What to consider before buying property in a regional area

What to consider before buying property in a regional area?

Relocating to regional areas has become increasingly popular within Australia as more and more companies introduce hybrid or complete remote working structures, encouraging many of the population to opt for a tree change. 

 Whilst there are many benefits that come with purchasing properties in regional areas including a quieter, slower pace of life, larger houses and land - all with housing values that don’t make your eyes water, there are important considerations you should take into account.

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Things to consider before buying a property in regional areas of Australia

When you’re in a position to look for the right home loan, consider reverse home loan auctions, as they can provide several benefits for borrowers by providing access to a wide range of loan products and lenders. With the ability to compare the full terms & conditions, lending fees, and interest rates offered by different lenders. This can help borrowers to find the most suitable home loan for their needs and will save borrowers time comparing and money on their home loan.

In addition, reverse home loan auctions can provide an efficient and convenient way for borrowers to apply for a home loan. By participating in an auction, borrowers can submit their home loan requirements l and information to multiple lenders at once, and lenders will then submit their offers s within a short period of time. This can save borrowers time and effort when applying for a home loan.

Other things to consider when looking at regional areas to purchase a property in include: 

• Location: “Location, location, location”. Whilst buying outside of metro areas may be seen as a cheaper option, it does not mean all regional areas are the perfect location for you to buy . Make sure you consider the location to see if the area would be a good fit for you and your family. This includes checking to see the proximity to schools, hospitals, public transport, shops and other important amenities. .You should also consider how far you are willing to move from your nearest capital city. It’s a good idea to speak to some locals about the areas as well to get further insights to help make your decision.
  

• Property type: It’s important to consider the property type and ensure you know as much as possible about the property that you are looking to purchase. Including conducting relevant inspections, visiting the property in person and taking into consideration the surrounding neighborhood and nearby facilities.

• The costs involved: It’s important to budget for not only removalists and relocation costs involved when moving to a regional area, but costs involved when attending open homes during the house hunting process, including travel costs whether that be via car or flight, accommodation costs and other basic necessities when travelling. 

• Economic factors: The economy of the region can have a big impact on property prices. Research the local job market, as well as any major industries or employers in the area. This will give you a sense of the overall economic stability of the region and can help you determine whether the area is likely to see growth or decline in the future. In some regional areas, the economy may be heavily dependent on one or two major industries, such as mining or agriculture. This can be a risk to consider as fluctuations in these industries can have a big impact on the local economy and property values.

• Demographics: Consider the demographics of the area, including the age, income, and education level of residents. This can give you an idea of the overall lifestyle and culture of the region, which can impact your decision to buy in the area. For example, an area with a high proportion of retirees may have a different pace of life compared to an area with a younger population.

• Environmental factors: Regional areas often come with unique environmental considerations, such as bushfire or flood risk. Research the area's history with these types of natural disasters, and consider any additional insurance or mitigation measures that may be necessary. Additionally, consider the area's climate, as certain regions may be more prone to extreme weather conditions, such as high heat or heavy rainfall.
  

• Property values: Regional properties may seem like a more affordable option, but it’s important to consider and research why they are affordable. Consider if the area is in low demand, as this may mean it will be harder to sell the property should you need to relocate again in the future. Be wary of ‘’Cheap’’ suburbs, this may mean there is a lack of general amenities in the area which may not be the ideal option, especially if you are looking to rent out your property. 

• Research property history: Research the property history and ask for the proper certifications from the seller such as pest and building inspection report, zoning information and the local council regulations. It will be important to know if there are any potential legal issues or hidden repairs that will be required.

• Transportation access: Think about how easily you'll be able to travel to and from the property. Look into the availability of public transportation, as well as the distance to major highways and airports. This can impact things like your ability to commute or the feasibility of renting out the property to tenants.

