Regional Investing Tips
31/03/2015 15:11 | Source:
If you don’t have a big budget to invest in largest cities, think about buying properties in regional towns with many advantages. However, it’s important to look for the right location to pour your money.

If your future property is located in an area prone to natural hazards like drought, flood or bushfire, make sure the location has a robust economy, population growth and strong employment prospects.

When you take a look at an area that is thriving economically, make sure its economic strength doesn’t focus on only one sector, such as agriculture or mining. You should avoid regions that are so dependent on a single driver. Such a region will become vulnerable if its major economic driver disappears someday. Remember that it may be a great risk to your investment. 

Don’t forget some seasonal influences such as tourism. For many local areas, it may be a wonderful economic and social buoy. However, if it dries up, it could seriously impact rental yields of your property. Tourism is an unstable factor for investment perspectives.

It would be better to look for areas where demand is poised to outstrip supply. In fact, this is less common outside of large cities, but not impossible to find. 

Take a look at market factors like how much discounting is occurring, auction and clearance rates. Of course, you need to know about yields and vacancy rates before investing in the area.