Regional property is becoming increasingly popular with owner-occupiers and investors alike. If you’re looking to purchase an investment or move to a regional location, here are some key things you might want to consider before taking the plunge.
Research the location
Like with any major purchase, it always pays to do your research first, especially when it comes to something as fundamental as location. Whether you already have a preferred location or are deciding between several areas, here are some questions to consider:
Amenities
Does it have all the amenities you’ll require such as shops, parks, hospitals, sporting facilities, schools etc.
Commutability
With many office workers now required to attend the office for some or all of the week, is it close enough if you still need to commute to work?
Lifestyle
Whatever lifestyle change you’re looking for –a slower pace, proximity to water or somewhere remote to escape to – do your research to ensure the location will suit.
Climate
Research the location’s weather and climate so you know what to expect beforehand – whether that be higher or lower temperatures, rainfall or humidity than you’re used to. Keep in mind that the climate could affect your enjoyment of a new area until you’ve adjusted to the new conditions.
Infrastructure
Are any significant infrastructure projects being planned? Infrastructure projects in the works like major transport, health or education facilities can indicate a growing region.
A vibrant economy
A strong local economy and employment options are important. Areas close to major regional centres are likely to have access to several strong industries and employers, which helps keep rental vacancies low and demand high.
Does the area attract families?
Areas favoured by families are usually well-served by education, sporting and medical facilities, and enjoy a stable population with families staying put for their children’s schooling. This can often mean strong competition and prices, providing investors with a stable income and opportunities for future growth.
Look into government assistance schemes for buyers
If you’re looking at buying regionally, check if you’re eligible for the federal government’s Regional First Home Buyer Guarantee scheme, which allows buyers to purchase a regional home with as little as a 5% deposit without paying Lenders’ Mortgage Insurance.
Make sure the area isn’t too affordable
Affordability can be a big drawcard for regional buyers, but beware of areas that appear too cheap. This could mean a lack of amenities, a dwindling population or low demand, making renting or selling much harder down the track. Do your research to check the price isn’t too good to be true, paying particular attention to average rental yields and vacancy rates.
Due your due diligence
No matter how much of a bargain a property may seem, never buy anything without physically inspecting it and getting independent building and pest reports. It’s also important to visit the property’s surrounding area and get a feel for how vibrant the town centre is. A lot of vacant shops can be a sign of economic or population decline in an area.
Think beyond holidays and retirement
If you are considering buying where you would like to holiday or retire, remember that tourist hotspots can be seasonal and easily fall out of favour. Instead, it’s better to choose your property based on solid fundamentals overall, allowing you to afford to holiday or retire wherever you like.
Consider land or off the plan property
With many regional areas seeing an influx of buyers which is driving prices and competition for existing properties, you could also consider purchasing land or an off the plan property within a regional development.
As Belle Property Byron Bay Principal, Braden Walters, explains “With strong competition and high prices in some regional hotspots, we are seeing increasing numbers of buyers looking to new developments to secure a foothold in the market. For example, our unique Lennox Rise development in Lennox Head offered a range of land and off the plan property options for buyers looking for a sea change, attracting huge interest and selling out in record time.”
Braden is currently appearing in Channel 9 reality tv show, Dream Listing: Byron Bay, which takes a deep dive into Byron Bay’s supercharged regional property market, where the average house price is $2.8 million.
Read more about the buying process and search our current homes for sale. For expert buying advice speak to your local Belle Property agent today.
