Managing risk is an important strategy, whether buying property for lifestyle reasons or an investment
So much media attention, research and focus is placed on our housing markets in relation to the big cities and their usually sprawling suburbs.
This makes a certain amount of sense as most Aussies seem to reside within the big cities, their outlying areas and their immediate coastal locations.
However when you review the statistics published in 2015 by the ABS, it actually brings the importance of regional housing markets to the fore and reveals a few little surprises.
Yes in most states there are more residents in their capital than elsewhere, but not all and that variation gap again is not as predictive as you may think. Queensland bucks the trend with 2.3 million residents in Greater Brisbane while the rest of the state has a slightly higher count at 2.4 million.
Very roughly, across Australia there are in excess of 7.5 million residents of regional markets. Clearly this is a sizable portion of our population all of whom have a desire to live, own and rent in regional real estate.
So what is regional? For me there are various grades of this market category and along with those grades come a range of risk factors for you as a buyer to consider. Recent CoreLogic data found gains in certain regional markets where big-city prices had created a wave of property demand and price rises as buyers moved further afield seeking value, affordability, and the next growth area – the Gold Coast is a positive example. Buyers in a non-city location need to be aware that the risks of purchasing property can be vastly different and that the more remote and further away you go the higher the risk can be.
Lifestyle changers who buy regional property should be sure they want to make the life change then cash in or buy and enjoy outstanding affordability. For investors it is without argument, in my opinion, the higher risk option – but that risk can be managed with detailed research and the right approach and strategy.