The Hidden Gems of Regional Real Estate Investment

All-time low interest rates

and increased demand in big city markets are making certain regional towns very attractive for the investor market. Towns like Tweed Heads and Lismore have units 2 or 3 bedroom units under $250,000 with rental yields of 7% gross. Factoring in council rates and body corporate fees provides a return better than 5.5%, which beats current bank interest.

Generally inner city prices have been growing at 2.4 times that of regional areas. However not all regional areas are the same, and if you know where to look, there are gems to be found.

Southern Cross University

has increased demand for student accommodation, which is driving investment in Lismore. Retirees and young families are flocking to Tweed Heads. Ballina also has strong investment potential as a favourite among the retiring Baby Boomers and Murwillumbah provides a unique rural lifestyle and hub for towns like Uki, Kyogle and Nimbin that are centres for alternative culture.

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