Angus Raine’s three factors to ensure success investing in regional areas

Jennifer DukeDecember 7, 2020

Buying into Australia’s regional areas can cause some to come unstuck, particularly when they haven’t done their research. However, Raine & Horne’s CEO, Angus Raine, said that there are three things you can look for to ensure a bit of extra success.

Discussing the exacerbated drought conditions across regional New South Wales and Queensland, Raine said that seasonal challenges are all part and parcel of living in country areas.

For these reasons, investors and property buyers would do well to focus on these three areas:

  1. Robust economies
  2. Strong employment prospects
  3. Population growth

“These factors can help underpin decent long-term growth and rental yields and provide some cover against the effects of environmental influences that are often out of our hands such as flood and drought,” said Raine.

In particular, the Queensland town of Charters Towers and north west New South Wales’ Moree have these three pillars.

For instance, Charters Towers doesn’t rely solely on agriculture, with a strong education sector and a mining base for gold and coal.

Kelly Atkins, principal of Raine & Horn Moree, said that while the drought is affecting the market, real estate remains resilient.

“Around 30%of buyers are investors, and many of these individuals don’t live in Moree,” said Atkins.

Yields of up to 8% are seen within the area, such as a $164,500 three-bedroom house on Boland drive that rents for $255 per week.

What factors do you look for in a regional town?

jduke@propertyobserver.com.au

Jennifer Duke

Jennifer Duke was a property writer at Property Observer

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