Embracing Regional Living: Is a Tree or Sea Change in Your Future?

Are you considering finding an affordable home in your suburb in the hopes of lowering your mortgage repayments? Well, here’s a new option that might be a better solution.

Picture breathing in fresh air, skipping bumper-to-bumper traffic, and enjoying more affordable home prices. Regional living offers these perks and more, including the potential to cut down on your home loan.

The classic song ‘Home among the gum trees’ is resonating with an increasing number of Aussies. According to recent research by the Commonwealth Bank, more city dwellers are relocating to the bush or the bay, with metro to regional moves now 20% higher than pre-Covid levels.

This trend highlights the numerous benefits regional towns and cities have to offer. So, what’s driving this shift?

The Appeal of Regional Living

Beyond a laid-back lifestyle and the fun of seeing wildlife like Skippy on your commute instead of endless traffic lights, a major attraction of regional living is more affordable housing.

Imagine trading your city apartment for a spacious country home, keeping more of your hard-earned money while enjoying a more relaxed way of life. Sounds amazing, doesn't it?

Popular Relocation Destinations

The Sunshine Coast in South East Queensland tops the list as the most favoured destination, capturing 16% of net internal migration in the past year. Other attractive regions include the Gold Coast, Wollongong, Newcastle, Lake Macquarie, Moorabool, Geelong, the Alexandrina region, the Fraser Coast, and Launceston.

Western Australia is also gaining popularity, with Busselton, Capel, Greater Geraldton, Northam, and Albany emerging as hotspots this quarter.

Comparing Regional Home Values to City Prices

According to CoreLogic, the median home value across Australia’s capital cities is around $864,780. In contrast, regional markets have a median value of $626,888, a significant difference of $237,892.

The price gap can be even larger, depending on the specific areas. Mastering fair pricing in real estate is a way of smart home buying. For example, in Sydney, the median house value is $1,441,957, while a house in regional NSW could cost around $760,000—a potential saving of about $680,000!

Lower Loan Repayments with Regional Living

Purchasing a more affordable home can also lead to reduced loan repayments and a lower stamp duty bill.

Consider the earlier figures: deciding between an $864,780 city home and a $626,888 regional home, with a 20% deposit of $173,000. Assuming a home loan rate of 6.4% (the current average principal and interest variable rate according to the Reserve Bank of Australia) and a 30-year loan term, the initial mortgage for the city home would be about $692,000. This translates to monthly mortgage repayments of approximately $4,329.

For the regional property, the initial mortgage would be around $454,000, with monthly repayments of roughly $2,840. This means a monthly saving of $1,489 by moving to a regional area, freeing up extra money for your home, personal expenses, or lifestyle.

Considering Capital Growth

Predicting future property values is always uncertain. However, historical data can offer some insights. CoreLogic reports that since March 2020, regional property values have surged by 51.1% ($212,000) nationally, compared to a 31.5% increase ($207,000) in state capitals. In terms of dollar value, the capital gains have been relatively similar across both markets in recent years.

Ready for Your Home Among the Gum Trees?

While regional living isn’t for everyone, and moving from a capital city requires thorough planning and research, it could be the right move for those seeking to invest in a home property with a more manageable mortgage.

If you’re considering a tree or sea change, Osinki Finance can help you hasten the process without the hassle. We offer brokerage services in several locations, ensuring personalised assistance tailored to your regional relocation needs.

Get in touch with us to explore home loan options that can help you make the transition sooner. Your dream property is awaiting your arrival!

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.