Property Investors Look Further Afield For Opportunities

More investors are looking beyond the neighbourhoods they live in for investment opportunities after the pandemic property boom saw regional markets surge in value at a greater pace than the capital cities, as more people who could work from home left the cities for greener pastures.

McGrath Estate Agents CEO John McGrath said this regional relocation of owner-occupiers opened investors’ eyes to markets outside their own neighbourhoods. Changes in marketing and technology brought about due to lockdowns, such as video inspections, online auctions and signing contracts electronically, helped buyers feel more comfortable with purchasing property remotely. “The prospect of phone bidding and purchasing properties sight unseen is no longer foreign,” he said.

Data from MCG Quantity Surveyors proves that investors are exploring new markets for investment. The latest data for 2023 shows the average distance between where landlords live and invest has ballooned to 1,502km, up from 857km in 2022 and 294km before the pandemic.

MCG managing director, Mike Mortlock, said the data revealed two insights. “Firstly, property investors remain agile and will park their capital in whichever investor-friendly national location and asset type offers the greatest possibility of maximising their return,” he said. “The second is that Western Australia has become the centre of Australian property investment. There’s little doubt its popularity with real estate buyers from the East Coast has increased the gap between home and investment.” MCG data shows 31.86% of Australian property investors bought in Western Australia in the first quarter of 2023, up from just 9.38% in the first quarter of 2022, revealing “a seismic shift away from east coast property investment”, he said.

In 2023, CoreLogic data shows Perth and Regional Western Australia delivered the best total returns (rents and capital growth combined) for investors of all capital cities and regional areas in Australia. Perth’s total return was 20.7 percent and regional Western Australia’s was 14.8 percent. The best-performing regions were Mandurah and Bunbury with 20 percent and 15 percent jumps in home values respectively over the year. Rents in Perth and Regional Western Australia also increased faster than any other area in Australia, up by 13.4 percent and 10.4 percent respectively.

One of the main attractions of Western Australia to East Coast investors is affordability. The Perth house price median is $691,100 and the regional house price median is $398,915. McGrath Estate Agents CEO John McGrath said: “This move towards remote investing has largely been driven by the perception of better capital growth prospects in the regions, and higher rental yields that usually come with more affordable properties.” Investors in regional areas can usually afford to buy houses, which typically deliver better capital growth than apartments, and they can buy with smaller loans, meaning they can manage rising interest rates more easily.

PropTrack recently put together a panel of industry experts and asked them to create a list of 100 suburbs that they think will outperform in 2024. PropTrack economist Anne Flaherty said 40 percent of the suburbs selected were in regional areas. PropTrak director of economic research Cameron Kusher said the selected regional areas were typically close to a capital city or had a diversified economy. “These tend to be key drivers in regional markets and reflect our expectations of the types of locations in regional areas likely to see the strongest price growth next year,” he said.

Here are some examples of the regional cities or suburbs tipped for outperformance in 2024.

NSW – Dubbo

Simon Pressley of Propertyology selects Dubbo. “Decades of official evidence supports Dubbo’s status as an extremely resilient and low risk option for property investors with a budget of up to $600,000,” Mr Pressley said.

VIC – Delacombe, Ballarat

Buyers’ agent Kate Hill from Adviseable says Delacombe is a fast-growing part of the Ballarat West Growth Area and offers strong capital growth potential and good yields. “Ballarat was recently identified by the ABS as the fastest growing inland city in Australia and, according to some forecasters, can expect more strong price growth,” she said.

QLD – Darling Heights, Toowoomba

Home to the University of Southern Queensland, Ms Hill says Darling Heights has a range of amenities and will benefit from Toowoomba’s involvement in the 2032 Olympics. “There is a massive program of infrastructure development underway, planning more than $13.1 billion of infrastructure and major projects, both private and public,” Ms Hill said.

SA – Victor Harbor

Mr Pressley says Victor Harbor is to Adelaide what the Sunshine Coast is to Brisbane. “It has one the highest rates of internal migration in the country. Very popular for the one in five Australians who now derive their income from home, and for retirees.”

WA – Mandurah

“Mandurah is the lifestyle capital of Western Australia because of everything it has to offer without the big price tag,” said Ray White Managing Director, Dan White. “When it comes to property, Mandurah offers something for everyone, from affordable options for first-home buyers to upmarket canal homes.”

