Property Investment Tips: What to look for in regional investment real estate

By the resi financial blog team, 25 March 2014

What to look for in regional property investment

If you're considering property investment in the near future, the natural inclination is to head towards large, sprawling metropolitan areas. However, a number of states are seeing their regional areas begin to pick up. Whether due to resource industry growth or population expansion - now could be a great time to consider regional investments

With this consideration, here are some things to think about before committing to property in a regional area.

Investigate the incidence of extreme weather

Looking for property - investment or otherwise - in a region prone to extreme weather like storms or fires could be an expensive option to consider. Be ready to pay for damages and repairs for these properties, especially during the scorching hot summers. 

Thriving economy 

Another thing to consider is whether or not the city has a growing economy. This is an extremely attractive point for most regional towns, especially for those big on mining and agriculture. Depending on the strength of these industries, people could be willing to relocate themselves while chasing an income. 

On the other hand, you want to make sure the town hasn't pigeonholed itself with only one big industry or source of income. In the circumstance that something occurs and prevents this from being a profitable industry, you could find yourself the owner of a property that no one wants to rent. 

Demand over supply

As with any investment, looking into regions that have a higher demand than supply will help you maintain a strong upper hand over potential tenants, ensuring your property is always full and profitable. While this can be harder to find in regional communities, research will help you discover hidden gems across the nation. 

Furthermore, doing research into the regular statistics (auction clearance rates, median price, etc) will reinforce your decision and give you the confidence needed to proceed. 

Categories: Home Loans, Property Investment