Regional real estate agents report growing interest in regional property sales, with an increasing number of first-home buyers and baby boomer retirees appreciating the value that a move to the country can offer.
It’s something to think about if you are struggling to gather the hefty deposit needed in most big Australian cities but with figures showing that capital growth in many regional centres is on the rise, now could be the best time to secure your dream property at a friendly price.
Regional Property Popularity Growing
Data analysed by CoreLogic for the twelve months of 2017 show capital growth in regional New South Wales hit 7.4 per cent – more than the 3.1 per cent capital growth in Sydney’s housing market. To add more context, the average regional house price is still an affordable $355,000 – $300,000 less than the average price in Australian capital cities ($656,000).
According to quotes in the media from Real Estate Institute of Australia President, Malcolm Gunning, Deputy Prime Minister Barnaby Joyce’s push to encourage more Australians to get out of the cities if they want to access affordable housing is something many Australians are seeing as good sense.
Choose Regional Investment Opportunities Wisely
Of course, it’s important to recognise that not all regional centres hold the same opportunity for property growth. In recent newspaper reports discussing the issue of housing affordability in regional Australia, Mr Gunning described the market in regional Western Australia as being down in 2017, while areas in regional South Australia are flat and set to stay that way in the near future.
In contrast, CoreLogic data shows that regional Tasmania is up 5.5 per cent, with regional Victoria experiencing a 4 per cent boost and regional Queensland up 1.3 per cent.
Benefits of Regional Property Purchases
For buyers looking to regional areas, the good news is that, although there are much less properties to choose from, there are bargains to be found, thanks to vendors who may have been on the market for longer than they hoped. Find an owner who needs to sell quickly and you may have the upper hand to snap up a property you love at a price you love.
Fresh air, away from the hustle, bustle and big city traffic jams are other attractive selling points but to understand how the benefits might add enjoyment to your life, spending some time in a regional centre before committing to a home loan, is always a sensible approach. That weekend getaway you love each summer could be miserable in winter, while the tourist town you escape to each long weekend might seem like hell on earth as a local contending with rubber-necking day-trippers. Research is always a solid start to any property purchase and when the added factor is a complete lifestyle change, it is more important than ever.
Watching TV shows about idyllic tree or sea-change living may not be the best way to make up your mind about regional living. Once you’ve spoken to an experienced mortgage broker to understand your affordable budget, online searches can help you narrow down properties that fall within that price range – and from there, you can compile a list of places you might consider moving to.
Be critical about all the things in your life you do not want to sacrifice – for everyone, of course, that will be different. If education for your children is a big issue, be sure to choose a regional location with access to quality schools. If you need steady employment to sustain your lifestyle and mortgage, then moving to a place with limited opportunity for a job, is not a good move. Luckily, for many people these days the changing nature of workplace culture enables many jobs to be maintained remotely – and if that’s you, then, officially, you can live anywhere. But be realistic about your employment status and recognise nothing lasts forever – no matter how permanent your current position may appear at the time.
Yes, there are great prices available, but not if it comes at the cost of your career and personal satisfaction.
Before you decide to buy any property, understanding your ability to secure finance at a great interest rate is an important first step. If you’d like advice about the mortgage you can afford to help you decide whether a move to regional Australia is a positive move for you and your family – talk to our team of experienced mortgage brokers at Lending Specialists today.