October 6th, 2022
5 questions first-time Property Investors should ask
First time investors
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With capital city prices skyrocketing, and new listings dwindling there’s never been a better time to turn your attention inward! While some of us could benefit from some self-reflection, when we refer to looking inward we’re actually talking about heading inland. It’s no secret that the cost of living crisis has prompted many to move to fringe or regional areas, to maintain a healthy work-life balance, keep costs down or embrace slow living. Pair this with the fact that many young teachers, health workers and first responders are seeking a start in the country due to job opportunities, and it’s easy to see that there are plenty of prospective tenants for the growing rural market.
Regional Australia is the perfect place to get your start in the property game, whether you’re a first-time home buyer looking to make a scenic change, or you’re a prospective investor looking to begin building your portfolio. Australia faces a population boom fuelled by a rise in net overseas migration of up to 1.755 million by 2028, and our capital cities are not equipped to meet the rising demand. Therefore, many Aussies will look to those fringe and regional towns to call home.
With that being said, not every one of the 1,700+ towns in Australia are advantageous for investment properties and rental returns. Property Analyst, Terry Ryder elaborates on this sharing that “of course, not every regional centre in the nation is a future hotspot. A location needs to have more to offer than cheap real estate to be featured in this report — it must also have growth drivers likely to lead to capital growth over time.”
So, let’s take a look at the best regional towns across the nation to focus your sights on!
Rockhampton, QLD
Rockhampton is located on the Capricorn Coast in Queensland, approximately a seven-hour drive north of the state capital, Brisbane. Dubbed the ‘Beef Capital of Australia’ the townhouses over 81,000 people, and has thriving agricultural, livestock, mining and education industries. Rockhampton is a quickly growing hub for young adults in the education, healthcare and mining sectors.
So how much can you expect to pay for a property? The median price for a house in the region is $235,000, recording a growth of 2.2% over the past 12 months. With a rental yield of 8.3%, and a median asking rent of $390 per week it’s no wonder why Rockhampton is on the map for so many.
Mount Gambier, SA
Nestled on the Victorian and South Australian border is the inland town of Mount Gambier. Home to over 28,000 people, this heritage-marked town is the gateway to the Limestone Coast’s esteemed wine region and a popular place to settle for young families. With steady agricultural, manufacturing, health, tourism and social services industries, Mount Gambier is becoming more popular amongst young professionals from both Melbourne and Adelaide.
So how much can you expect to pay for a property? The median price for a house in the region is rapidly rising (up 12.6% since this time last year) at $420,000. Pair this with a median asking rent of $400 per week, increasing by 8.1% over the past 12 months. Being a ‘halfway’ point between the two capital cities means that Mount Gambier’s prices are likely to increase as more people look to regional areas with good connectivity.
Darling Downs, QLD
The Darling Downs is a region in South East Queensland, spanning over 99,000 square kilometres. The largest towns in the region are Ipswich and Toowoomba, which are both under a two-hour drive from the state capital, Brisbane. The region is coined as being prosperous for investment opportunities due to its proximity to Brisbane, whilst still retaining its thriving agricultural economy.
So how much can you expect to pay for a property? The median price for a house in the region’s leading town Toowoomba is $547,550, which is an increase of 10.6% over the past 12 months. With a weekly asking rent of $450 for a house, increasing from 5.9% since this time last year, it’s evident that the Darling Downs region is rapidly growing.
Geraldton, WA
With its crystal clear beaches and bright sandy landscapes, it’s no surprise that Geraldton is a popular destination for residents and tourists alike. Slightly more isolated than other towns on this list, Geraldton is a four-and-a-half-hour drive from Perth, however is a hub in its own right. Being a recognisable town in the mining, resources and renewable energy sectors, Geraldton is undergoing one of the biggest growth spurts in Australia!
So how much can you expect to pay for a property? The median price for a house in Geraldton is $346,500, increasing 5% from this time last year. The median rental price for a house is set at $420 per week, increasing a whopping 20% over the past year.
Armidale, NSW
Located in the dreamy New England High Country in Northern New South Wales, Armidale is filled with picturesque churches, cosy cafes and delectable restaurants. The town is popular amongst university students (making up 17% of the population) attending the prestigious New England University, as well as retirees looking for a sea change.
So how much can you expect to pay for a property? The median price for a house in Armidale is $489,500, seeing a 3% decrease over the past 12 months. This is not cause for concern however as the median rental price per week is strong at $440 for a house and $300 for a unit, increasing by 3.4% over the past year.
Muswellbrook, NSW
Muswellbrook is coined as the gateway to the Hunter Valley and is a popular spot for those working in the world-famous wine region. At only a two-and-a-half-hour drive from Sydney and a one-and-a-half-hour drive from Newcastle, this town is perfect for those wanting an escape from the city, whilst being close enough for work or convenience. With over 12,000 residents working in the coal mining, agriculture, renewable energy and horse racing industries, the region is ever-evolving.
So how much can you expect to pay for a property? The median price for a house in Muswellbrook is $485,000, which is an increase of 6.2% from the previous year. The median rental price for a house is set at $460 per week increasing from 2.2% over the past 12 months.
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Disclaimer:
Buyers and investors should consider conducting their own research and seeking professional advice before making any property purchases. The information enclosed has been sourced from SQM Research and the Reserve Bank of Australia and is provided for general information only. It should not be taken as constituting professional advice.
PropertyMe is not a financial adviser. You should consider seeking independent legal, financial, taxation, or other advice to check how the information relates to your unique circumstances.
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