podcast

The biggest risk of purchasing regional investments

Rich Harvey, Managing Director, propertybuyer

Download Video: MP4,

The question as to whether to invest in a city area, a metropolitan area or a regional area is an interesting one. Our investors have shown that you can do just as well in a regional area as in the CBD. The thing for metropolitan investors is there's a very wide pool of tenants and you also have a diversity of employment opportunities. The risk of investing in a regional area is that the main employment drivers could dry up at some stage.  So regional investors need to do an extra layer of homework to make sure that the key drivers for employment are going to stay in place. I wouldn't advise to buy in a one industry town.  Places like Mount Isa or another area where there's only one major employer in the town can be quite risky. So if you're buying in a regional area look at what are the drivers. Who are the employers? What's the rental demand like? And what's the history of that rental demand been like over a period of time? But just buying in a capital city is not a fool proof investment strategy. When you're buying in a capital city, you've got to do just as much research to find the areas and the pockets of value and find areas where there's high tenant demand for the future.

Listen to other instalments of The Smart Property Investment Show:
Episode 89: Renovating as a couple: two young investors share their story
Episode 88: Everything you want to know about the short-term rental market revealed
Episode 87: BONUS EPISODE: Former Olympian shares his property development know-how
Episode 86: How a former Olympian found new sport in property development: Ed Fernon's success story
Episode 85: Q&A session with Paul Glossop – more questions answered!
Episode 84: 'How I overcame dodgy builders to manufacture $100k in equity in less than a month'
Episode 83: BONUS EPISODE: Top Aussie broker’s tips for surviving changes to mortgage lending
Episode 82: The investment strategy that could allow this 32-year-old to retire TODAY
Episode 81: BONUS EPISODE: Secrets of the Perth market uncovered: invest now or wait?
Episode 80: Q&A session: SPI answers all your burning questions
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