As a result, an increasing number of city dwellers are packing up their lives and escaping to the country. Recent Australian Bureau of Statistics (ABS) data confirms this, with the nation’s capital cities suffering a net loss of 11,200 people during the September 2020 quarter.
This is the largest quarterly net loss of people from the capital cities since ABS records began.
Unsurprisingly, many regional property values are now outpacing their capital city counterparts. According to CoreLogic, over the 12 months to January 2021, housing values across regional Australia grew by 7.9% – more than four times the combined capital city growth rate of 1.7%.
But that’s not all. Increased internal migration is fuelling competition for rental properties – so rents are up while vacancy rates are down.
And there are some stunning numbers to report.
For example, the median house price in Byron Bay soared by 37% in 2020 to reach $1.68 million. Weekly house rents over the 12 months to 21 February 2021 jumped 36.5% to $1,282.90.
But does that mean you need deep pockets to get a piece of the action?
No.
Start small, think big
If you spend too much you’ll be negatively geared, even with the record-low interest rates around. That means your investment will cost you each and every month.
In my book, that’s a liability – not an asset.
Rather start small, but think big. Because if you know where to look, you can buy a quality property for under $300,000. And at that price, your money can start working for you – bringing in a passive income from day one. On top of that, comes any future capital gains.
But you need to buy the right regional property at the right price.
What’s the right property? Look for:
- Land – because the property is a game of land and control
- Population growth – consider the local economy and employment opportunities
- Low rental vacancy rates – as that’s the key to low-risk property investment
Get it right, and you can start building wealth from the get-go. This is great for your mindset and pushes you to grow further.
However, all this is easier said than done – especially when you’re time-poor and live in a different state. Investors Dream can help. We work with you to identify and secure regional positive-cashflow properties at the right price. Book a call by filling in this online form.