The advantages they provide are numerous. There’s a wide scope for buying ridiculously affordable property. The median house prices in some Australian towns are well under $150,000, and the quality of property you can expect to buy is often quite high.
The reality of rural areas is population growth is often slow and capital growth can be flat for years. An interesting point of discussion though is what type of investment suits you?
The high rental yields – cash flow positive – rural investment that financially it pays for itself or makes a profit.
Or the good capital growth but low rental yields of a city investment – meaning you are constantly having to financially top up your investment.
Obviously, some country towns are better investments than others so what should you look for?
A country town will be a good investment for investors if they have a diversified economy:- country towns that are likely to exhibit such features will be reasonably close to a prominent regional centre, with a large, established population base.
Signs of area growth or diversity are plans by a local town council to upgrade existing infrastructure.
A burgeoning local economy is also evident by a large number of new businesses going up in an area – just as the rate at which older businesses close down remains lower than average.
Look for a big kicker: something big that’s going to occur in the area, which will guarantee growth. If there’s a project that may attract people for employment over an extended period, you can be pretty sure that the property market will be good – regardless of it’s in a country town.
High rental yields and low vacancy rates mean that the area is popular with renters, and has a good mix of employers.
So come let us show you what great investment properties are available in rural NSW.