Finding A Good Regional Location For Property Investment

Many regional suburbs in Australia have seen solid property growth in the last 2 years as buyers move away from metro Sydney and Melbourne. These capital cities have seen a rise in the cost of housing which has led to homeowners and investors being lured away. The value for money also became comparatively low.

Regional Living – A True Alternative To City Lifestyle

People in the past felt not so comfortable if they have to move to a regional location. This may be true in some cases now, it is not the same anymore. Regional lifestyles offer a variety of benefits including lower living costs, greater time and enjoyment of the local area, as well as a higher quality of life.
Living in regional Australia is often less expensive than living in larger cities such as Melbourne & Sydney. The quality of life in regional locations is a major drawcard especially post COVID . Regional living is a breath of fresh air. It offers beautiful scenery, easy access to Victorian cities and beaches, and a great deal of natural beauty.

The number of communities in regional Victoria is increasing and they are becoming more welcoming to families who want to move with their children. There are many options for primary and secondary education in your area. You can also find regional sports clubs and activities.
Also, regional suburbs also offer a slower pace of living. For those who have lived in fast-paced cities for years, this can be a great way to recharge. Slower pace can allow you to have more time for the activities and hobbies that you enjoy without being rushed. Hence, regional Australia becomes a ideal spot for retirees.

The global pandemic has also contributed to the many benefits that employees are now enjoying from working at home. This makes it even more attractive to consider moving to regional Victoria or NSW.

Living outside of capital cities increases your study options. This comes with the added benefit that you don’t have to commute through traffic every day.
As a result, it is becoming more attractive to live in a region as the quality of your life improves. As major shopping centres and hip cafes open up, convenience and culture become more common. There are more jobs in the region as the population increases, and some government departments have begun to decentralize. Sometimes, wages in regional areas outperform those in the cities.

The transport facilities in regional locations have improved considerably, making it possible to commute to metro Melbourne or Sydney for work by public transport in double quick time when compared to what it was a few years back. Even more, regional residents can now work remotely and even start their own businesses with the NBN rollout across most parts of regional Australia. All this, plus a quality, affordable property, and less stress from traffic congestion, pollution, and stress, makes it a winner for people looking to move to regional areas within Australia.

Regional property values are growing

The highest performing region in Australia was Regional Victoria, with Latrobe–Gippsland up above 8.5% . Ballarat & Geelong also increased over 8% in value respectively whereas Bendigo rose above 4% percent. The region of Tasmania saw significant price growth with overall dwelling values rising above 8 percent.
Given the fact that Latrobe Gippsland has increased in serious value over the years. Star Investment Group offers a fantastic opportunity in waterfront development project in Gippsland, Victoria where you can make an investment of $100,000 or more and receive fixed 12% return on investment per annum, paid monthly plus a 10% capital growth. This passive income offer is applicable from 1st July 2023 for all new investors.

The positive property values in South Australia and Queensland remained stable last year, up 0.2% and 1.9%, respectively. This is due to their resilience to the downturns in Sydney and Melbourne. Queensland’s Gold Coast (up 0.1%) and Sunshine Coast (up 2.3% respectively) continue to experience demand from Brisbane. This is expected to continue. Port Pirie, Mount Gambier, and Port Lincoln in regional South Australia all saw solid growth last year. They outperformed Adelaide. These markets will prosper as state governments promise to invest big in infrastructure and jobs in their regional areas.

However, the property values of recently flourishing areas like Shoalhaven/Southern Highlands and Newcastle/Lake Macquarie in NSW experienced a decline in property values last years, which was down 4%, 4.1%, and 6.2%, respectively. Regional NSW experienced a 0.7% drop, which is remarkable considering Sydney’s 8% decline. Regional Western Australia did worse than Perth, with a 6.1% decrease for the year.

Because demand and supply are more volatile in regional areas than they are in larger cities, investing in property is not for the faint-hearted. A regional property can still be a valuable addition to your portfolio if you do your research.

What you need to know about regional property investing:

Rapidly growing population is a good indicator. Large-scale infrastructure is another major factor to consider to achieving good capital growth. A strong local economy is also important. If the median household income grows faster than inflation, this indicates that people are spending more money and the area is becoming more wealthy. It is good to see a lot of new businesses in the area, and not too many going out of business.

A major development like an airport or hospital will draw people to work , however, this does not have to be major criteria when choosing a location to buy an investment property.

These regional areas also have a diverse workforce, which keeps vacancies low and increases demand.

When is the right time to invest in property?

In smaller markets, timing your entry is crucial as the market prices may not always be in your favor. You should look for areas that have low supply and high buyer demand. It is not an easy task. However, there are some parameters that can help you compare different areas.
High clearance rates and low discount rates usually indicate strong demand.

Low vacancy rates are a sign that an area is popular among renters. This usually puts upwards pressures on rents and yields, which in turn attracts investors. Renters may be more inclined to buy if there are high rents. This can increase prices.

It takes careful planning, research, and analysis to make money on a regional property acquisition. Speak to an investment advisor that can provide you with the most recent property sales reports for any location. They will also help you structure your finance in a way that minimizes repayments and reduces risk.

With all this in mind, if you want to get into the property investment market, here is a guide that will help you use your super to buy an investment property.