Fresh air, no bumper-to-bumper traffic, and more affordable home prices. Regional living holds considerable appeal, including a chance to potentially reduce your home loan.
The classic tune ‘Home among the gum trees’ is fast becoming a lifestyle anthem for a growing number of Aussies. New Commonwealth Bank research shows a surging number of city-slickers are heading to the bush or bay. In fact, metro to regional relocations are now 20% higher than pre-Covid, highlighting the numerous benefits of regional towns and cities.
A laidback lifestyle, more affordable housing, and the chance to see Skippy on your way to work instead of countless traffic lights. Regional living offers these and more.
The Sunshine Coast in South East Queensland is currently the nation’s most popular destination for Australian movers, securing a 16% share of net internal migration over the past 12 months. Other popular areas outside our nation’s capital cities include the Gold Coast, Wollongong, Newcastle, Lake Macquarie, Moorabool, Geelong, the Alexandrina region, the Fraser Coast, and Launceston. Western Australia is also becoming increasingly attractive, with Busselton, Capel, Greater Geraldton, Northam, and Albany making their way onto various hotspot lists this quarter.
Across Australia’s capital cities, the median home value is about $864,780, according to CoreLogic. By comparison, the median value across regional markets is $626,888, a whopping $237,892 difference. The price gap can be far bigger depending on where you’re moving from and to. In Sydney, for instance, the median house value is $1,441,957. Head to regional NSW, and you could pay closer to $760,000 for a house – a saving of around $680,000!
Buying a more affordable home can have other benefits, such as a lower stamp duty bill and a huge impact on home loan repayments. For example, using the above figures and assuming a home loan rate of 6.4% and a 30-year loan term, the initial mortgage for the city home would be about $692,000 with monthly mortgage repayments around $4,329. For the regional property, your initial mortgage would be about $454,000 with monthly repayments around $2,840. That’s a monthly saving of $1,489 by moving to a regional area – extra money to spend on your home, yourself, or your lifestyle.
No one can predict with certainty how property values will perform in the future. However, CoreLogic reports that values in regional areas have jumped 51.1% ($212,000) nationally since March 2020, compared to an average of 31.5% ($207,000) across our state capitals. In terms of dollar values, the capital gains across both markets have been fairly similar in recent years.
Regional living isn’t for everyone. Even for committed fans, moving from a capital city to a regional area calls for careful planning and research. But if you’re keen on a home with a more manageable mortgage, give us a call today to discuss loan options that could help you get that tree or sea change happening sooner.
To learn more, contact Premium Finance Group Australia at (07) 4720 8888 or email us at finance@pfga.com.au.
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