Investors considering buying property in Australia should focus on the possibility of buying homes in rural areas rather than placing all their focus on the country's major conurbations, an expert has suggested.
Writing in the Property Observer, Terry Ryder claimed that the focus placed on capital cities across Australia is unwise given that rents look likely to fall in many of these places.
He cited a recent report from Australian Property Monitors showing zero growth in most urban markets as evidence of this.
However, Mr Ryder argued rural areas, especially those currently benefiting from the mining boom, potentially profitable investments.
"The best places to invest are found outside the capital cities, where prices are cheaper, returns higher and capital growth prospects better," he suggested.
Property investment expert Michael Yardney recently argued that rental growth is likely to increase in 2012 given the ongoing squeeze in vacancy rates.
Posted by Craig Francis
