Australia’s leading tax depreciation specialist, BMT, has released data which suggests rural and regional locations across Australia have experienced bumper property investment activity during the recent financial year.
Point Pirie in South Australia lead the nation with a 169 per cent increase in the number of tax depreciation schedules requested during the period, while New England in New South Wales rose 89 per cent and Victoria’s Oven region grew 58 per cent.
“Though such a result may appear counterintuitive, these increases may be owing to the cheaper house prices and higher rental yields found in such locations,” said BMT Managing Director, Brad Beer.
“With many capital cities experiencing considerable capital gains over the past few years, some investors appear to be seeking out alternate market segments in order to enter the market faster and at a lower price while still realising a solid return.”
The increases in individual rural and regional locations significantly outpaced the state-wide average activity growth found in South Australia (20 per cent), New South Wales (23 per cent) and Victoria (19 per cent).
The South Australian wine region of Riverland came in second nation-wide by increasing 141 per cent.
The New South Wales south-coast city of Nowra achieved a 64 per cent increase.
Tasmania’s North-East region rose 46 per cent despite greater Tasmania not actually experiencing an increase at all.
Queensland’s Logan City between Brisbane and the Gold Coast, three quarters of which is covered by wooded vegetation, moved up 66 per cent while greater Queensland achieved just 19 per cent.
According to BMT these types of towns and regions have been generating investor interest for more than just the past financial year, with Logan City in particular steadily transforming into a vibrant hub of investment activity.
“These locations present a unique opportunity for investors willing to think outside the box and take advantage of regions able to still provide returns but at a much lower cost of entry,” concluded Brad Beer.
Bradley Beer | Chief Executive Officer
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BMT Tax Depreciation