Reading Time: 2 Minutes
Hm, recently I’ve been reading more and more about how the regional markets are going to outpace metro locations in terms of capital growth.
Stories such as these:
“House prices in regional Australia have risen at a higher annual rate than in capital cities for the first time in more than 15 years, as COVID-19 increases people’s desire to live outside the big smoke.
That compares to an almost 7 per cent increase for regional markets.
“Regional markets haven’t outperformed the capital city markets since 2004,” CoreLogic research director Tim Lawless said.”
Are increasingly making people step up and take notice.
Yeah fair enough.
I can understand that.
And it’s also fair to say that some areas are absolutely BOOMING right now.
I’m talking about the satellite regions surrounding our capital cities.
Areas like Wollongong and Newcastle, Geelong and the Mornington Peninsula. Oh and don’t forget the Gold and Sunshine Coasts of QLD.
Naturally I think it’s because COVID has sped up the retirement/FIRE plans for many.
Those with the means and the job security, increasingly have the option to work from home.
So why not accelerate your tree-change or sea-change that was 10 years away to the here and now?
The dream for many is to work at home for say 2/3 days a week, and then commute into the city for the other 2/3 days.
COVID has shown employers that yes, people can work from home, and that yes – work CAN be done whilst they are.
My boss (at work I mean, not MrsFrugalSamurai) lives up the Central Coast of NSW, and has done for a number of years now.
It takes him roughly 1hr 40 minutes to get in one-way, which he actually prefers as he can get more work done during this time (either calls or emails).
And he’s not the only one it seems…
People are leaving our capital cities in DROVES.
So… should we be considering investing in regional locations?
You would expect that in the short-term, the trend to continue.
Certainly as our cities expand, and a more permanent shift towards remote working, then for sure – replying to emails whilst having an affordable beach view is definitely in.
Oh yeah, and on that note – affordability is the buzz word.
Regional areas tend to be much cheaper than their nearest capital city.
However, not all regional locations would do well methinks.
You see, pre-COVID – there was a great debate regarding investing in regional locations.
At the end of the day, it came down to jobs, jobs, jobs.
Which is why COVID is such an interesting dynamic, chiefly because of the WFH phenomenon.
As long as employers allow their employees to continue to WFH, then sure – regional locations will be well sought after.
However, there are already signs that local and state governments want employees back in the offices.
Personally, I am not convinced the regional revolution is here to stay.
Mainly because I think, actually I’m fairly sure – that COVID will be mitigated in the form of vaccinations relatively soon.
Which means we’ll all be heading back into the office straight after.
Also, the cynical side of me thinks that politically, the government would want more people back in the business centres than stuck at home.
Think about it, the average worker spends money getting on public transport, or paying for tolls on our busy roads, just to get into the office.
Then they take a break during their lunch hour, to spend their hard-earned at the local sandwich shop.
Not to mention a bit of late-night shopping after work, or a trip to the pub with work-mates.
Look at all those dollars injecting back into the local economy!
What do you get when you work from home?
Savings go up.
Sure you might look to spend online… on overseas websites for overseas products.
How would that help the local economy?
You gotta follow the money you see.
Did you enjoy this post? If yes, put your email in and click on the little “subscribe” button at the top right. You’ll also receive a free copy of the Complete Aussie FIRE e-book – The Ultimate Guide to Financial Independence for Australians.
Or you can follow me here: