Think there’s not much investment activity going on in regional markets in these times of hot city prices? Think again.
Exponential growth in the number of tax depreciation schedules in certain regions around Australia suggests quite the contrary, according to tax depreciation specialist BMT.
Rather, the data for the recent financial year indicates bumper property investment activity in regions like Point Pirie (South Australia) - which recorded a 169% increase in the number of tax depreciation schedules requested.
Some other regions to record spectacular increases were:
- Riverland (South Australia) with a 141% increase
- New England (New South Wales) with an 89% increase
- Fremantle (Western Australia) with a 76% increase
- Logan City (Queensland) with an increase of 66%
BMT managing director Brad Beer said these increases significantly outpaced the state-wide average activity growth found in these regions’ respective states.
In particular, the cheaper median house prices and higher rental yields on offer in such regions are attractive to investors when compared to the higher prices and lower yields of many capital cities.
“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.
Further, Beer said today’s technology means that it has never been easier to work remotely and, therefore, there is less need for people to commute to work in the city as often.
This, in turn, enables people – be they renters or investors - to live somewhere other than a big city for affordability and/or lifestyle reasons.
“So these locations present a unique opportunity for investors willing to think outside the box and take advantage of regions which still provide returns but at a much lower cost of entry.”
Top 15 regions for growth in tax depreciation schedules
||Corresponding state growth
||New England, NSW
||Logan City, QLD
||Cowes/Phillip Island, VIC
||North East, TAS
||Central Highlands/Ballarat, VIC
||Central & Southern, TAS
||Redland Shire, QLD
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