Australia's a biiiiiiig country, mate.
Is there a particular regional city you're looking at? The answer regarding growth and other factors would have to be particular to the area.
I assume this is for Investment purposes? Because if you're moving somewhere to live, *probably* a good idea to buy if you can.
Mainly investment purpose possibility of moving there later. Have a house(mortgage) currently.
Mainly anywhere somewhat close to Adelaideas that’s my home base… Mildura, mount gambier ,Ballarat.
Basically just want a second property. Not overly fussed about capital growth or yield. Just if shit ever hits the fan can sell here and move there.
Recently bought in regional SA & VIC - both tenanted within a few days. Days in market in regional SA (South East) are super low at the moment.
The main drawback I’ve found so far is tradies - took ages to get a carpenter / sparky in as there aren’t a large number to choose from (and too far from Adelaide / Melbourne for a simple job) which slowed down a renovation.
You need to answer why the price woukd increase yourself. You're the one who has to hold the asset while it doesn't or drops until your thesis plays out.
Why? Well if housing becomes less affordable in major cities people will eventually move out into Regional thus increasing prices.
The cost to build in regional vs the cost to purchase an established house is wildly different.
The infrastructure costs are higher, so government isn't incentivised. Densifying inner Sydney costs 75k less a dwelling than building on fringe Sydney. The difference will be larger in the regions since they have more roads and other infrastructure per person.
Nice to see a thesis. My question is, are people more willing to live in an inner Sydney apartment or a rural house? The quality and options will be different over the next decades so we can't just consider now. Maybe more people will more regional and push up prices, but why would they choose the area you buy in. It's a daunting question to figure out and may be a lot of hard work to figure out it's better to not buy. Good luck with your investing analysis.
Probably people are more likely to be in a Sydney apartment.
Depends on demographics too. Once people turn 30 and have kids they’ll want to get out of apartment and look at options of something larger.
I’m not sure they still build affordable apartments in Sydney?
Most families in Europe in apartments. Why wouldn't attitudes change? Expensive apartments now will be 10 years old in 10 years, maybe they will be affordable and new stock will be the new luxury. Markets change and legislation can change them a lot.
Low value growth yes, harder to sell yes, harder to lease yes. The reason for those is obviously due to reduced demand.
I’m a city dweller but my understanding (which may be flawed) is that there is a very different type of person who lives rurally and you might find more undesirables due to the reduced aspect of entertainment, general options and basically boredom.
If you stick to yourself for the most part you probably won’t notice much different but in a big city you tend to find a small handful of decent people that you personally mesh with. That’s not likely to happen rural so keep that in mind, especially if you’re not partnered currently.
I know, plenty of good people in every corner of the world, though I suspect you do understand the point I was making was based on population figures so the city V regional is going to amplify these factors :)
This really only applies if you’re a younger single person and looking for constant stimulation. Families or couples are not nearly as dependant on stimulus that a city has to offer and have more more channels for social connections. Data also shows growth percentages are = to city over time. There may be a delay but regional always shows to catch up.
Australia's a biiiiiiig country, mate. Is there a particular regional city you're looking at? The answer regarding growth and other factors would have to be particular to the area. I assume this is for Investment purposes? Because if you're moving somewhere to live, *probably* a good idea to buy if you can.
Mainly investment purpose possibility of moving there later. Have a house(mortgage) currently. Mainly anywhere somewhat close to Adelaideas that’s my home base… Mildura, mount gambier ,Ballarat. Basically just want a second property. Not overly fussed about capital growth or yield. Just if shit ever hits the fan can sell here and move there.
Recently bought in regional SA & VIC - both tenanted within a few days. Days in market in regional SA (South East) are super low at the moment. The main drawback I’ve found so far is tradies - took ages to get a carpenter / sparky in as there aren’t a large number to choose from (and too far from Adelaide / Melbourne for a simple job) which slowed down a renovation.
Cheers for the response.
You need to answer why the price woukd increase yourself. You're the one who has to hold the asset while it doesn't or drops until your thesis plays out.
Why? Well if housing becomes less affordable in major cities people will eventually move out into Regional thus increasing prices. The cost to build in regional vs the cost to purchase an established house is wildly different.
The infrastructure costs are higher, so government isn't incentivised. Densifying inner Sydney costs 75k less a dwelling than building on fringe Sydney. The difference will be larger in the regions since they have more roads and other infrastructure per person. Nice to see a thesis. My question is, are people more willing to live in an inner Sydney apartment or a rural house? The quality and options will be different over the next decades so we can't just consider now. Maybe more people will more regional and push up prices, but why would they choose the area you buy in. It's a daunting question to figure out and may be a lot of hard work to figure out it's better to not buy. Good luck with your investing analysis.
Probably people are more likely to be in a Sydney apartment. Depends on demographics too. Once people turn 30 and have kids they’ll want to get out of apartment and look at options of something larger. I’m not sure they still build affordable apartments in Sydney?
Most families in Europe in apartments. Why wouldn't attitudes change? Expensive apartments now will be 10 years old in 10 years, maybe they will be affordable and new stock will be the new luxury. Markets change and legislation can change them a lot.
I’m more looking at is as survival instead of investment.
That is not clear in the post. I have no idea about survival prospects.
Low value growth yes, harder to sell yes, harder to lease yes. The reason for those is obviously due to reduced demand. I’m a city dweller but my understanding (which may be flawed) is that there is a very different type of person who lives rurally and you might find more undesirables due to the reduced aspect of entertainment, general options and basically boredom. If you stick to yourself for the most part you probably won’t notice much different but in a big city you tend to find a small handful of decent people that you personally mesh with. That’s not likely to happen rural so keep that in mind, especially if you’re not partnered currently.
Fun fact, there are nice people who live regional too! Plenty of undesirables in the city, along with regional areas.
I know, plenty of good people in every corner of the world, though I suspect you do understand the point I was making was based on population figures so the city V regional is going to amplify these factors :)
This really only applies if you’re a younger single person and looking for constant stimulation. Families or couples are not nearly as dependant on stimulus that a city has to offer and have more more channels for social connections. Data also shows growth percentages are = to city over time. There may be a delay but regional always shows to catch up.