of out-of-town property investors looking for long-term tenants and plenty of long-term capital growth.
Families and individuals who want to escape the hustle and bustle of the city life and enjoy more peaceful and affordable living come to Lake Macquarie. The city is the fourth largest regional city in NSW, with a diverse and dynamic economy in which thousands of enterprises thrive.
Alongside this is a boom in granny flats, as more and more people are living with their extended families on the one property, so everyone is close by. The Backyard Grannys team have seen a spike in enquiries for the Lake Macquarie area, split evenly between people wanting to build a separate abode within reach for their grown-up children or parents, and property investors looking to increase their return on investment.
Property investors looking for low-risk, high yielding investments are adding granny flats in their property portfolio. So far, these investors have seen impressive rental yields year after year, with students and young couples as major property tenants.
Of Lake Macquarie’s 193,092 residents, 23 per cent of its occupants live in rental accommodation. The median rent for houses is $400 per week and the median rental yield is four per cent. The median listing price for houses is $519 000 and this has significantly changed six per cent over the past year.
According to PRDnationwide research analyst Oded Reuveni-Etzioni, young families and upsizers are driving the growth in the Lake Macquarie area. He stated that the city is one of the best real estate markets we’ve experienced for some years.
If you are wanting to find out more information about building your granny flat, please click here to contact us or call 4947 2800