Regional markets are making a comeback with some areas showing signs of growth as Sydney and Melbourne slow down. I think that these regional markets are looking attractive as investors look for the next best markets to invest as the money needs to flow somewhere. Some of these regional markets are showing growth of close to 10% p.a. I would personally be very careful of these markets. I have seen many people get burnt in these areas as they tend to rely on one type of job. When the need for that job slows down (e.g. Mining) you can be left with an asset and no tenant. This can be disastrous for investors were cash flow is paramount to a healthy portfolio.

I never place my clients into regional markets for this very reason. While they can provide good gains at times, I feel they carry too much risk. I wouldn’t invest there myself so I would want my clients to. Stick within a reasonable distance to the big 3 capital cities and you will be much safer and have a far better long term investment.