My recommendation would be to stay away from investing in regional areas. I personally wouldn’t be investing, and I wouldn’t advise my clients to do so either. This is based on two things: the level of safety of regional property investment and securing optimal returns. Both of which I believe regional property doesn’t deliver on.
There are a few reasons why you would consider going regional:
I am sure there are a lot more reasons to invest in regional. The list could well go on for pages, however the one fundamental risk when investing in regional areas is their history and reliance on one stream to support the economy. Also referred to as ‘one trick pony towns’. A common term used by property experts. Mining towns are a great example of this. When mining is booming the town is going great guns, when the mining boom is over, the town is left high and dry and property prices fall through the floor.
If you are a first time property investor you want to be building equity and cash flow and therefore I would highly recommend only going regional if you are in need of a mini-break or it’s time to visit a long lost family member!
If you would like to talk Regional Property Investing, or anything and everything property, let’s connect.