Why you should recommend regional hotspots to first time investors

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In April 2015 a report on Property Observer by Terry Ryder, the founder of hotspotting.com.au, revealed the reasons investors should be looking beyond shallow media figures and blue-chip suburbs (those located within 5 to 10 kilometres of the city’s CBD) to find the best places to invest.

Based on Hotspotting’s regular research and analysis, Ryder suggests regional centres consistently provide investors with much higher rental yields than properties in major cities and are the best locations for long-term capital growth. “The top 10 locations for the best growth averages over the past 10 years are all regional centres”, Ryder says.  

A great way to help buyers looking for an investment property on a low budget who want good rental returns is to recommend looking at property in regional hotspots.

For example, Ryder shows that the best growth rate over the past year in the Queensland property market occurred 1,700 kilometres north of Brisbane, where several suburbs of Cairns recorded a median price growth above 20 per cent.

As with any type of investment, always caution buyers to thoroughly research a number of areas before investing. They should be on the lookout for regional locations with rapidly rising populations, large-scale infrastructure projects in the works and a burgeoning local economy.

What are the regional areas and suburbs worth looking into?

Queensland

·      Cairns

·      Toowoomba

·      Rockhampton

·      Sunshine Coast

·      Townsville

·      Mackay (South Mackay)

·      Gladstone (West Gladstone)

  83 Scott Street, South Mackay, QLD
83 Scott Street, South Mackay, QLD

New South Wales

·      Wollongong

·      Dubbo

·      Tamworth

·      Goulburn

·      Newcastle (Merewether)

·      Terrigal

·      Hunter Valley

·      Southern Highlands (Bowral, Kiama and Moss Vale)

·      Albury (North Albury and Lavington)

  637 Argyle Street, Moss Vale, NSW
637 Argyle Street, Moss Vale, NSW

Victoria

·      Wodonga (West Wodonga)

·      East Gippsland

·      Yarra Ranges

·      Bendigo

·      Ballarat

·      South Morang

  13 Turton Court, West Wodonda, VIC
13 Turton Court, West Wodonda, VIC

Western Australia

·      Margaret River

·      Narrogin

  53 Clayton Road, Narrogin, WA
53 Clayton Road, Narrogin, WA

South Australia

·  Port Lincoln

·  Mount Gambier   

  6/56 Brownes Road, Mount Gambier, TAS
6/56 Brownes Road, Mount Gambier, TAS

Northern Territory

·  Gunn

·  Durack

  8 Peckham Court, Gunn, NT
8 Peckham Court, Gunn, NT

Tasmania

·  Glenorchy

·  Chigwell

·  Stanley

·  Smithton

  1/2 Hale Street, Stanley, TAS
1/2 Hale Street, Stanley, TAS

On the whole the right kinds of regional areas can be very appealing for investors especially if they have a growing population, a strategic location, a robust and diverse economy.

If chosen wisely regional properties offer investors a good opportunity to break into the market thanks to being more affordable than capital cities and blue-chip suburbs, offering better rental yields than capital cities and good prospects for future capital growth.

Are there any regional areas in your state you predict will heat up? Please share below in the comments section.

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Larissa Gardner
Larissa Gardner
Larissa Gardner is the Marketing Manager at arguably Australia’s best looking real estate website homely.com.au. With a superb devotion to product innovation, user-centred design and innovative marketing platforms for real estate agents, homely.com.au helps millions of Australians find their next home.

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2 COMMENTS

    • Hi Rethinkr, thank you for the comment. We didn’t set out to exclude SA or any state, we <3 SA property! Please see the revised blog above, now inclusive of regional areas in SA, NT and TAS. Cheers.

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