Regionals time in sun?

Discussion in 'Where to Buy' started by BobFromBrisbane, 7th Apr, 2020.

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  1. BobFromBrisbane

    BobFromBrisbane Member

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    Just thinking ahead here - 12-24 months of lockdown / disruption... 20% unemployment, mass bankruptcies, depression level stuff etc...

    Also there will be many workers who can prove that they can do their jobs better from home...

    I assume they won’t need or want to live in a city environment, post pandemic as firstly limited amenities, secondly higher chance of infection but mostly cost! All the big corporates are cutting staff or reducing pay by 20% etc..


    This mass migration to regional locations could happen sooner rather than later... thoughts?
     
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  2. Xiao Hui

    Xiao Hui Well-Known Member

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    This will have to depend on the length of the shutdown for us to see the effect. If the lockdown is more than 12 months, we should see some very real effect.

    On the positive side, this virus will forever change the way how people used to think. The concept of remote working is one of this. Companies are now forced to practice this and it will surely make people rethink the need to live in capital cities. The longer the virus is around us, the more people will be encouraged to live in Regionals. Imagine being able to work from home, but free from the heavy traffic and high costs of living?

    Also, living in regional has a practical aspect of making one less susceptible to catching the virus. If you examine the affected cases, the worst are usually in the highly populated capital city areas. And this is logically so as closer and greater contact with people increase the chances of one getting it. But in Regionals where population densities are lower, this likelihood is diminished.

    Not just individuals, this virus might perhaps also hasten the resolve of the various state governments to decentralise and make them move their work outwards to the Regionals more vigorously? Having all eggs in the capital cities is not helping them run an effective operation should a virus break out again. It is like having a choice of a second or third capital should your current capital city get overrun or locked.

    I believe the above will happen. Not overnight but surely and slowly. The larger and more well established Regionals should benefit from the above.
     
    Last edited: 7th Apr, 2020
  3. BuyersAgent

    BuyersAgent Well-Known Member Business Member

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    Yes it started with me. I got in 12 years early but I knew this day was coming.
     
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  4. BobFromBrisbane

    BobFromBrisbane Member

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    haha early adopter indeed!!
     
  5. BobFromBrisbane

    BobFromBrisbane Member

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    quite true, and really crisis just accelerate existing trends... but this one quite rapidly...

    i should note I expect regionals to fall less than cities, both will get slammed in next year or two, so also agree, no rush
     
  6. BuyersAgent

    BuyersAgent Well-Known Member Business Member

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    Not all regionals will perform equally. I was on the phone to the owner of the largest rent roll in a smaller regional a few hrs away the other day. I asked him how many disruptions to tenancies or notifications of rent delay or non payment he was getting with COVID and the non eviction announcement. He said out of 450 properties he had 2. One was already a chronic non payer and before the tribunal. So 1 out of 450 in that case. The major projects already underway in that town and others like it will continue to drive employment and demand. Sustained vacancy rates under 1% mean people are grateful to have a rental.

    Lifestyle destinations will continue and accelerate to attract seachange and greenchange folk in my opinion. Coupled with a local tourism boom once we are allowed to travel internally.

    On the other hand any areas with high exposure to city style entertainment, international tourism, international students/airbnb properties and food/shopping hubs may suffer more in the short and medium term. Buying opportunities will arise but more falls to come first for those locations.
     
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  7. BobFromBrisbane

    BobFromBrisbane Member

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    very good points.... once one takes away commute times from equation... I wonder what will be biggest factors....Internet quality? Beaches? Good sourdough?
     
  8. MichaelGarland

    MichaelGarland Well-Known Member

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    Which city was that?
     
  9. MichaelGarland

    MichaelGarland Well-Known Member

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    Geelong will remain a strong market?
     
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  10. JohnPropChat

    JohnPropChat Well-Known Member

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    Why buy in whoop whoop when the same money can fetch something good in a major capital city i.e. Perth.
     
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  11. BobFromBrisbane

    BobFromBrisbane Member

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    because if you can do your job remotely now (as many people are proving currently), why pay 5X the price... also cities will be shut down for a while now and will be different places post pandemic
     
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  12. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    I was having this conversation with Hubby yesterday too. If social distancing is a longer term scenario, I reckon people might well migrate out of units/apartments and live further out, and now that people know working from home isn't all bad...there's definitely scope for a shift in the way we live as a whole.
     
  13. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    All of the above. :)

    But immovable lifestyle like beaches first and foremost - the sourdough will come ;)
     
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  14. BobFromBrisbane

    BobFromBrisbane Member

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    Who knows, we may all be so successful making our own sourdough and coffee at home we just won’t need as many cafes in future! My daughter has started a sourdough culture thingy last couple of days
     
  15. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    Ha! All the cool kids are - we started brewing our own kombucha recently, hubby is awesome at it!

    But haven't tried sourdough yet.
     
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  16. BuyersAgent

    BuyersAgent Well-Known Member Business Member

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    Kombucha is easy. Haven't nailed the sourdough myself though some friends have. But yes, I believe good coffee and food follows good beaches and scenery which is much harder to change.
     
  17. Trainee

    Trainee Well-Known Member

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    Price difference was there before the virus though. People live in the city for the bars and restaurants and the 'idea' of living in the city. That wont change. If anything expect nightlife to be even crazier after the coronavirus lifts
     
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  18. spludgey

    spludgey Well-Known Member

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    Prediction*: Rockhampton, Logan and Elizabeth will double in value and rental income very soon!

    *might be more of wishful thinking rather than a prediction...
     
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  19. Mick Butterfield

    Mick Butterfield Well-Known Member

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  20. JohnPropChat

    JohnPropChat Well-Known Member

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    5X the price? Exactly how cheap are these regionals you are talking about? Perth, one can get a house for sub-$300k less than 20k from the city.