The one thing that doesn’t change about the property market is investors continually seeking the best opportunities to maximise their returns and first home buyers hoping to secure a foothold on the property ladder. At Teach Me About Property, we believe regional property is one of the most promising entry points for both, offering affordability and growth potential that outpaces some of the metropolitan markets.

Prices Are Still Reasonable

One of the biggest reasons to consider regional property is the affordability factor. Median property prices in these regions are significantly lower than in major cities, making it easier for first home buyers to save for a deposit and obtain financing.

Recent reports from CoreLogic found that for combined regional areas, the median house price remains just above $626,888; meanwhile capitals like Brisbane now sit around $843,231 and Sydney around $1,156,020. In some cases, you can buying the same home – by size and style – for $500,000 less just by purchasing in a regional area. This forms part of what we like to call the Property Buying Triangle which you can read more about in our recent article where we explore where to compromise; property type, price or location.

For first home buyers, we’ve developed the TMAP2STEP strategy, which asks you to compromise in one of the above areas; buying a more affordable property, waiting for equity to increase, and moving to your dream home in the future. A home in a desirable regional areas, with a more reasonable price point, can reduce the initial deposit requirement and provide an entry point at your borrowing capacity.

High Growth

Regional property areas are not just affordable; they are also offer excellent growth prospects. Many regional markets have demonstrated impressive growth, with the whole of Regional Australia rising 2.1% in this year’s first quarter. Investors looking for high returns on investment (ROI) should pay close attention to these areas.

Take, for example, regions like Granite Belt and Townsville, Queensland have experienced upwards of 17% growth this year; Bunbury in Western Australia has exploded 22%; and Richmond and Riverina in New South Wales are up 10% and 13% respectively. These areas have benefited from a growing population, high demand and, consequently, high growth in property prices. Investing in such high-growth regions can yield significant capital gains over time.

High Demand

Another advantage of investing in regional property is the strong rental income potential. With increasing migration to regional areas driven by lifestyle changes and affordability, the demand for rental properties is robust. This demand translates to higher rental yields and consistent tenancy rates.

“Annual rental growth across Regional Australia continued to accelerate, with rents rising 6.3% over the 12 months to April, up from 4.9% over the year to January. By comparison, annual rental growth across the combined capitals eased from 9.6% to 9.4%” CoreLogic, 2024

This strong rental income can provide a steady cash flow, making regional properties a solid addition to any investment portfolio.

Find Your Entry Point

Regional property presents a unique and advantageous opportunity for both investors and first home buyers alike. With reasonable property prices, high growth potential, and strong rental incomes, these areas offer a compelling alternative to the often overpriced urban markets. By considering regional properties, you can secure a more affordable entry point onto the property ladder and enjoy the benefits of higher returns on your investment.

For First Home Buyers: If you’re a First Home Buyer with a limited deposit and difficult borrowing capacity, think outside the box and outside the cities. Regional property can offer you a great opportunity to jump onto the property ladder sooner and buy your dream home later.

For Investors: The numbers speak for themselves. The return on investment (ROI) and rental yields on regional properties are great ways to expand your portfolio. Contact us today to get started.