Property Investment In Regional v’s Metro Areas
Before investing in property, make sure that you have taken all necessary precautions.
Before investing in property, make sure that you have taken all necessary precautions.
When considering investment in property, it is important to take all necessary precautions before proceeding.
When investing in property, you will have to make many choices and considerations. For example, you can choose between a house or unit, off the plan or a character classic. However, perhaps the most important decision you could make when buying an investment property is deciding on location and weighing up between metro and regional locations.
In general, properties close to the CBD have strong capital growth because there is often a growing demand for those areas. Metro areas also tend to experience lower rental yields than regional areas because of the high management and maintenance costs. However, in some cases, apartment owners can experience high capital growth if they invest in the right property.
When purchasing real estate in a metropolitan area, there are several factors to consider. These include what sort of properties are popular, access to public transportation, rental demand and which suburbs are the place to be. Speak to property managers and buyer’s agents to find out what’s hot and future predictions.
In many cities, you can choose between buying existing houses and new properties. If you’re considering a new build, be sure to research the developer and builders.
Investing in regional centres should be considered a long-term decision.
Investing in regional properties provides higher rental yields and the opportunity to eventually retire in your investment property. However, because the risks are greater when investing in regional areas, it is important to do your research before buying an investment property.
When considering an investment in an area, consider the recent auction clearance rates, rental yields, and vacancy rates. These numbers will help you get an idea of supply versus demand in the regional area you’re considering. A high rental yield could potentially close the gap between your outgoings such as your mortgage or ongoing costs, and your investment income.
Look for areas that offer infrastructure, such as universities and new amenities. These areas tend to have a healthy employment market and strong rental demand.
When looking for a home to purchase, consider using a buyer’s real estate agent who is familiar with the local area and can inspect properties for you if you do not live nearby. Also find a good local property manager who can help you find tenants.
When seeking an investment property, your affinity with the area does not have to be the sole basis for your decision.
When you purchase an investment property, you often take a more pragmatic approach to the decision. You want the location and the property to appeal to the rental market. Your investment strategy will play a part in your decision between metro and regional areas.
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