“Investors need to consider the advantages of focusing on property investment in regional Australia, which can present a win-win-win situation: lower entry prices, better rental yields and great prospects for capital growth, if they do their research and identify the best places to buy”.
This message from real estate writer Terry Ryder in Property Observer shows strong support for the affordability and returns of investment in Bega. While it might make sense at first look to snap up bargains at the lower end of the market, there have been substantial returns on investments lately in the medium price brackets as well.
The sub $330k market has a range of houses to choose from with good rental returns. There is also a strong sales demand in this price range from second or third time buyers looking for bigger properties and cashed up retirees and tree-changers who have sold up in the cities.
In the past 18 months Bega has seen returns of 5.7% on a $330K spend. Investment properties in this price range should rent for upwards of $360 per week.
While the big cities are seeing higher figures than this the market isn’t seen to be as stable as rural and regional property investments.
“The average for regional Australia includes every depressed or drought-affected country town on the continent. It includes all those locations impacted by the decline in the resources sector or by the growing use of workers camps to accommodate fly-in-fly-out workers, which has created price decline in specific areas.
The generalised figure is dragged down by all those negative situations and disguises the locations which don’t fit the apparent norm,” says Terry Ryder.
So while property investment returns might be tempting in Sydney or Melbourne, it’s worth your while to dig a little deeper and look at the mid range market of Bega.