Although regional migration rates have decreased from their pandemic highs, regional property remains a popular choice for many investors and owner-occupiers looking for a change of scenery.
If you’re planning to invest in regional property or relocate for lifestyle reasons, consider these essential factors before making your decision.
When choosing a location, several factors should be considered to help ensure a dependable investment return and future property value growth, including:
Lifestyle – Whether you seek a slower pace of life, proximity to water, or a remote escape, ensure the location aligns with your desired lifestyle.
Commutability – With many office workers now required to attend the office for part or all of the week, consider if the location is close enough to nearby cities or towns for a feasible commute for you or potential tenants.
Family Friendly – Families typically prefer areas with good education, sports, and medical facilities. These regions often have stable populations, as families tend to stay for their children’s schooling.
Right Price – Affordability is a major attraction for regional buyers, but be cautious of areas that seem overly cheap. This could signal a lack of amenities, a declining population, or low demand, which might make it difficult to find tenants or sell in the future.
Growth – Whether you’re seeking new employment upon relocation or aiming to attract tenants, a robust local economy is invaluable. Regions with well-established industries and accessible employers typically experience low rental vacancies and high property demand.
Infrastructure – Are there any notable infrastructure initiatives in the works? Significant transportation, healthcare, or educational projects often signal a burgeoning region and population growth, which can be beneficial for both property owners and investors.
Climate – before making a move, investigate the local climate to anticipate potential variations in temperature, rainfall, or humidity compared to your current environment. Transitioning from a temperate zone to a tropical climate, or vice versa, can be quite an adjustment!
Amenities – Does it offer all the necessary amenities for you or potential tenants, including shops, parks, hospitals, sports facilities, schools, and more?
See if you qualify for the federal government’s Regional First Home Buyer Guarantee program. It permits first-time buyers to acquire a regional residence with only a 5% deposit, exempt from paying Lenders’ Mortgage Insurance. The program caters exclusively to singles and couples purchasing a primary residence (thus excluding investors). Each state imposes price thresholds, with varying limits for state regional hubs compared to other regions.
Similar to investing in urban regions, adopting a practical mindset is crucial when buying a regional investment property. Prioritize financial gains over any emotional attachment you may develop. Additionally, unless you intend to oversee property management personally, engaging a property manager is essential to secure suitable tenants and handle property affairs on your behalf.
Regardless of how appealing a property’s price may be, always conduct a thorough physical inspection and obtain independent building and pest reports before making a purchase. It’s equally vital to visit the area and gauge its vibrancy first-hand—vacant shops and buildings could indicate economic or population downturns.
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