The term remote investing is something bandied about more and more by property commentators, and for good reason; with in excess of a third of investors purchasing properties more than 200 kilometres from their place of residence, this is a very real phenomenon picking up pace, driven by the increasing appeal of region centres – creating an urban exodus, along with attractive rental yields these areas are returning.
With some key regional cities and large towns experiencing inter and intrastate population growth, rents are increasing, and in relation to purchase price, creating cash flow positive investments in many instances. There is also a different land tax structure in each state, and this can also be advantageous to investors, depending on location.
MCG Quantity Surveyors conducted a study into this trend and report that the average distance between investment properties and the investor, is increasing; with investors setting familiarity aside in exchange for potential.
Whilst this is not a specifically ‘new’ trend exclusive to 2020, the impact of the Corona Virus has played a hand in the acceleration of remote investments as viable additions to portfolios. Ease of access to online information about an area, and the depth of the information that can also be obtained, has facilitated the process, equipping investors with knowledge at their fingertips.
This coupled with professional advice from buyers agents and advisory services, like ourselves – Invest Approved has minimised risk, as well as providing critical information to potential investors about national hotspots.
As an increasing number of the white-collar workforce work from home, the attraction of regional towns and cities, particularly those associated with ‘lifestyle’, is on the rise. There is also significant public and private sector investment in infrastructure in many of these areas, which has been driven by accurate forecasting of population growth, and in turn also in response to the growth. These infrastructure works create employment and attract people to the area, who all need somewhere to live; hence, boosting not only demand for rental but prices.
Talk to us at Invest Approved about this trend, and how we can assist you to grow your property portfolio, enhance returns, and secure optimum future capital growth.