Thinking of a Tree or Sea Change?

Image of treed ocean road with calm seas

Fresh air, less traffic, and more affordable home prices—there are many reasons why regional living is becoming increasingly attractive to Australians. One of the significant benefits is the potential to reduce your home loan.

The Appeal of Regional Living for Aussies: a growing trend

The classic tune ‘Home among the gum trees’ is fast becoming an anthem for many Australians. Research from Commonwealth Bank reveals

a growing trend of city residents moving to regional areas, with metro to regional relocations now 20% higher than pre-Covid levels. This shift underscores the numerous advantages regional towns and cities offer.

What’s the Draw?

Apart from a laid-back lifestyle and the novelty of seeing native wildlife on your way to work instead of endless traffic lights, the affordability of housing in regional areas is a major drawcard.

Popular Destinations

The Sunshine Coast in South East Queensland has emerged as the most popular destination, capturing 16% of net internal migration over the past year. Other sought-after regions include the Gold Coast, Wollongong, Newcastle, Lake Macquarie, Moorabool, Geelong, the Alexandrina region, the Fraser Coast, and Launceston. Western Australia is also on the rise with hotspots like Busselton, Capel, Greater Geraldton, Northam, and Albany.

Regional Home Values vs. City Prices

According to Corelogic, the median

home value in Australia’s capital cities is approximately $864,780. In contrast, the median value in regional markets is about $626,888—a significant difference of $237,892. The disparity can be even greater depending on specific locations. For instance, Sydney’s median house value is $1,441,957, whereas in regional NSW, it’s closer to $760,000, offering a potential saving of around $680,000.

Financial Benefits of Regional Living

Purchasing a more affordable home can lead to substantial savings, including lower stamp duty and reduced home loan repayments. Consider a scenario where you choose between an $864,780 city home and a $626,888 regional home. According to the Reserve Bank of Australia,

the average home loan interest rate is 6.4% currently.  So, with a 20% deposit of $173,000 and a home loan rate of 6.4% over 30 years, the initial mortgage for the city home would be around $692,000 with monthly repayments of about $4,329. In comparison, the regional property would have an initial mortgage of $454,000, resulting in monthly repayments of approximately $2,840. This translates to a monthly saving of $1,489, which can significantly enhance your lifestyle.

Considering Capital Growth

While future property values are unpredictable, historical data provides some insights.  Corelogic reports

that regional property values have increased by 51.1% ($212,000) nationally since March 2020, compared to a 31.5% ($207,000) rise in capital cities. This indicates similar capital gains in dollar terms for both markets in recent years.

Ready for a Change?

Regional living isn’t for everyone and requires careful planning and research. However, if you’re seeking a home with a more manageable mortgage, contact us today on 1800-E-LOANS to explore loan options that can help you achieve that dream of a tree or sea change sooner.


1800 35 62 67

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.

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