TAS – Launceston

Mr Pressley says this regional city has a diverse economy and “one of the best lifestyle offerings in all of Australia”. “Over the last 20 years, the average annual capital growth rate for Launceston houses of 8.6 percent is far superior to Sydney and Melbourne. Rental yields are also superior.”

Must even steak be politicised? The American Heart Association recently recommended eating more “plant-based” protein in a move to counter the Health and Human Services Department’s new guidelines calling for more red meat.

Few would argue that eating a Big Mac a day is good for you.

On the other hand, growing evidence, including a study last month in the Journal of the American Medical Association, suggests that eating more meat—particularly unprocessed red meat—can reduce the risk of Alzheimer’s in the quarter or so of people with a particular genetic predisposition.

The APOE4 gene variant is one of the biggest risk factors for Alzheimer’s.

You inherit one copy of the APOE gene from each parent. The most common variant is APOE3; the least is APOE2.

The latter carries a lower risk of Alzheimer’s, while the former is neutral. A quarter of people carry one copy of the APOE4 variant, and about 2% carry two.

APOE4 is more common among people with Northern European and African ancestry. In Europe the variant increases with latitude, and is present in as many as 27% of people in northern countries versus 4% in southern ones. God smiled on the Italians and Greeks.

For unknown reasons, the APOE4 variant increases the risk of Alzheimer’s far more for women than men.

Women’s risk multiplies roughly fourfold if they have one copy and tenfold if they have two. Men with a single copy show little if any higher risk, while those with two face four times the risk.

What makes APOE4 so pernicious? Scientists don’t know exactly, but the variant is also associated with higher cholesterol levels—even among thin people who eat healthily.

Scientists have found that cholesterol builds up in brain cells of APOE4 carriers, which can disrupt communications between neurons and generate amyloid plaque, an Alzheimer’s hallmark.

The Heart Association’s recommendation to eat less red meat may be sound advice for people with high cholesterol caused by indulgent diets.

But a diet high in red meat may be better for the brains of APOE4 carriers.

In the JAMA study, researchers at Sweden’s Karolinska Institute examined how diet, particularly meat consumption, affects dementia risk among seniors with the different APOE variants.

Higher consumption of meat, especially unprocessed red meat, was associated with significantly lower dementia risk for APOE4 carriers.

APOE4 carriers who consumed the most meat—the equivalent of 4.5 ounces a day—were no more likely to develop dementia than noncarriers. (

The study controlled for other variables that are known to affect Alzheimer’s risk including sex, age, physical activity, smoking, alcohol consumption and education.)

APOE4 carriers who ate the most unprocessed meat were at significantly lower risk of dying over the study’s 15-year period and had lower cholesterol than carriers who ate less. Go figure. Noncarriers, however, didn’tenjoy similar benefits from eating more red meat.

The study’s findings are consistent with two large U.K. studies.

One found that each additional 50 grams of red meat (equivalent to half a hamburger patty) that an APOE4 carrier consumed each day was associated with a 36% reduced risk of dementia.

The other found that older women who carried the APOE4 variant and consumed at least one serving a day of unprocessed red meat had a cognitive advantage over carriers who ate less than half a serving, and that this advantage was of roughly equal magnitude to the cognitive disadvantage observed among APOE4 carriers in general.

In all three studies, eating more red meat appeared to negate the increased genetic risk of APOE4.

Perhaps one reason men with the variant are at lower Alzheimer’s risk than women is that men eat more red meat.

These findings might cause chagrin to women who rag their husbands about ordering the rib-eye instead of the heart-healthy salmon.

But remember, the cognitive benefits of eating more red meat appear isolated to APOE4 carriers.

Nutrition is complicated, and categorical recommendations—other than perhaps to avoid nutritionally devoid foods—would best be avoided by governments and health bodies.

Readers can order an at-home test from any number of companies to screen for the APOE4 variant.

The Swedish researchers hypothesize that APOE4 carriers may be evolutionarily adapted to carnivorous diets, since the variant is believed to have emerged between one million and six million years ago during a “hypercarnivorous” period in human history.

The other two APOE variants originated more recently, during eras when humans ate more plants.

APOE4 carriers may absorb more nutrients from meat than plants, the researchers surmise. Vitamin B12—low levels have been associated with cognitive decline—isn’t naturally present in plant-based foods but is abundant in red meat.

Foods high in phytates (such as grains and beans) can interfere with absorption of zinc and iron (also high in red meat), which naturally declines with age. So maybe don’t chuck your steak yet.