Why investors need to look at regional locations for growth
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Sep 4, 2017
Why investors need to look at regional locations for growth
While inner-city properties are often considered a ‘safe bet’ investment, constantly rising prices are making them unaffordable for many.
Many investors and would-be residential real estate investors are baffled at the current marketplace with prices in many CBD locations at around $1 million or more. Everyone is trying to identify where is a ‘safe bet’ to invest in residential property and if there is even such a thing as a ‘hot spot’ anymore.
Rising prices are making it harder to acquire a property and moreover, harder to manage mortgage repayments and other on-going out-of-pocket costs.
While inner-city properties are often considered a ‘safe bet’ for investment in terms of securing tenants and both rental and capital growth – constantly rising prices are simply putting properties like this out of reach for many.
Many Sydney investors have been looking at Brisbane and Melbourne and while these cities are slightly more affordable for them, prices interstate are climbing too and these properties are still too expensive for many trying to get a foot in the investment door.
If the end goal for an investor is to secure a property that will deliver a good return and capital growth over the medium to long-term with a manageable mortgage, then there are plenty of great opportunities in regional locations at an affordable entry level price.
When considering a regional area, there are few better than Regional Victoria. There is a lot of future growth potential to unlock in areas such as Bendigo, Ballarat and Geelong. Putting these areas under the microscope they are great locations for investors to enter the market at a low cost with solid growth forecasts and positive local economic conditions.
Furthermore, regional towns are often bolstered by major government infrastructure projects which strengthen their local economy and drive employment and population growth.
A major drawcard for investors is that these regional areas are extremely affordable. The median house price is very favourable when compared to Melbourne’s median house price of $822,000. The median house price in Bendigo is $327,000, Ballarat $335,000 and Geelong at $475,000.
Read more Australia's regional growth hot spots:
Selling up in Melbourne to be mortgage free in Geelong
Twenty per cent of Newcastle sales from Sydney buyers: PRDnationwide
