Many investors tend to focus on capital cities when seeking a location for an investment property. However, with a sensible approach and the right research, regional towns can be excellent locations for expanding your property portfolio.
Start by looking for towns with population and jobs growth, and a diversified regional economy supported by more than one or two key industries. These are indicators of a regional property market with potential, because the strength of a town’s local employment prospects will in turn underpin real estate values.
Take Mackay, for example, in Central Queensland. It is a service gateway to primary industries such as sugar cane and ethanol. It also has some Australia’s biggest cattle farms and it’s a servicing hub for several major mines. To find out more about the investment opportunities in Mackay, visit the Raine & Horne Mackay website at www.raineandhorne.com.au/mackay
Also, look for regional cities that are well-served by public transport, hospitals, schools and universities, as this will increase demand for residential properties. The NSW government for example announced in July as part of its South East and Tablelands Regional Plan 2036, $187 million has been allocated for the South East Regional Hospital at Bega and $120 million for the Goulburn Hospital redevelopment. There’s also $50 million for the redevelopment of Bowral Hospital. This infrastructure will help underpin longer-term population growth in these towns.
Across Australia, centres such as Toowoomba in Queensland, Wagga Wagga in NSW, WA’s Mandurah and South Australia’s Port Lincoln are other excellent examples of regional towns offering plenty of potential for long term capital appreciation.
Still, investing in regional towns is not a licence to print money, so it is important you contact a local Raine & Horne agent to help kick-start your research, or visit rh.com.au.
Tips for buying an investment property in a regional town
- Research is critical for uncovering a successful regional real estate play, which generates decent capital growth and yield.
- Look for regional towns with viable and growing economies and populations – the Australian Bureau of Statistics or the local council are great sources of data about the demographics of a town.
- A regional town with excellent long-term growth prospects should have decent infrastructure in place – public transport, major roads, hospitals and schools.