• Lifestyle opportunities: One of the main draws of regional areas is the lifestyle opportunities they offer. Consider the recreational and leisure activities available in the area, such as hiking, fishing, and camping. Look into the cultural scene of the area, such as local festivals, events, and the availability of theatres, galleries, and museums. If you're planning to move to a regional area permanently, it is important to find the area that offers what you need to live a comfortable and happy life.

• Government services and facilities: Research on the availability of government services and facilities in the area, such as hospitals, schools and community services. This could also be a determinant factor especially when planning to settle with family and children.

It's always a good idea to consult with a real estate agent or property lawyer to help you navigate the purchasing process and advise you on any potential legal or financial considerations. They can also provide valuable insight into the local market and may be able to provide additional resources and information to help you make an informed decision.

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Risks of buying regional property:

There are several risks involved in buying a regional property, including:

• Economic risks: Regional areas may be more vulnerable to economic downturns, which can affect property values and rental income.

• Natural disasters: As we have recently seen with bushfire and flooding in QLD and NSW, regional areas may be more susceptible to natural disasters which can cause damage to the property and make it uninsurable.

• Limited demand: If you are looking to buy an investment property, regional areas may have limited demand for rental properties, which can make it more difficult to find tenants and achieve a good rental return.

• Limited services and amenities: There are usually limited services and amenities in regional areas when compared to urban areas, which can make it less desirable for some buyers and renters.

• Limited access to financing: Some lenders may be more cautious regional properties, which may make it more difficult to obtain finance. Consider using Joust to easily find which lenders would be willing to finance regional properties. 

• Limited appreciation: Regional properties may not appreciate as much as properties in urban areas, meaning if you are looking at an investment property, you may not see the same level of growth.

• Difficult sale process: Regional properties may be harder to sell quickly if you need to relocate again or if you are an investor and need to liquidate the property.

It's important to do your research and carefully consider these risks before purchasing a regional property. It is also a good idea to consult with a professional or expert in the field before making any decision.

Is regional property a good investment?

As with any investment property, you should do your research and due dilligence, especially when it comes to regional properties as they are very different from properties in the major cities. 

With an increase in Australians looking to make the tree change, it may seem like the perfect opportuntiy to invest in regional areas, and whilst there are many benefits to investing in regional properties such as potential higher rental yields and the opportunity to retire in the location, there are also some risks that need to be considered. We reccommend seeking professional advice from someone who has experience in the regional property market. 

‍Regional areas in New South Wales

New South Wales is known for its diverse landscapes and wide range of property options, from bustling city centers to peaceful countryside retreats. NSW consists of 10 regions. Here is a short list of some of the regional areas in New South Wales to consider:

• The Hunter Region: Located just two hours north of Sydney, the Hunter Region is a popular choice for property buyers looking for a relaxed, semi-rural lifestyle. With a diverse range of properties, from coastal towns to vineyards, the Hunter Region offers something for everyone. Popular towns in the Hunter Region include Cessnock, Maitland, and Newcastle.
  
  
• The Illawarra: With its picturesque beaches, lush rainforests, and thriving cultural scene, the Illawarra region is a popular choice for both buyers and renters. The region offers a mix of different property types, from apartments and townhouses in Wollongong Centre to waterfront properties in surrounding suburbs.
  
  
• The Central Coast: The Central Coast is another popular choice for buyers looking for a seaside lifestyle. With its long stretches of sandy beaches, tranquil lakes, and scenic bushland, the Central Coast offers a laid-back lifestyle that's hard to match. Popular towns in the Central Coast include Gosford and Terrigal.
  
  
• The Southern Highlands: For those looking for a change of pace, the Southern Highlands offers a charming, rural lifestyle with a touch of elegance. With its rolling hills, charming villages, and historic properties, the Southern Highlands is a great option for those looking to escape the hustle and bustle of city life.
  
  
• The Snowy Mountains: The Snowy Mountains region offers an ideal option for those looking for a holiday home or an investment property in a popular tourist destination. With its alpine landscapes, winter sports, and year-round activities, the Snowy Mountains offers a unique opportunity for property buyers.

