While the east coast property markets have remained in the doldrums over the past 12 months, prospects may be improving. 

According to a media release from the Real Estate Institute of Australia in February 2006 on figures released for the December quarter, “median house prices in Darwin recorded very strong growth of 9.3% over the quarter to reach a median price of $328,000. Strong quarterly growth was also recorded in Melbourne (up 5.6% to $375,000), Perth (up 5.5% to $325,000) and in Canberra (up 5.1% to $368,000). 

“More moderate quarterly growth of 3.8% to $276,500 was recorded in Hobart. ?amp;nbsp;

First home buyers and property investors
It appears that first home buyers have still been searching for houses over the past 12 to 18 months, but it’s the investors who have disappeared. With the strength in the sharemarket continuing unabated and mixed rental markets, the absence of many investors shouldn’t be surprising. However, there are opportunities for mortgage brokers in the property investment market. 

Opportunities for mortgage brokers
While many property investors have been steadily switching their investments towards the sharemarket over recent years, there are still opportunities for mortgage brokers within the investment market. Many aspiring ‘mum and dad investors?are suspicious of the sharemarket and don’t really understand it, so they are reluctant to invest in it. Many still aspire to purchasing an investment property. And perhaps at the moment, the best place to be looking may be in the regional market. 

The benefits of investing in the bush
While properties in the regional areas may not always provide the capital gains over the longer term compared with their city cousins, the regional property market provides some great opportunities for first time investors. This is because it’s a lot cheaper to get into the regional market and therefore is well within reach. For example, in Orange in the central west of NSW, two and three bedroom houses start from around $125,000. 

And many regional areas, including Orange, have a strong rental market. A recently advertised three bedroom house selling for $129,000 in Orange had been rented for $145 per week. In fact, many regional cities and towns have an undersupply of rental properties available. This is partly due to the seasonal work available in many places and a large itinerant population. This naturally keeps rents up and vacancy rates low. 

How to take advantage of the regional property market

Regardless of where your broking business is based, you may be able to leverage off the opportunities available in regional areas. Perhaps you could include it in your advertising. An example might be “If you’re looking to take advantage of the great opportunities available for regional property investors…”

 

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