The next big thing?

The baby boomers, those born between 1940 and 1964, are retiring. Many of these hard working Australians have only been contributing to their superannuation since it was made compulsory in 1997. The generation of Australians that have been described as a basketball moving through a garden hose will require funds to retire, and for many, their high priced home in Australia’s high priced capitals will be swapped for an equally nice house in lower priced regional NSW. This new life also comes with lower living expenses and a large quantity of funds left over from their relocation.  

The Millennials and Gen Xers, those born between 1965 and 2000, are seeking the great Australian Dream. Many of these young Australians are identifying that buying their quarter acre block with a white picket fence in a capital city is unrealistic. People are seeking a life where they can still further their career, still enjoy an active lifestyle, but have a five minute commute and lower living expenses.

Regional NSW is, according to many, on the brink of a boom like which it has never seen before. According to some property commentators and media outlets, the Sydney property boom has finished its run and is heading for a correction. Many people now believing that 'the Australian property market’ bubble will pop, however, throughout Australia there is not one overall property market, nor have all the individual markets ever moved consistently together. While Sydney has seen much growth over the past five years, many regional markets have been identified by market researchers as starting to move now.

In an interview with regionalpropertynsw.com, Dr Andrew Wilson (economist and property commentator) suggested that regional NSW markets are showing many signs of being at the start of their growth cycle. Dr Wilson cites the 'ripple effect' as being a prominent factor in regional property market growth, as many people are now priced out of Sydney. Dr Wilson also expressed people's desire to live in places with space, wanting the 'Australian dream' of a house on a quarter acre block. While this is becoming harder in capital cities and will often involve a considerable commute, in regional areas people can have the 'great Australian dream', within several kilometres of the CBD, with a considerably smaller mortgage. 

People have for decades given many reasons for not investing in regional cities. No jobs, no capital growth, no tenants, one industry towns... I think these people are imagining small, one pub, one shop towns with tumble weeds blowing down the main street. Do some research and you'll find many jobs available, many diverse industries and a high demand for rental properties in large regional cities. Cities such as Orange and Bathurst are large regional centres that emulate capital cities. They have all the businesses and services of a capital city, on a smaller scale. Some parts of regional NSW have the potential for investors to find positive cash flow, affordability and capital growth with a diverse economy that has seen consistent growth over more than 100 years. 
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With population, comes a need for shelter. With the need for shelter, comes higher purchase prices and rental yeilds. Perhaps the factors for a wave of growth in regional NSW is beginning? Will you be ready to catch it? Find out more at regionalpropertynsw.com or like our page on facebook. 

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