Property Investment in Australias regional centres – Townsville

Regional investment Sherlock Homes

How good is regional investment?

Property investment is a long term money-making strategy whereupon the goal is to increase net wealth. While this strategy has been around for a very long time, it is still very easy to make a bad decision which can have devastating effects on your overall goals.  

Location can be one of the biggest contributors to your success or failure.

Sherlock Homes regional investment townsville

City Centres

It is common to hear at a family BBQ or event that Uncle Bob has bought an investment property on the Gold Coast, that is a 60sqm unit. We all nod sagely at his wise decision. 

But is this actually a wise decision? 

We do have 80% of all of Australian housing condensed into 3 major capital cities, true, but does that necessarily mean that that is the best place to buy? 

Condensed living

While it is easy to rely on the fact that our city centres are the best investment option due to popularity density, infrastructure investment and potential growth, but that does not mean that they are the ONLY wise investment choice. 

In fact, in our post-covid world, we are see dramatic increases in work-from-home capabilities, which is having the flow on effect of people leaving our inner city hubs.

What does that mean for investment?

Trends are currently showing massive explosions in demographic shifts, population growth and demand towards our regional centres. 
standard investment locations are seeing stagnating growth indicators.

sherlock homes regional investment

Why Townsville?

 

Now if you are going to look for better than average responses you will need to be prepared to look wider afield with better information in your decision making.  There are locations that we wouldn’t recommend where smaller towns and cities have underlying economic factors making them more susceptible to the boom bust cycle. 

 

Think of single factor towns such as we have seen in historical manufacturing, mining or export locations.  While these factors are travelling well it can be exciting (peak rents in Moranbah achieved $3000 per week) there were plenty of investors that brought in at the peak only to have their investments crash post boom.

sherlock homes regional investment

Looking regionally there are some stand our locations.  It comes down to your personal strategy but the city of Townsville has a multitude of economic drivers and a long history to continual stable growth.

 

 

Investing in solid property that meets the local needs and will provide years of stable performance is the goal for most of our clients.  If you look at an established inner city suburb North Ward you will find that there has been quite some variation across a 5 year period in average property pricing but demand for rentals has remained constantly higher than the market can supply.  For well maintained properties in this suburb there is strong demand and great rental yields to be found. 

 

 

sherlock homes

When we compare these results to the typical results we can expect from our major markets (Melbourne, Sydney, Brisbane), regional investment shows that the barrier of entry is lower yet the returns can be significantly higher. Why wouldn't you consider the regions as part of your investment strategy?

sherlock homes

1 thought on “Property Investment in Australias regional centres – Townsville”

  1. Thanks for your input I have recently purchased in the regions and there are some gems to be found. I really appreciated your support to take advantage of this opportunity.

Leave a Comment

Your email address will not be published. Required fields are marked *