Growing numbers of younger Australians are opting for regional living, and part of the lure of a ‘seachange’ or ‘treechange’ can be the chance to get more bang for your buck.
As property values climb higher, the median home price across our combined capitals has just pushed past the $1 million mark.
That’s seeing a rethink among plenty of Aussies, who are swapping city skylines for regional horizons.
Relocations from capitals to regions are outpacing moves in the opposite direction, according to the latest Regional Movers Index.
And recent CommBank research shows more than 5.3 million Australians – about 37% of city dwellers – would consider a tree change.
Gen Z (aged 18-29) is leading the trend, with almost half considering a regional move.
The Regional Australia Institute (RAI) found more affordable housing is a key appeal for more than two-in-five would-be tree changers, rising to one-in-two Gen Xers (1965-1980).
But are property prices really more affordable outside the big cities? And what should buyers be aware of when it comes to buying a home among the gum trees?
There’s no doubt regional Australia can give home buyers a generous serve of affordability.
As a guide, the median home price across our combined capitals is currently $1,002,520.
That’s a whopping $258,848 higher than the $743,672 median value across regional markets.
This price gap doesn’t just mean saving on the cost of a regional home, and property-related expenses like stamp duty.
It can also allow first home buyers with a smaller deposit to bring forward their buying plans, or buy a house rather than an apartment.
In addition, a lower purchase price may mean you need to borrow less, which brings the added plus of lower home loan repayments.
Let’s bust a few myths.
Yes, you can get great coffee outside of the cities, and no, regional areas don’t always lag behind state capitals when it comes to property price growth.
The latest house price data from Cotality shows regional home values rose 10.3% over the last year, outpacing the 9.2% gains across state capitals.
This isn’t a one-off.
Regional home values climbed 57.4% over the past five years, compared to 42.8% across the combined capitals.
This reflects what the Australian Housing and Urban Research Institute says is a knock-on effect of the long-term trend of people migrating out of our cities and into regional areas.
If you’re considering pulling stumps from the city, and moving to the regions, it is important to be confident about your job prospects.
The good news is that many regional locations have healthy job markets, though this is always worth checking (not to mention taking into consideration your occupation or qualifications).
However, you may not need to change jobs at all.
An RAI study shows close to half (47%) of city dwellers planning a regional move would stay in their current job on a remote or hybrid basis.
Either way, it’s a good idea to talk to us about your work arrangements. That’s because home loan lenders like to see that you have stable employment when you apply for a home loan.
Other than that, the process of applying for a home loan is much the same regardless of where you plan to buy.
If you’re thinking of farewelling the big smoke in favour of country living, get in touch with us today. We can run through your situation and explain the home loan options that are a good fit for your needs.
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Paul da Silva
Director & Senior Mortgage Advisor
