Theresearchconcentratedonthethree
easternstatesforacoupleofreasons.
“First of all, the question of affordability
–whichiswhatthereportismainlygeared
around – is more of a problem on Australia’s
east coast. Secondly, we wanted to ensure
that regional areas nominated fitted into
the selection criteria and we found that
there was a larger volume of those in the
east coast states,” says Mardiasmo. (See Selec-
tion criteria.)
Anyone looking to buy a home or invest
inresidentialrealestateinregionalorouter
urban areas should not only pay attention to
short-term price growth, says Mardiasmo.
“Lookatpricegrowthoverthepastfiveto10
years. It partly depends on your motivation.
Some investors are out to make a quick buck
but most home buyers and investors want
stable, positive price growth indicating con-
tinuing capital growth.”
Checking vacancy trends is especially
important for investors, but also some home
buyers will eventually move and may want
torentouttheirproperty,sochoosingareas
with enough rental demand is important,
she says.
Also tied to rental demand is jobs growth,
so find out from the local council what future
developments there are in the pipeline. Some
councils hold regular sessions where they
outline their vision for the next 10 years.Beyond the
hotspots
R
egionalareasprovidesome
of the most pleasant places
to live in Australia, with open
spaces, clean air, limited
traffichassles,beautifulvistas
and, best of all, houses that cost a fraction of
thoseinthecities.Butthedownsideisthat
manyofthesetownsandcitieshavealackof
jobsandlimitedgrowthprospects.Andfor
retirees some also have limited health services.
Ofcourse,thisisnottrueofallregional
areas,ashighlightedinanewreportfrom
PRDnationwide, the Top 10 Affordable Major
Regional Areas.
To assist those seeking an affordable prop-
erty, the report highlights regional areas across
Queensland,VictoriaandNSW,saysDiaswati
(Asti) Mardiasmo, national research manager
at PRDnationwide. “These key areas identified
notonlyhighlightpriceaffordabilitybutalso
solid fundamentals for sustainable growth.”
The areas are Toowoomba, the Fraser Coast
and Ipswich in Queensland; Tamworth, Mait-
land,WaggaWaggaandtheCityofShoalhav-
en in NSW; and Ballarat, Greater Bendigo and
Shepparton in Victoria.
“As capital cities, especially Sydney and
Melbourne, continue to see property price
growth and inflation levels beyond the stand-
ardwageincrease,thebattletoenter
thepropertymarkethasbecome more diffi-
cult,” says Mardiasmo.
STORYPA M WALK LEY
PROPERTY AFFORDABILITY
Regionalcitiesandtownsareanattractive
alternative for first-time buyers
“Remember, no jobs, no growth,” Mardiasmo
points out.
Ifyousticktoareaswithgoodconnectiv-
ity to major hubs – especially within a two-
hour commute to major centres like Sydney
or Melbourne – these should flourish. Make
sure there is reliable and pleasant public
transportavailable,ifnotnowatleastplanned
forthefuture,shesays.
Retirees moving to regional areas will need
to make sure there are reliable health facilities.
Thegoodnewsisthatlotsofregionalhospi-
tals are getting an upgrade, says Mardiasmo.
Families with children will pay special atten-
tion to educational and recreation facilities.
“Theareaswehavechosenarenotin‘Woop
Woop’,theyallhavegoodamenitiesincluding
entertainment and shopping. They are high-
ly liveable,” she says.
Withmortgageratesatanall-timelowand
thelikelihoodthatthesewillrise,buying
regional or outer-urban property means less
of your disposable income will go towards
paying the mortgage, which means more to
sustainabetterlifestyle.Selection criteria
- Affordability–areaswithamedianbelow
the average loan for each respective state. - Property trends – indicative of future
growth such as median price, low vacancy
rates and good rental yields.