🚨 These 9 Australian property markets could be among the biggest winners over the next few years. And some still offer houses under $500,000 with rental yields above 5%!
The Rent vs Buy Signal Investors Overlook
There’s one piece of property data that I think investors should be paying much more attention to.
Where is it almost as cheap to BUY a house as it is to RENT one?
Think about it.
When renters realise their mortgage repayments could be similar to what they’re already paying in rent, suddenly homeownership becomes much more attractive.
And when renters start becoming buyers, that creates additional demand for housing.
9 Regional Markets Worth Investigating
Here are 9 locations worth investigating:
➡️ Taree, NSW
➡️ Maitland, NSW
➡️ Muswellbrook, NSW
➡️ Swan Hill, VIC
➡️ Bairnsdale, VIC
➡️ Sale, VIC
➡️ Kempsey, NSW
➡️ Portland, VIC
➡️ Lismore, NSW
Now I’m not saying to blindly invest in these just because of this post. Heck, my clients aren’t investing in most of these, rather targeting even more promising areas.
But…
Maitland: $49 a Fortnight More to Buy Than Rent
Maitland: $49 a Fortnight More to Buy Than Rent
In Maitland, for example, the estimated mortgage repayment is just $49 per fortnight more than renting.
SQM Research has forecast growth of around 3% to 6%, but I believe there could be considerably more upside.
And some of these markets still offer rental yields above 5% to 5.5%.
Regional Australia's Housing Construction Problem
But here’s why I’m particularly interested in regional Australia.
Regional Australia has a major housing construction problem.
➡️ Regional areas account for approximately 35% of Australia’s housing requirements.
➡️ Yet they require almost 60% of the additional construction workforce needed to meet housing targets.
Why?
Because regional Australia already has a much smaller pool of skilled tradespeople.
That makes it disproportionately difficult to build enough homes to meet demand.
Migration Keeps Adding to Regional Demand
And then there’s immigration.
Despite all the political debate, net overseas migration remains almost 300,000 annually, according to the figures discussed, still above levels before COVID.
Many migrants settle in regional areas, including through visa pathways that encourage regional employment.
More housing demand + insufficient construction = upward pressure on property prices and rents.
Meanwhile, rising construction costs, labour shortages and higher financing costs could make the shortage even worse.
This is why I believe regional Australia could outperform many capital city markets over the next few years.
How to Choose the Right Regional Town
Of course, not every regional town is a good investment.
You still need to assess economic diversification, employment, population growth, rental demand, supply and the exact property you’re purchasing.
I would be particularly cautious about towns dependent on a single industry.
But the opportunity is there.
Quality Investment Property Under $500,000
You don’t necessarily need $800,000 or $1 million to buy a quality investment property in Australia.
In the right locations, there are still opportunities below $500,000, with attractive rental yields and potential capital growth.
And that’s where I believe some of the smartest investors are focusing their attention.
Book a Free Discovery Call With Realta with PK
If you would like to understand which markets our research team is currently active in and whether a property in Melbourne or elsewhere in Australia makes sense for your situation right now, book a free 60-minute Discovery Call with our team.
There is no obligation and no cost. Just an honest conversation about your goals, your budget and what the data actually shows about where the best opportunities are right now.
Co-Founder | The Educator & Mentor
I’m also a property investor with a $27m+ debt-free portfolio of residential & commercial property, generating over $300k+ net annual passive income.
I help people from all over Australia, by accessing a unique strategy that combines high growth high cashflow residential property, alongside highly profitable property development projects to help accelerate their passive income. I typically work with families, young over-achievers, and new Buyers Agents who want a predictable, DATA-led system to grow wealth and Passive Income.