An Orange financial planner says it is a good time to invest in local property.
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Russell Tym, managing director of Moneylink Financial Planning, has agreed with national property analyst Simon Pressley from Propertyology who said property in Orange had strong investment potential.
Mr Pressley said Orange was arguably the most consistent property market in Australia.
Mr Tym said Orange had avoided the falls in values seen in capital cities.
“The [Orange] economy is doing well, that’s for sure,” he said.
“There is potential from some growth because the economy is going well.”
He suggested investors look at property closer to the CBD to maximise gains.
“I would tend to favour the inner areas than the outer areas. More people want to be in the inner areas,” he said.
However, he said investors in Orange property would not see major or fast gains in their investment as local prices had already risen.
“There is potential gain there but I wouldn’t say it will be huge,” he said.
“Values have already risen in the past couple of years so you wouldn’t expect it to grow much more.”
There’s a lot of major stocks that are down by 10 to 15 per cent and represent good buying.
- Russell Tym, financial consultant
Mr Tym said net rental yield for investors in Orange was about 3-3.5 per cent.
“It is better than bank interest but it is not terribly high. So you do need capital growth,” he said.
Mr Tym said investors should diversify and include shares and even farmland in their planning.
“I would say farmland has been doing particularly well. Property is a very valid proposition.”
He said 30-35-year-olds on a reliable income should consider property.
However, Mr Tym said property investment carried larger transaction costs than buying shares and it was not as easy to buy and sell.
He said it was a good time to invest in shares, particularly major banks and Telstra which had suffered share price falls of up to 15 per cent this year.
“There’s a lot of major stocks that are down by 10 to 15 per cent and represent good buying,” he said.
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