Regional areas - Should they be considered?

In short, you should consider regional areas in the context of your investment strategy.

Firstly, is your property exposed to risks linked to the local economy and will this impact your property's performance?

For example, the Bali bombing dampened the enthusiasm of holiday makers in the Northern District, which gave many investors cash flow problems. However, it was a short-term impact and the market bounced back for investors who weathered the storm.

Longer-term losses are of greater concern to most investors. Especially where mining companies or large infrastructure projects supply most tenancy demand for an area and they either close or change their interest.

Tip: Some risks will be more relevant than others. An investor who plans to turn their investment around in 3-6 months shouldn't be overly worried by long-term changes in demand. An investor with a 'buy and hold' strategy may need to keep a closer eye on things.

If you would like to discuss your buying strategy, contact us on 1300 727 586.

Yours in property.