Australia property investment: Affordable regional towns where house prices are at record highs
Loading
Sydney-based mortgage broker MortgageWorks director Anthony Roddy has been fielding demand from property investors looking at affordable regional towns with strong rental returns.
'I've seen an explosion of [the number of] clients – and I would see this conversation is so much more prevalent now – where a client has engaged a buyer's agent, and they're looking at areas in regional Victoria, regional WA, regional Queensland,' he said.
'They're looking for lower entry point, higher yield, rentvesting type, buy as many as you can as quickly as you can. And they've had some success.'
He said they are looking at cheaper price points than in capital city markets, and for higher yields that will reduce the amount of cash they have to put into the investment each month.
He advises clients looking at regional areas to check there is good infrastructure and services coming to the town soon, and thinks it's preferable for investors to choose an area with a slightly bigger population. But there is a limit to his influence with clients choosing this strategy.
'When you're in a bigger population, you've got better property managers, you've got a selection of tenants, you've got competitive pressures when it comes to prices,' he said.
'I'm happy to just shoot the breeze with you, but really my job is the finance.'
Geelong-based Matt Turner, partner at GSC Finance, has also been trying to make sure clients understand the risks of property investment in a high interest rate environment which has constrained buyers' budgets. He points them to precedents such as the mining boom and bust in WA, in which some sellers lost money.
Loading
'There's always clients looking for value, and especially when borrowing capacities are lower than what they have been,' he said.
'We do have some clients that are on a fairly aggressive wealth creation strategy, and they are utilising investment specialist buyer's agents that are recommending different places.
'We do try to educate them about those risks.'
In northern NSW, Johnston Donoghue director Luke Johnston has been fielding renewed demand from property investors as interest rates fall. Boggabri topped the state's league table, and nearby Gunnedah, where the agency is based.
'People can get into somewhere around Boggabri with a 6 to 7 per cent return on an investment property, because it's a lot closer to a lot of the mining work that's getting carried on,' he said.
He notes the area has a strong economic base due to both the agricultural sector and the mining industry, which offers well-paid jobs to school leavers.
'It's a fairly vibrant little town, both Boggabri and Gunnedah. We've got a lot of high income earners here.'
In Victoria's south-west, Homeseeka Real Estate director Daryl Kenna, based in Warrnambool, has seen prices hold strong in nearby Terang, set in an established farming area.
He has been selling Terang homes to a mix of investors and to people moving there from Warrnambool. But inquiries from buyer's agents acting for investors have been pouring into Warrnambool.
He notes the reduction in cost of V-line train travel from Melbourne, as Terang is on the rail line, as a drawcard, along with infrastructure spending and many homes being renovated.
'It's a beautiful town,' he said. 'It's a fantastic little community.'
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles

Herald Sun
2 hours ago
- Herald Sun
SA Premier's Business and Export Awards
Don't miss out on the headlines from SA News. Followed categories will be added to My News. The company behind a revolutionary skate-like rehabilitation device – founded by former Adelaide Crows club champion Matthew Liptak – is among the finalists in this year's South Australian Premier's Business and Export Awards. MAXM Skate is one of more than 50 finalists in this year's awards, which recognise the contribution of local businesses to the social, environmental and economic wellbeing of the state. It is one of four companies named as finalists in both the business and export categories, putting it in the running for the two major awards – the South Australian Business of the Year and the South Australian Exporter of the Year. Almondco Australia, Mayne Pharma and payments start-up MyVenue – which recently secured a multimillion-dollar investment from US venture capital firm Greater Sum Ventures – are also finalists in both the business and export categories. The MAXM Skate product is a rehabilitation device and digital program for those recovering from knee surgery and injury. The Adelaide-based company already supports patients in more than 26 countries and recently launched a $5m capital raise. This year's 28 award categories celebrate the achievements of a variety of businesses including emerging, regional, family and Indigenous enterprises. Winners across 13 business award categories and 15 export categories will be announced at a gala event in August, with winners of the export categories entered as finalists in the Australian Exporter Awards held in Canberra in November. Last year's major award winners were artificial intelligence-based risk analysis company Fivecast and QuantX Labs – a developer of high-precision timing devices used in major defence and space projects. South Australian Business Chamber chief executive Andrew Kay said the calibre of nominations was 'exceptionally strong' again this year. 'It is always a challenge for the judges to select the finalists from so many high quality applications,' he said. 'It reflects the breadth of high achieving businesses operating here in South Australia and reinforces why the Premier's Business and Export Awards has quickly built a reputation as the pinnacle of business awards in our state.' The awards will be presented at a gala dinner on August 29. Adelaide start-up's massive US payday Originally published as SA Premier's Business and Export Awards - finalists revealed

