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.
Why?
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).
More Outs
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?
Yes…
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.
No…
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.
Or lackthereof.
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.
So…
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.
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22 Comments
Terence A.
A good read
The Frugal Samurai
Thanks!
Craig Hilton
Hi Viktor
Given your little bundle of joy, I was wondering if you’d talk about how impending fatherhood has affected your investment journey?
The Frugal Samurai
Hey Craig! Sure I intend to write it along as we go, stay tuned!
Micah Pauline A. PIelago
Good read. You must do more like this!
The Frugal Samurai
Thanks Micah… and I already do!
Krysten Quiles
Very interesting, thanks for all the great info!
The Frugal Samurai
Thank you for reading!
Mae
Very interesting read and you made that point clear. Although work from home is very feasible, cost effective for both parties, they still want to inject more money back to the local economy. So true!
The Frugal Samurai
Glad you think so 🙂
Denise
I like the idea of splitting up working from home and commuting to the office. And the good thing is employers are finding production has increased from those who work from home – welcome to the future
The Frugal Samurai
I know right? I remember reading the 4 hour work week, and thinking it was a pipe-dream. Well not anymore!
Emily Fata
This is really useful information! Thanks so much for sharing this will all of us — I really appreciate it!
The Frugal Samurai
Happy wandering Emily!
Sonia Seivwright
This really got me thinking. Thank you for sharing.
The Frugal Samurai
No problem.
Tweenselmom
It’s time that regional markets get the attention they deserve and considering the boom of remote jobs, hopefully, more and more regional locations will be developed soon.
The Frugal Samurai
I think so, but I don’t know when? That’s the key. The govt ain’t really caring too much about regional areas traditionally speaking.
Marjie Mare
This post was very informative for me and I would definitely want to learn more from you on the subject. Although, I must say that Covid has changed and will change the way everything used to be.
The Frugal Samurai
Yeah, sometimes wish we could go back to the way things were!
Yanitza
Very interesting read! COVID has caused many changes for sure and being able to work from home has been a success for many. Regardless, I think there’s more to come. We’ll see many more changes along the way, one of those being that people will soon be back in their offices.
The Frugal Samurai
You think so? I think the “new normal” means that the WFH is going to be a more permanent dynamic, which suits me well 🙂