Orange property blossoms in Autumn.

With the groundswell of business activity in and around Orange, property forecasters are picking the district as a prime spot for property investment. While many capital cities experienced high growth rates during 2010, prices in those cities are now cooling off as a result. Property prices in Orange however are yet to feel the impact of capital growth, making now an ideal time to consider property as an investment.

Orange is riding the back of a mining boom, and together with the expansion of the Orange base hospital, demand is increasing for rental housing. Since many see mining as cyclical, its rental property that’s in high demand as many workers who are relocating from other cities won’t necessarily be selling their current homes to move here.

The workers coming into town tend to be contractors or employees of mining contractors. Rather than pay motel or hotel rates, companies are tending to rent homes or serviced apartments to accommodate their workers. With the increased demands, rents have been forced up significantly, resulting in rental yields of 8-10% especially on serviced apartments, which is outstanding for an investment which is ‘as safe as houses’.

A recent report by the Civil Contractors Federation indicated a need for 1000 homes a year in the Orange district. This means existing homes are in big demand while the construction of brand new homes is also required.

The $250 million construction of the new Orange Base Hospital is almost complete, and will bring an influx of health workers and boost related industries. Meanwhile mining is on a roll with the expansion of Newcrest’s Cadia mine expected to pump $1 billion into Orange’s economy each year. Newcrest has set up its international headquarters in Orange bringing with it an influx of employment. Exploration work is also well underway into the viability of a copper mine at Copper Hill, a project which is anticipated to create around 300 jobs.

While finding the property may be easy right now, access to credit from the major banks has tightened up considerably. Yet things are looking positive for investors with the arrival of Finlease into the city. Finlease is a finance broker which operates Australia-wide and focuses on the needs of small businesses and investors.

For property buyers in regional areas like Orange, specialist finance brokers give investors access to financial institutions all around the country. In Finlease’s case, that means a pool of over 20 leading financial institutions nationwide. Finlease operates a specialist property division and has the clout to ensure that loans can be sourced at attractive rates, which can be crucial in making property worthwhile as a long term investment. Employing a specialist finance broker can be a smart move as the broker can handle all aspects of the loan application. This removes the hassle of all the paperwork and in many cases avoids the possible disappointment of an incorrectly completed application.

So it’s worth speaking with Michael Abberton who operates the Finlease branch in Orange, or visit www.finlease.com.au for the low down on finance for residential property investment.

NOTE FOR EDITORS:

Finlease is a specialist finance broker that provides the easiest way to finance business. Finlease has grown 20 times in 20 years and has nearly $1 billion worth of funds currently arranged and in place for their predominantly small to medium business clients.The company finances all manner of business & personal assets - from charter boats to cranes, aircraft to fit-outs and all types of property. With offices Australia-wide and over 4,000 clients throughout Australia, Finlease acts as finance advocates to ensure favorable outcomes for its clients.

For more information, or an interview with a Finlease broker, call Sian Grech phone 1300 FINLEASE (346 532) or email sian@finlease.com.au