A lot of people say you need to invest in a capital city if you want to get a capital growth but is that actually the case?
Do capital cities grow faster than rural areas?
So do capital cities actually grow faster than rural areas?
Everyone says that they do, and if you want city capital growth you need to invest in capital cities. So let’s have a look at how cities are growing compared to rural areas and see if this is the case.
NSW – Average 20 Year Growth
Sydney – 7.12%
Rural NSW – 5.9%
VIC – Average 20 Year Growth
Melbourne – 7.68%
Rural VIC – 6.45%
QLD – Average 20 Year Growth
Brisbane – 6.52%
Rural QLD – 5.52%
The capital city outperformed their rural counterparts in every single example that I saw.
The only one that I couldn’t see data on was Tasmania.
So in every single example the capital city was outperforming the rural areas.
Not All Capital Cities Outperform All Rural Areas
However this does not mean that all Capital cities outperformed all rural areas. In fact, if you looked at Rural WA, it performed at 6.9% which was higher than the ACT, Adelaide and Brisbane.
So even though rural WA is a rural area, it outperformed some of the major capital cities.
So not all capital cities are better then all rural areas and many localised country areas can far outperform capital cities.
It’s all about looking at the economic growth of an area, the supply and the demand and also things like infrastructure, growth in population, all of this sort of stuff.
It’s about buying right (learn more about researching), it’s about buying in the right area, it’s not just about capital city versus rural area. If you get the right rural area, then you are going to smash it and you can see returns above and beyond potentially anything you would see in a capital city.
I mean look at the growth that we have seen in mining towns. In some mining towns growth has been phenomenal and growth that you would never experience, if you bought a property in Sydney.
So do capital cities grow faster than rural areas?
If we look at the country as a whole, then yes, it does, but if we took specific rural areas, we could definitely find some stand outs there, that outperformed the capital city counterparts.
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