Australia is a country with a very sizeable land mass and it’s usually only the big profile cities which get mentioned in property market commentary within the media. Even the small percentage of sophisticated property investors who take advantage of the wonderful opportunities that select regional locations have to offer tend to stick to bigger townships which act as service centres.
Truth be known, amongst the 550 individual local government jurisdictions within this large country called ‘Australia’ are a numerous lesser-known towns which, on a case-by-case basis, might be worth consideration by those investors with an adventurous spirit. But, it’s not for everyone.
The north-west Tasmanian LGA of West Coast is just one example which we’ve randomly selected in order to stimulate property investor imaginations.
With a population of only 4,500 people, West Coast includes the picturesque seaside township of Strahan. The region offers a very laid back lifestyle and an economy consisting of cottage tourism, agriculture and mining. The recent downturn in mining has resulted in some job losses. There will always be an segment of the population who prioritise this unique lifestyle ahead of employment although they, too, need shelter.
A 3-bedroom house in West Coast in 1990 would have cost around $13,000, peaked at $106,00 in 2008, and today would be worth around $70,000. Over the last 15 years, property in West Coast has increased in value by an average of 9.4% per annum; this compares to the 8.5% average annual growth rate of Australia’s combined 8 capital cities.
In the current market, a 3-bedroom house in West Coast rents for approximately $150 per week (11% yield).
The Tasmanian government has been quite active over the last couple of years to create new tourism opportunities throughout the state. This press release contains details of one such example.