Landlords choose profit over proximity as interest in remote investing grows.

With the rise of regional living during the pandemic, as well as technological advancements, more investors are turning to real estate markets outside of their own neighbourhoods.

The average distance between landlords' homes and their investments, according to data from MCG Quantity Surveyors, is 857 km, up from 559 km in the year to November 2021 and from 294 km in the pre-pandemic period to January 2020.

To put this in perspective, it is less than 100 kilometres from Sydney's central business district to the Blue Mountains. Therefore, an average distance of 857km shows that more people are making investments in interstate and regional locations.

The pandemic and the ability to work from home prompted a significant exodus from Australia's major cities, particularly Sydney and Melbourne, to the country's rural areas. In the most populated regional centres, this increased both rental values and capital values, creating appealing rising markets for investors.

During the pandemic, regional economic growth outpaced that of urban areas. Investors may believe that regional areas have more room for long-term growth because they are starting from a much lower price base.

Considering more affordable markets may have been prompted by the recent sharp increase in interest rates and the stricter new loan assessment standards.

Due to the lower price points, more investors can afford to purchase a home in a regional area. In Australia, houses typically increase in value more quickly than apartments.

During the pandemic, real estate technology advanced significantly. Video inspections, online bidding, and electronic contract signing were all adopted quickly by the public. Nowadays, it's simple to buy online, which may be motivating investors to look beyond their local markets for the best opportunities.

Because they provided quick access to family members who lived in the city as well as other business and cultural activities, areas 90 minutes or less from Brisbane, Sydney, and Melbourne were the most popular with people fleeing the cities during the pandemic.

Many investors are looking to invest their money in safe assets in regions with promising growth prospects because they can no longer afford to buy in the inner city.

A wealthier, more sophisticated market has arrived, which has led to a significant improvement in the quality of developments in some regional areas.

As an example, Sydney-caliber apartment buildings are now being designed and constructed on the Central Coast.

Regional towns are no longer thought of as sleepy little places with slow population growth.

Over the past two decades, many of Australia's most well-liked regional towns have grown to the point where they are now small cities in their own right with thriving local economies.

Significantly improved road infrastructure has also increased accessibility between important regional areas and the cities.

If you want to learn more about how to start your remote investing portfolio, please get in touch with us. We look forward to helping you achieve your investment goals.