Demand for property in Regional Victoria, Queensland, NSW and SA surges
Covid-19 has played a vital role in getting us to review life, to review the unnecessary fast and expensive pace big cities force one into.
Regional locations offer a more meaningful, slower and far less expensive lifestyle choice whilst giving residents the opportunity of working within their regional centre or commuting via freeway or fast train into the big cities when required.
Covid-19 has also normalised working from home and going forwards companies will become more flexible with their workforce in where they work so long as they work efficiently.
In Victoria Regional towns are verging on becoming cities such as Geelong, Werribee, Melton and the smaller ones such as Ballarat and Bendigo all are undergoing extensive investment into infrastructure by government and industry. Both government and industry are thus creating new jobs which attracts population growth for employment and lifestyle.
Population growth places upward pressure on the supply of homes to own or rent, which results in capital growth and also increase in rental yield on the back of continued rising demand and a low supply.
Did you know?
Did you know the Sunshine Coast is undergoing the largest investment into infrastructure in the History of Australia right now. The positive impacts of a $32bn dollar investment into Sunshine Coast will alter the nature of property in that area forever today and going forwards. Sunshine Coast remains one of the primary cities attracting investment into property whilst undergoing significant population growth. Currently sitting at Australia’s 10th largest city, Whilst Ipswich continues on tract to be one of Australia’s fastest growing inland city.
These Regional Cities are cheaper than their nearest capital city and often surrounded by improved liveability conditions and attractions than a capital city offers; yet are usually a short train or bus commute into the closest capital city. The best of all worlds, whilst also being the beneficiaries of capital city investment and growth.
There remains a shortage of titled land in these regional centres, this ensures demand remains strong and supply low. The financial implications being price of properties are holding firm (some still growing during Covid), vacancy rates remain exceptionally tight providing sound rental yields.
Since the HomeBuilder scheme was introduced, demand for property in Regional Centres escalated incredibly with land developers taking advantage and increasing the price per square meter of land on the back of an increasing demand and a low supply. Principal of Economics largely at play.
New Infrastructure and Return on Investment
Another worthwhile investment factor is whenever infrastructure in an area completes there is always a surge in property value, especially on properties closer into this new infrastructure. At the same time rental yields also increase on the back of the completing infrastructure. Market statistics continue to prove this occurrence.
So when is it a good time to buy a property to live in or for investment in Regional Centres?
“Yesterday, today and tomorrow the fundamentals in the market will tell you.”
If you are looking for an investment be mindful of the following factors :
- Regional Centres offer the potential of capital growth and sound rental yields
- BUT very few properties are Investment Grade, it is imperative that you match the investment vehicle to your goals and requirements
- If you are planning to build an investment property portfolio, keep in mind the banks are way less interested in Equity in your portfolio as they are in the cash flow of your own balance sheet
- Meaning it makes sense to secure your next investment and your next one giving you a combination of healthy growth potential and as high a rental yield as possible
- Challenge yourself : If the decision is easy, you will continue to get the same results you always get. BUT when you challenge yourself and make that tough decision devoid of emotion which sits outside of your comfort zone, you will achieve improved results above the ones you normally get.
- This is not a property, it is an investment vehicle. Treat your investment decision making in a way to ensure that the investment vehicle is well matched to the outcome and goals you are wanting to achieve.