Most property investors stick to areas they're familiar with – the cities in which they live and understand. But for those who live outside Australia's main city centres and understand country markets or those city dwellers prepared to do their homework and take on some added risk, Australia's regional areas provide some very attractive opportunities.
Pockets of growth
Take New Auckland, for example. Residex figures for October show that this Queensland suburb on the fringe of the mining port town of Galdstone has experienced an 11.4% jump in house prices in the past year. The average house price is $320,500, enough to get you a two bedroom house on a decent block of land and pull in a rent of $435 a week, with a 7.1% rental yield.
Then there's South Hedland on the other side of the country in Western Australia. House prices in that suburb have soared by 21% in the past year. The average house price is $642,500, with an average rent of $1,545 a week and a rental yield of 12.5%.