what about the low key property investor

Yes it is more expensive but as you probably already know land appreciates and house deprecates.

So if you have 2x 250k regional properties being 50k land with a 200k house on it in theory you have 100k land and 400k house.

Where as if you have a 500k capital property with a 300k house and 200k land you in theory have double the land value of the smaller cheaper houses and it should increase by more over the years.

As there is more demand for the capital property and migration increasing and jobs education and amenities better in the capital than regional this is further way they will increase in value more than a regional which don't have the same demand and might only have 1 or 2 main industries.

I don't know about that, I understand Melbourne has a growth rate of 1.8%, some regional areas have a growth rate 0f 6% and plenty of migrants and 0.5 %vacancy, a much higher demand than some capitals that have a vacancy of about 4%. In any area there will be location that are desirable and locations that aren't a few hundred metres can be the difference.
 
I don't know about that, I understand Melbourne has a growth rate of 1.8%, some regional areas have a growth rate 0f 6% and plenty of migrants and 0.5 %vacancy, a much higher demand than some capitals that have a vacancy of about 4%. In any area there will be location that are desirable and locations that aren't a few hundred metres can be the difference.

Yes some can get big gains and they can also get big losses, you can also get big gains in some Melbourne suburbs.

Without knowing which town you are talking about I picked two random locations being Shepparton and Preston (I do not live in or near Preston);

Shepparton has been flat over the last 8 years, even if you bought at the lowest median year (2009) for 217k today it is 240k. http://www.realestate.com.au/neighbourhoods/shepparton-3630-vic

Preston, in the same time period the median house has basically doubled.
http://www.realestate.com.au/neighbourhoods/preston-3072-vic

For Preston in 2009 if you bought median house price was 525k and today 689k.

Even if you bought 3 properties in Shep in 2009 giving a total investment of $651k the houses today would be 720k without any fees or rates etc etc profit 69k

Compared to Preston buying 1 house in 2009 (525k, which is 126k less initial outlay) and sold for median price today 689k or profit of 164k which is about 100k more than buying 3 properties in shep.

If you are going to pick the best performing regional town you should also pick the best performing suburb of Melbourne. End of the day up to you which way you go but there is a lot more risk in regional towns. E.g. Broken Hill http://www.realestate.com.au/neighbourhoods/broken hill-2880-nsw has lost money since the boom ended in 2008 and is only slightly ahead of the price in 2006.
 
Back
Top