The seven rural and regional areas on investors’ radars: BMT
A surge in tax depreciation schedules requested in a number of regional areas has been noted by tax depreciation company BMT’s managing director Brad Beer.
Beer said that rural and regional locations appear to have attracted strong investment activity over the past financial year.
But where have they been targeting?
Topping the list is Port Pirie, where a 169% increase in the number of tax depreciation scheduled was recorded.
- Riverland, South Australia
The wine region recorded a 141% surge in requests for depreciation schedules.
- New England, New South Wales
This area recorded an 89% uptick in schedules requested.
- Logan City, Queensland
This city, a strong investor favourite, recorded a 66% increase, compared to greater Queensland’s 19% uptick.
- Nowra, New South Wales
A 64% increases was achieved by this south coast area.
- Oven region, Victoria
A 58% surge was noted for the Oven region.
- North-east Tasmania
A 46% surge was seen in the north-east of Tasmania, despite greater Tasmania recording no increase.
Interestingly, these increases in individual regional ad rural areas strongly outpaced their respective state-wide averages. The activity growth in South Australia was at 20%, New South Wales saw a 23% surge and Victoria was up 19%.
Beer said that this may be due to the cheaper house prices and higher rental yields available in the rural and regional areas.
“With many capital cities experiencing considerable capital gains over the past few years, some investors appear to be seeking out alternate market segments in order to enter the market faster and at a lower price while still realising a solid return,” he said.
“These locations present a unique opportunity for investors willing to think outside the box and take advantage of regions able to still provide returns but at a much lower cost of entry.”