Could regional markets be the next investor hotspots?
Regional property markets across the South West are drawing fresh attention from investors. Here’s a look at why — and what to think about if you’re considering a regional investment.
Why regional markets are attracting attention
Regional markets can offer a different profile from capital-city markets. Factors that often drive investor interest include:
- Relative affordability. Regional properties are often less expensive than comparable properties in capital cities, which can mean a lower barrier to entry.
- Infrastructure investment. New roads, schools, hospitals, and transport links can make a regional area more attractive to residents — and to tenants.
- Lifestyle appeal. Regional areas with natural beauty, community feel, and amenity can attract sea-changers and tree-changers, supporting tenant demand.
- Local employment. Areas with strong local industries (mining, agriculture, tourism, healthcare) tend to have stable employment and tenant demand.
What to consider before investing regionally
- Do your research. Understand the local market, vacancy rates, rental yields, and growth drivers. Don’t rely on a single source.
- Talk to locals. A local real estate agent and property manager can give you insight that data alone won’t show.
- Factor in distance. If you don’t live in the area, you’ll need a reliable property manager. Budget for management fees.
- Get the loan structure right. Investment loans have different requirements to owner-occupier loans. We’ll help you structure the loan to suit your cash flow and tax position.
- Talk to your accountant. Tax treatment for investment properties (negative gearing, depreciation, capital gains) depends on your individual situation.
How we help regional investors
We’re based in the South West and we know these markets. We understand what lenders look for in regional investment properties, and we can help you present your application in the strongest possible way.
Book a free chat with James if you’re thinking about a regional investment.
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General information only. Talk to James for advice tailored to your situation.