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Forbes

NSW 2871LGA: Forbes Shire

Investment Score

75

/100

AI Intelligence Summary

Forbes is a historic regional town in NSW's Central West, serving as the administrative center of Forbes Shire with a population of approximately 10,200. Known for its rich gold rush heritage and the famous annual Elvis Festival, Forbes offers an affordable lifestyle with strong community connections. The town features excellent recreational facilities centered around Lake Forbes, quality educational institutions including Forbes High School, and comprehensive healthcare services through Forbes Hospital. Located on the Newell Highway with rail connections to Sydney, Forbes provides good regional connectivity while maintaining its country charm. The property market remains highly affordable with median house prices around $320,000, offering excellent rental yields for investors. The local economy is supported by agriculture, mining, and government services, with a stable employment base. Forbes combines historical significance with modern amenities, making it attractive for families, retirees, and investors seeking regional opportunities. The town's infrastructure is well-developed with NBN connectivity, quality water and sewerage systems, and an airport for general aviation.

Strengths

  • Highly affordable property market with strong rental yields
  • Rich cultural heritage and tourism drawcard with Elvis Festival
  • Excellent recreational facilities including Lake Forbes for water sports
  • Strategic location on Newell Highway with good regional connectivity

Opportunities

  • Tourism growth potential leveraging heritage and festivals
  • Regional development initiatives and government investment
  • Renewable energy projects in surrounding areas
  • Agricultural technology and value-adding industries

Considerations

  • Limited employment diversity compared to metropolitan areas
  • Aging population demographic reducing workforce
  • Limited public transport options within town
  • Distance from major metropolitan centers

Property Market

Median House

$320K

+4.2% 1yr

Median Unit

$195K

+3.8% 1yr

Rent (House)

$350/wk

Rent (Unit)

$230/wk

Days on Market

65

Vacancy Rate

1.8%

Auction Clearance

62.0%

Price Growth

Type1 Year3 Year5 Year
House+4.2%+18.5%+28.3%
Unit+3.8%+16.2%+25.1%

Rental Yields

House Yield

5.8%

Unit Yield

6.2%

Investment Scorecard

Overall Investment Score75/100
Growth Potential72/100
Cashflow Score82/100
Risk Score (lower = safer)65/100
Affordability Index85/100

Demand/Supply Ratio: 1.40

Demand exceeds supply — favourable for sellers

Tax & Financial Intelligence

CPA-grade analysis for Forbes at median house price

Standard transfer
$9,370
First Home Buyer
Exempt

Save $9,370

Foreign buyer surcharge
$25,600

+8% surcharge

Annual rent income
$18,200

$350/wk

Interest (80% LVR @ 6.5%)
-$16,640
Other expenses (~2.5%)
-$8,000
Net rental position
-$6,440

Negatively geared

Tax benefit (39% MTR)
+$2,512

Reduces taxable income

After-tax holding cost
$3,928/yr

~$76/week

Based on 5.7% p.a. growth (from 5-year trend), 50% CGT discount, 39% MTR

5-Year Hold

Est. value
$421,408
Capital gain
$90,438
After discount
$45,219
CGT payable
$17,635

10-Year Hold

Est. value
$554,953
Capital gain
$223,983
After discount
$111,991
CGT payable
$43,677

Investor Quick Summary

Entry cost (stamp duty)

$9,370

After-tax yield

3.54%

Weekly holding cost

$76/wk

10yr CGT (est.)

$43,677

Estimates based on FY2025 NSW rates at median house price. Assumes 80% LVR, 6.5% interest rate, 39% marginal tax rate ($135K-$190K bracket). Individual circumstances vary. This is general information only and not personal financial advice. Consult your CPA before making investment decisions. Local Knowledge Pty Ltd — Registered Tax Agent.

Demographics

Population

10,200

Median Age

42

Median Income

$52K

per annum

Family Households

68.0%

Professionals

35.0%

University Educated

22.0%

Unemployment

6.2%

Born Overseas

15.0%

Dwelling Mix

Houses: 82%Units: 15%Townhouses: 3%Total: 4,800

Lifestyle & Community

Walkability65/100
Public Transport3/10
Schools Rating7/10
Safety8/10
Family Friendly8/10
Cafes & Restaurants

18

Parks

8

Hospitals

1

Distance to CBD

385.0 km

Nearest Station: Forbes Railway Station

Relaxed country lifestyle with excellent recreational opportunities around Lake Forbes, quality dining and shopping, and strong community events calendar

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Data sourced from multiple sources. Last updated 26 March 2026.

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