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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?
· Sunshine Coast
· Mackay (South Mackay)
· Gladstone (West Gladstone)
New South Wales
· Newcastle (Merewether)
· Hunter Valley
· Southern Highlands (Bowral, Kiama and Moss Vale)
· Albury (North Albury and Lavington)
· Wodonga (West Wodonga)
· East Gippsland
· Yarra Ranges
· South Morang
· Margaret River
· Port Lincoln
· Mount Gambier
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.