10 Jul Stigma attached to buying in regional areas
Stigma attached to buying in regional areas
It is understood that a lot of people who live in big cities do have a prejudice. You are going to have ‘ratbag’ tenants in Sydney just as much as you’re going to have ‘ratbag’ tenants in Broken Hill. You’re going to have maintenance issues in Sydney just as much as you are in Broken Hill. There is not a big distinction there except the quality of the property.
Comparing Regional Areas to Higher Growth Areas
By going through and having a look at a comparison between buying something in a regional area where the growth is going to be negligible, and buying something in maybe a higher-growth area and your yield is perhaps neutral, you’ll see what is better.
It obviously depends on your circumstances and it depends on your time frame because if your time frame isn’t tomorrow, it’s in a few years time, you might be better with the property that’s got a bit more growth in it, because that property will have a higher increase in the rents than the one in the regional areas unless there’s an economic reason to force it. There are still a lot of pockets around Australia and New Zealand that you can chase where little micro economic things are happening that force the prices and the yields in those areas. It’s normally industry.
We always recommend that you seek professional advice as this blog is for general information only