You can find out more about these regions on the NSW state government website

Regional areas in Victoria

‍Although Victoria is the second-smallest state in Australia, it’s well-known for it’s bustling capital city, Melbourne. But there are many other breathtaking locations to consider in Victoria’s 5 regional areas including: 

• The Barwon South West Region: This region stretches from the border with South Australia to the tip of Queenscliff at Port Phillip Bay. This region includes Victoria’s largest regional city Geelong, the picturesque Great Ocean Road and welcoming coastal towns. The region’s rich soil provides the basis for thriving horticulture, viticulture, dairy production, timber plantation/harvesting, cattle grazing and wool production. 
• Grampians Region: From the border with South Australia at Victoria’s west to the edge of metropolitan Melbourne at Melbourne’s east, the Grampians Region includes many townships, attractions and activities. There is plenty to see and do in the Grampians Region, as well as many investment opportunities in areas such as renewable energy, food product manufacturing, agriculture and tourism.
• The Loddon Mallee Region: This region occupies more than a quarter of Victoria. With one of the most consistently warm climates in the State, people enjoy the region’s waterways, acclaimed restaurants and wineries, heritage towns and grand forests. The Loddon Mallee Region has a growing economy in tourism, horticulture and manufacturing. 
• The Hume Region: Renowned for its world-class wines and gourmet food – it’s also part of the ‘food bowl of Australia’. The region’s diversity – and new opportunities in key industries – will ensure steady economic development and jobs growth. This is reflected in Hume's population growth, which is projected to grow by over 38% before 2031.
• Gippsland Region: Gippsland offers a variety of natural attractions for residents and visitors to enjoy: clean beaches, pristine rainforests, snowfields, hiking and riding trails, wineries and more. Some of Gippsland’s key industries include dairy, fishing and energy. Gippsland is popular for its sports activities like water skiing, surfing and snow skiing.

You can find out more about these regions on the VIC state government website 

Regional areas in Queensland

Queensland is well-known for it’s stunning coastline beaches, islands and world-heritage listed Great Barrier Reef and covers the north east of Australia, consisting of 10 regions. A few of the regional areas in Queensland to consider include: 

• Central Queensland: Major center's of Gladstone, Rockhampton, Emerald, Yeppoon and Longreach along with the smaller communities of Barcaldine, Winton, Biloela, Blackall and Tambo service strong resources, agriculture, education, health and tourism industries. 
• Darling Downs South West: This vast and economically diverse region is centered on the regional capital of Toowoomba and is supported by significant regional towns such as Dalby, Warwick, Roma, Goondiwindi and Charleville. Also location of Australia’s newest regional airport with access to international markets, and main industries including argiculture, aviation, construction, education, manufacturing, renewables and tourism. 
• Greater Whitsunday Region: The region is one of the most naturally beautiful and resource-rich locations in Australia contributing more than $46 billion in economic output to the Australian economy. The iconic Great Barrier Reef and Whitsunday Islands and boasting a diverse agricultural industry which provides over $1.46 billion to the Queensland economy, the region is an economic powerhouse that is key to Queensland’s economy
• Far North Queensland: This vast and economically diverse region is Queensland’s gateway to the Asia-Pacific. Far North Queensland covers from Cassowary Coast in the south to the Torres Strait Islands in the north. It includes the Great Barrier Reef and the Wet Tropics of Queensland World Heritage listed areas. Home of the naval base HMAS Cairns, it also includes three major slipways and the Pacific’s largest mobile boat hoist. Far north Queensland is a popular tourist and superyacht destination and a popular location for international students for both short and long-term stays. 

