Affordability, excellent rental yields, and outstanding capital growth; Sounds too good to be true, doesn't it? The good news is, it's not!Property investors are setting their sights on Regional Victoria as experts predict the area will boom over the next few years. People are escaping city life for multiple reasons. First, to enjoy a more relaxed lifestyle and escape the hustle and bustle of city life. Second, they're trading in a tiny city apartment to raise a family in a house with a backyard. Or, thanks to the global pandemic, more employees can enjoy the benefits of working remotely, meaning living in the city is an option, not a requirement. Due to this, regional Victoria is enjoying a huge resurgence, and intelligent investors are following closely behind. Over the past 12 months, the Victorian market has been on the up and up despite the global pandemic. According to CoreLogic's latest home value index, regional Victorian properties are sitting at an annual growth rate of a whopping 18.1 percent. As a result, property investors are setting their sights on regional Victoria, and there is more than one reason why.
One of the most appealing incentives to invest in property in regional Victoria is what you get for your money. Typically housing values in regional areas are more affordable than those in metropolitan areas. Regional Victoria is no exception. Victorians can purchase a larger block of land to build on for less money. As a result, investors can acquire a more impressive property and, therefore, more equity for their portfolio. This unheard-of level of affordability could be the foundation to kick off investor goals and a gateway into a profitable property portfolio. Build affordability in regional Victoria will also result in investors seeing a dramatic increase in their annual rental yields.
Essentially, a rental yield is the amount of money an investment property makes you. To calculate this, you deduct the income you receive from renting out the property away from the overall costs. With the development growth on the incline in regional Victoria, now is the time to invest. Mortgage rates are down, the area hasn't hit its booming stage, and investors are taking full advantage. Investing in regional Victoria can see a rental yield upwards of a whopping 6%, which is an incredible result considering a 2-3% profit is regarded as a high yield.
The regional Victorian corridor will see a lot of growth over the next few years. With supermarkets, new schools, and art centres in the pipeline, this area will be on the up and up for the foreseeable future. At this time, it is reasonable to purchase a land and house package for $550,00 in regional Victoria. As an investor, this will reap you a solid rent return to add to your annual income and will only increase as the area continues to grow.
Property investors from all over Australia are setting their sights on regional Victoria simply for the return on investment forecasts. Investors are always on the lookout for opportunities that will deliver excellent capital growth and extraordinary returns. With Regional Victoria set to boom, investors are getting in before the market follows suit. Now is the time to invest in regional Victoria. To find out how you can capitalise on investment opportunities in regional Victoria, have a chat with a member of our friendly team. Gallery Groups' Aspire Range offers a streamlined alternative to custom building that's faster, easier, and more affordable. It's the perfect choice for property investors looking to start or add to their portfolio. Read more about The Aspire Range here.
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