News.com.au
8 hours ago
- News.com.au
Vice Chair Tim Hale has been announced as the new chairman of the Australian Turf Club
Current vice-chair Tim Hale has won a spirited vote to become the new chairman of the Australian Turf Club (ATC). Joining Hale in the executive reshuffle is Caroline Searcy who will assume the newly vacated role of vice-chair of NSW's premier race club. 'The Board of Directors of the Australian Turf Club has this evening elected Tim Hale SC as Chairman,' an ATC statement read. 'Mr Hale has served on the ATC Board since February 2021 and brings extensive legal expertise, governance experience and a long connection to racing.' The appointments follow the decision by Peter McGauran to step down from his post as chairman prior to the expiration of his current term in January next year. McGauran, who has served on the board since February 2022 including three years as chairman, said he made the decision to vacate the role 'aware of the challenges for the ATC ahead' adding that a new chair 'would provide a renewed focus for the club's future and its members'. The outgoing McGauran was a staunch advocate of the failed bid to sell Rosehill Gardens saying he 'remains convinced it was a lost opportunity for the club and wider racing industry.' 'I am grateful to the 44 per cent of ATC members who voted in favour of the proposal (to sell Rosehill),' McGauran said. 'I believe history will judge the decision to pursue the vision as having been the right one.' But while McGauran was spearheading the mooted $5 billion sale, Hale was in strong opposition from the outset, a position he made clear at the highly publicised Upper House inquiry in August last year. Hale's ascension to chairman of the ATC follows a 4 ½ year tenure on the board which has seen him serve as vice-chair since August 2022. Last November, he was successful in being re-elected for a further four-year term. McGauran's departure will see the ATC Board function with six committee members in the interim. The ATC Board comprises seven directors, four elected by ATC members while three independent directors are appointed by Racing Minister David Harris on the recommendation of a selection panel. With McGauran's place a Government appointment, it will be the role of Minister Harris to set about identifying a replacement.

News.com.au
8 hours ago
- News.com.au
Nacim Dilmi to succeed Sara Ryan as head trainer at Domeland
Former Godolphin assistant trainer Nacim Dilmi has been announced as the new head trainer for Domeland, taking the reins from Sara Ryan. French born Dilmi, 37, has spent the past eight years working for Godolphin Australia, most recently heading up the operation's Melbourne stable under James Cummings. Following Godolphin's decision to dissolve its private training model at the end of this season, Dilmi was offered numerous roles at prominent stables in Melbourne and Sydney but said the opportunity to lead Domeland into a new era of success was irresistible. 'I've always wanted to be a trainer and with James Cummings going to Hong Kong, it was the right time for me to step up,' Dilmi said. 'When Domeland rang me to offer me the job, it was really exciting. 'You always know when their horses are racing, and you can spot their red and yellow colours a mile away. I've been watching most of their runners and Domeland have some exciting horses that I'm looking forward to getting my hands on.' Domeland managing director King Cheng said he was thrilled to secure a trainer the calibre of Dilmi. 'We're incredibly excited to welcome Nacim to the Domeland team,' Cheng said. 'He brings world-class experience from Godolphin and will build on the strong foundation set by Sara over the last couple of years. We believe Nacim is the right person to guide our stable into its next chapter.' Dilmi will link up with Domeland on August 4, taking over from Ryan who will establish her own public training venture. During her time as Domeland's head trainer, Ryan trained more than 50 winners of almost $6.5 million in prizemoney. 'I'm incredibly grateful to Domeland for giving me the opportunity to launch my training career,' Ryan said. 'It has been a rewarding journey, and I'm looking forward to the next chapter and new challenges ahead.' Domeland's stable features in excess of 50 registered horses, with facilities including 35 boxes at Wyong racecourse and a 260-acre Kulnura property that features a 3000m grass track.