When the property markets in capital cities are going strong, markets all over Australia usually tag a long for the ride. Regional towns, coastal towns and tourist areas are benefiting of the ripple effect of the growth in capital cities. All of a sudden any property starts looking like a great investment. But does that mean it is?

When most people see how much property prices are in their capital city, they tend to think it’s too expensive to buy and buying in regional areas for a lower amount makes more sense, especially if rental yields are higher. This gives most people comfort knowing that they don’t have to spend so much to buy a property and they don’t miss out. FOMO at its best.

So, if all you can service is enough to buy a property in a regional town, should you just buy one? Short answer is No.

Let me tell you why