Wondering Where to Buy Investment Property? Regional Areas Could Be Your Answer
By Peter Sarmas on 9 Oct 2013
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Investing in regional areas could get you ahead.
Photo: Dave Sag
Recent information suggests that property investors looking to purchases houses in high investment growth areas should look outside major metropolitan areas and focus their attention on the regional market.
According to CEO of Raine & Horne Angus Raine, regional areas have demonstrated a strong trend of capital growth as well as a record of low vacancy rates – making regional areas in Australia an ideal place to invest.
Mr Raine told Smart Property Investment Online that cities such as Tamworth and Wagga Wagga (NSW), Toowoomba (QLD), Bunbury (WA) and Port Augusta (SA) are his top choices for long-term capital growth potential in particular.
Bryan Bolitho from Raine & Horne Tamworth said that his city is receiving a high number of enquiries from investors looking for houses between $200,000-$300,000 – which usually deliver the investor a yield of around 5.5 per cent, and experience a vacancy rate of below 2 per cent.
“Regional areas have demonstrated a strong trend of capital growth as well as a record of low vacancy rates.”
“In Tamworth, it’s possible to buy an older style, three-bedroom home, with a single bathroom and garage for around $250,000, so your money can go much further in a regional town like ours,” Mr Bolitho said.
For those who are contemplating buying a property investment, Raine recommends investing in regional areas “that have viable, growing economies, while predicted rises in population and employment are key, as these bode well for long-term real estate growth”.
Raine also suggests that when buying an investment property, people look out for particular features that attract renters.
He says the things like access to public transport, major roads, hospitals, jobs in major cities and access to nearby school and universities are “a plus when looking for a rental property in regional towns”, and are likely to attract a lot of attention from potential tenants on the rental market.
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