Consider an investment tree-change?

Canola FieldsWhen it comes to buying property most investors gravitate to our cities and suburbs.
But as some rental markets slow across the country, better value properties with longer-term capital growth might just be found in a regional investment tree-change.
Statistics released by CoreLogic RP Data last month reveal flat conditions in both cities and country areas – but the group also singled out modest pockets of growth in regional centres. 
Regional Tasmania was identified as the strongest performer on a year-on-year basis, with house rents
rising 2 per cent and units by 4.5 per cent.
Victoria’s regions recorded the second highest house rental growth at 1.8 per cent on a year-on-year basis,
while New South Wales and Queensland performed well on the unit front, recording 3.2 per cent and 3
per cent rental growth respectively.
Northern Territory and Western Australia were in negative territory on both fronts.
For investors considering a longer term investment, property analysts Hotspotting identified their top
capital growth areas earlier this year – and they were all in the regions.
In its Capital Growth Superstars report, which examined long-term capital growth rates for every suburb
and town in Australia, Hotspotting identified 20 best performing regional centres, which all had growth
rates ranging from 10.2 per cent to 20.7 per cent per year.
So, when it comes time to considering your next investment, you might consider a drive to the country.
And, why not – national petrol prices have also hit an eight-month low!
 

Snapshot – Highest Rental Growth by Region: September 2015 quarter

Source: CoreLogic RP Data

Highest rental growth regions (houses)
  • NSW: Northern rents increased by 3.3% over the quarter to $310/week
  • Vic: Wimmera rents increased by 3.3% over the quarter to $238/week
  • Qld: West Moreton rents increased by 5.0% over the quarter to $318/week
  • SA: Eyre rents increased by 0.9% over the quarter to $288/week
  • WA: South Western rents increased by 3.1% over the quarter to $330/week
  • Tas: Southern rents increased by 1.9% over the quarter to $265/week
Highest rental growth regions (units)
  • NSW: Mid-North Coast rents increased by 3.2% over the quarter to $320/week
  • Vic: Wimmera rents increased by 2.5% over the quarter to $205/week
  • Qld: South West rents increased by 11.8% over the quarter to $308/week
  • SA: Outer Adelaide rents increased by 4.0% over the quarter to $260/week
  • WA: Central rents increased by 5.6% over the quarter to $265/week
  • Tas: Mersey-Lyell rents increased by 4.5% over the quarter to $230/week
All of the advice provided in The RentCover Report is general advice only and has not taken into account your personal circumstances.
 
 
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