You can find out more about these regions and more on the QLD state government website 

Regional areas in South Australia

South Australia is the southern central state in Australia and consists of 12 regions. A few of the regional areas in South Australia to consider include: 

• Barossa: known for the worlds best wine region, Barossa Just a 50 minute drive north east of Adelaide, the Barossa is an internationally-acclaimed wine region encompassing the towns of Tanunda, Angaston and Nuriootpa.
• Clare Valley:  Two hours’ drive north of Adelaide is one of Australia's oldest wine regions, Clare Valley. Discover heritage towns, trails, boutique wineries, museums, galleries and beautiful scenery. Housing options are varied from large, rural properties at relatively affordable prices to smaller allotments with new homes and everything in between.
• Eyre Peninsula: The Eyre Peninsula boasts fantastic food and wine, luxury accommodation and abundant wildlife, but it's best known for its world-famous aquatic activities. The region’s economy is diverse with world-leading companies in manufacturing, mining, aquaculture, commercial wild catch fishing, agriculture, industry research, food and tourism.
• Fleurieu Peninsula: Located forty minutes South of Adelaide, the Fleurieu Peninsula offers some of South Australia's finest coastal, scenic and culinary experiences. Home to the internationally renowned wine regions that are home of sustainable wine production, world-renowned labels and unparalleled gastronomic experiences.

You can find out more about these regions and more on the SA state government website 

Regional areas in Western Australia

Western Australia is the largest state in Australia and consists of 9 regional areas. A few of the regional areas in Western Australia to consider include: 

• Gascoyne: Located in the northwest of Western Australia with more than 600 km of Indian Ocean coastline and extending inland to desert. With three major coastal towns – Carnarvon, Exmouth and Shark Bay, its clean environment and supportive local community make it a welcoming region in which to settle. Its economy is based on tourism, fishing, retail, mining, horticulture and pastoralism, and small business.
• Goldfields Esperance: Situated in the south-eastern corner of Western Australia, this is the largest region in the State. The region offers a range of employment and business opportunities, including tourism, agriculture, health and mining as well as many trades. It has a reputation for innovation, uniqueness and diversity.
• Great Southern: Most of the population in this region with its rugged coastline, tall timber forests and clean, safe environment lives in the historic port city of Albany on the southern coast of Western Australia. Its economy is driven by primary production – wool, timber, livestock and fishing with key growth areas in the transport, engineering and commercial services areas. Viticulture and tourism also play a large role, attracting a growing number of tourists every year.
• Mid West: 417kms from Perth, the mid west is widely recognised for it’s unique natural environment compromising of coastlines and mineral rich hinterlands. The Mid West has a diverse economy built around tourism, fishing, agriculture and mining. There is also a fairly significant manufacturing sector catering to the needs of the mining, fishing and agricultural industries both within and outside the region.

You can find out more about these regions and more on the WA state government website 

Keeping these factors in mind can help you make an informed decision when looking to buy a property in a regional area of Australia. Remember, it's important to research and consider all of your options, and always consult with professionals when making any major financial decisions. 

How are credit scores considered during a home loan application process?

Your credit score can affect whether you receive approval for a home loan or not. Lenders consider credit scores as part of their risk assessment when assessing your application. Your credit score will help them decide whether to approve your loan application. It can also help them determine how much they will lend you, the term of the mortgage and the interest rate offered.

The lower your score, the higher the risk you are to a lender. The higher your credit score, the more it tells a lender about how you manage your finances.

If your credit score is not as high as it should be, you should consider researching how to improve  your credit score.

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Find the home loan interest rate you deserve

Having a good credit score can have a positive impact on the outcome of your home loan application and the interest rate that lenders will be willing to offer you. Why not put your excellent credit score to work and help you pay off your home loan sooner with a better interest rate? Create your free home loan profile in just a few minutes and have lenders bid for your home loan with their best offer. In some cases, Joust Live Auction users were able to reduce their home loan rate by as much as 1% on average. 

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*The information contained in this article is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Joust recommends that you consider whether it is appropriate for your circumstances. Joust recommends that you seek independent legal, financial and taxation advice before acting on any information in this article.

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