A huge chunk of Australia’s investment capital has always flowed to Sydney, but this trend is about to change. Today, property investors are rushing to buy houses for investment in regional NSW. This investment boom peaked in 2020 when property prices rose by almost 10 per cent. If you, too, want to buy a house in regional NSW, here are the potential benefits as well as the process of investing in the area.
Benefits of Buying a House in NSW
Here are some of the reasons why you should buy a house in regional NSW.
Relatively Low Cost of Investment
Although the prices of houses in regional NSW are climbing, it is still cheaper to buy houses there than in the metro areas. If the high prices of houses in Sydney have been putting you off, this is your chance to own a piece of real estate in NSW. Nevertheless, you must conduct extensive market research to find the most affordable properties.
Attractive Cash Flow
When you buy a house in regional NSW, you can look forward to some of the highest rental returns in Australia. For instance, Cairns has enjoyed the highest rental rates in Australia for the last seven years, currently estimated at around A$260 per week. You are unlikely to get similar returns if you buy a house in the metro areas, such as Sydney.
Access to Better Infrastructure
There has been a deliberate effort to revamp and upgrade infrastructure in regional NSW. New motorways and highways are popping up all over regional NSW, making it easier to visit the city. With the government planning to invest at least A$100 billion on infrastructure projects over the 2019-2029 period, you can rest assured that the price of your real estate investment will increase.
How to Buy a House for Investment in Regional NSW
The process of buying a house in NSW involves a few straightforward steps:
- Come up with a budget that your savings and income can support. This ensures that you can pay your mortgage even when the house doesn’t bring in any rental returns.
- Scrutinise every mortgage loan that you are qualified to receive. It is advisable to apply for a loan with the lowest interest rates and the longest repayment period.
- Make a list of suburbs with houses that are within your price range. You can also visit various websites with categorised house listings.
- Narrow the list to four or five houses. You can then send your offer to each seller.
- If you receive a favourable counteroffer, buy the house and sign the contract.
- Move into the house and make necessary repairs. This is also the right time to install smart home features.
- Put the house on the market and start receiving rental applications.
However, you can skip this entire process by using the services of a local real estate agent – R & R Property.
Key Takeaway
It is evident that buying a house in regional NSW is a smart investment move. If you make the investment now, you will start reaping the benefits immediately. Contact us for more information.
