Are you planning to buy a regional property? Regional properties may offer you a higher return in the long run and also one of the safest investment options! However, this doesn’t mean you should rush through the process and invest in one right away; You must be feeling tempted just because they offer you a high ROI.
In the last two years, many regional properties in Australia have witnessed high-value growth. According to the Australia Bureau of Statistics, even the population in those areas has increased. The overall population of Australia is projected to double to 46 million by the end of 2075!
This rise in population will not be confined to the main cities. Even regional areas will play a critical role in accommodating this increase in population. The population growth may lead to better regional property investment options.
All of this shows that investing in regional property can be a fruitful decision as the hike in the regional property rates is not just a trend. It is here to stay, especially when you consider the growth in the population.
With the right kind of planning and working with a buyers agency in Melbourne, you can maximize the chances of reaping maximum advantage from your investment.
Investing in regional property might be enticing, but you need to take note of many things. Like property investment in capital cities, many factors need to be evaluated before the final decision of purchase.
To make your journey of investing in regional property smart, seamless, and profitable, we have come up with a list of factors you must consider before investing in regional properties.
5 Factors you should consider when investing in regional property
- Location of the property
One of the main things to consider here is the long-term view of how the property will evolve over the investment period. For example, you might have invested in open land with a peaceful environment, but what if a factory sets up in that area in the next couple of years? It can affect and may diminish the property’s overall value.
It is necessary to analyze the ownership of the property. One must go through the usage of the intended area in the next couple of years. You can even take the help of Melbourne’s buyers agency for this purpose.
One of the best ways to know how the property will evolve over the investment period is to contact the town hall or other public agencies. These agencies are in charge of urban planning and zoning. They can provide vital information about the area that won’t be based on guesswork.
Such an approach will give you direct access to long-term planning. You can then decide how favorable or unfavorable your property investment will be.
- Check out for a property nearby to a train station or highway.
Instead of buying a property in the middle of nowhere, you should always try to find properties with the help of a buyer’s advocate in South Australia or a buyer’s agent nearby train stations or highways. According to real estate experts, this is necessary because one should only invest in areas with proper traveling or transportation connections to major cities.
All the workers in the regional area are going to work from home is simply a surreal thought, and therefore, the ability to go to the city at least a few times a week becomes paramount. But if the commute is difficult and costly, no one will be interested in living at that property.
In places like the mid-north NSW Coast, Illawarra, and the Hunter Valley, the house sales volume has almost doubled. It highlights the importance of the proper connection between these cities. But no one is asking you to invest in properties just beside the main railway station or just beside the highway; look for a property with access to good transportation within a 2 to 2.5 hours commute.
- Look at the migration partners of locals and out-of-towners.
Both migration and real estate prices are cointegrated! Yes, they do share an inter-relation. The influence of migration on housing prices is usually noticed in the long run. But the effect is usually not witnessed in the short run, so you should look at the migration partners of both locals and out-of-towners.
According to the experts, if you have planned properly and worked with a buyer advocate in South Australia, you can succeed in a regional town that has a low population. But if you have no supply and demand for property in a region, that investment is risky!
Moreover, a giant population has a bigger demand for establishments, facilities, and infrastructures, which highlights better property growth in the future. Some of the main things that you should consider before making a final decision on a regional property are;
- Is the region a large enough town for investment with enough people?
- How many schools are there?
- How many hospitals are there?
- What is the rate of migration?
If you are planning to check the exact population of a region you plan to invest in; you should refer to the Australian Bureau of Statistics. You will get a more accurate number.
- Check out employment opportunities.
You should never underestimate the employment opportunities while deciding whether to invest in a regional property or not, as more employment opportunities mean more people, and more people means the demand for accommodation will keep on increasing.
Keep in mind; employment is always linked with the property as, without employment, it will become a place for individuals looking for mortgages or rent. People who never consider the employment factor end up regretting their investment option.
Even the best buyers agent in Australia will consider the employment factor of a specific area before suggesting his client invest there. You can also look at the census data; it will give you an idea about whether the town will grow or shrink during the investment period. You can also check the Australian Bureau of Statistics to get employment and unemployment rates.
One of the key things here will be a diverse economy as the area you will invest in must depend upon a wide array of industries. Suppose the area you are investing in solely depends upon a single industry. In that case, it can become risky as the growth of the whole area depends on a single industry. It can lead to some devastating effects on the property’s value if the industry shuts down.
- Research about major development projects nearby the property you want to buy
A regional area with promising development projects for the future can be a more attractive investment option. The overall housing or real estate price can increase with the new development projects.
For example, both the Federal Liberal and national governments are working with regional airports, local council owners, and local communities to set a Regional Aviation Policy statement. It is a major part of developing the regional areas of Australia. One must consider factors like these before making the final decision.
Remember that infrastructure development projects can make regional areas more livable and profitable. Place of residence with motorways and highways will offer people convenience.
Regional suburbs are now being linked to the cities at a rapid pace. The Australian Government has planned to invest around $120 billion over ten years from 2022-to 23 in transport infrastructure.
But you don’t need to become an infrastructure development fiend to decide whether to invest in a specific regional area or not, as just setting the Google Alert for infrastructure and economic development in specific regional areas will be enough. There are even a couple of government websites that you can visit to learn more about the development projects, like;
- Tourism Research Australia – Tourism Regions
- Regional Australia Institute
- Department of Infrastructure, Transport, Cities and Regional Development
- Regional Development Australia
How will the buyer’s agent help you choose the right property?
Our agents have more than two decades of experience in real estate. Since we always keep tabs on the pulse of the real estate industry, you can take advantage of our expertise, experience, and dedication. At Buyers Agency Australia, we believe in surpassing the expectations of our clients.
It doesn’t matter whether you are planning on investing in real estate, capital cities, or regional areas. We have the right experts for you! They can make your investment process a big success, so leverage their professional expertise. Get in touch with our experts today!