As the property market in Greater Brisbane becomes increasingly challenging for investors, many savvy buyers are turning their attention to interstate regional investment properties—particularly in booming regional towns across New South Wales.
In this blog post, we’ll break down the difficulties investors are facing in Brisbane, explore why investing in regional NSW property is a game-changer, and show you how to diversify your portfolio for stronger returns and fewer headaches.
The Growing Challenges of Investing in Brisbane Property
The Brisbane property market has performed well over the last few years, but it’s now presenting several roadblocks for investors looking to grow their portfolios.
1. Lack of Diversification Poses a Risk
One of the golden rules of investing is diversification—don’t put all your eggs in one basket. If you only own property in one region and that market softens, your whole portfolio takes a hit.
Brisbane-based investors often find themselves overexposed in a single market. If Brisbane’s growth stalls or corrects, there’s no safety net. By spreading investments across different states and cities, you insulate your wealth from regional downturns
2. Soaring Property Prices
The days of affordable investment properties in Brisbane are mostly behind us. North and South Brisbane suburbs are now averaging around $850,000, and entry-level options are few and far between.
For many investors, this has created a barrier to entry. When land is scarce and prices are inflated, it becomes difficult to find good-value investment properties that yield attractive returns.
3. Rental Yields Are Underwhelming
While Brisbane property prices have skyrocketed, rental returns haven’t kept pace. A typical $800,000 house in Brisbane still rents for around $650 per week, delivering a modest yield of approximately 4.2%.
When you factor in maintenance costs, loan interest, and rising property taxes, the net return on Brisbane properties can be disappointing—especially compared to lower-cost, higher-yielding options in regional areas.
4. Borrowing Capacity Is Maxed Out
Many investors in Brisbane have good equity in their homes, but equity alone doesn’t get you over the line. With interest rates higher than they were during the COVID boom, borrowing capacity is now a real constraint.
It’s become difficult for investors to qualify for an $800,000+ investment loan—especially if their current income isn’t rising as fast as the cost of borrowing.
5. Land Tax Catches Investors Off Guard
Many investors don’t realize they become liable for Queensland land tax once the unimproved land value of their investment properties exceeds $600,000.
At today’s property values, even owning two modest investment properties could trigger this tax—eroding rental returns and cash flow.
Why Interstate Regional Property Investment Makes Sense
With Brisbane becoming harder to navigate for investors, smart buyers are now looking interstate—and many are finding strong opportunities in regional New South Wales.
Here’s why regional property investment is proving to be a winning strategy in 2025.
1. Regional NSW Properties Are Affordable
You can still find high-quality investment properties in regional NSW for under $650,000. For example, we’ve sourced dual-key homes in thriving towns for around $620,000, generating a rental return of up to $830 per week.
That equates to a yield of roughly 6.9%, significantly outperforming Brisbane in both cash flow and return on investment.
2. Regional Towns Are Booming
Thanks to lifestyle changes, remote work, and better infrastructure, regional NSW towns are growing rapidly. Populations are increasing, job opportunities are expanding, and demand for housing is rising.
Retirees and remote workers are leaving the big cities and settling in regional hubs for affordability, peace, and lifestyle. This is driving 10%+ annual capital growth in some areas—making them prime real estate investment hotspots.
3. Easier to Qualify for Finance
Due to the lower purchase prices, it’s significantly easier to qualify for loans to buy regional properties. Even if your borrowing capacity is constrained, you may still be able to invest in a positively geared property in regional NSW.
When the rental return is strong and the purchase price is modest, lenders are more willing to finance your investment. That means more doors open, especially if you’re equity-rich but income-limited.
4. No Land Tax in QLD for Interstate Investments
Perhaps one of the biggest hidden benefits of investing in interstate regional properties is that interstate land value does not count towards Queensland’s land tax threshold.
If your only investment properties are interstate, you won’t be hit with Queensland land tax—even if you own multiple homes. This can save you thousands every year and dramatically improve your overall return.
The Benefits of Diversifying into Regional Interstate Property
Combining Brisbane’s property gains with regional investments allows you to:
Spread your risk across multiple markets
Unlock better rental yields
Access more affordable investments
Reduce your land tax liability
Build long-term capital growth in emerging areas
We’ve done the hard work of identifying top-performing towns and property types. Our current opportunities include dual-key homes, house-and-land packages, and turnkey properties in regional NSW with high yield and capital growth potential.
Is It Time for You to Go Interstate?
If you’re feeling the pinch of Brisbane’s expensive and competitive property market, now might be the perfect time to diversify and expand your investment portfolio interstate.
Whether you’re a first-time investor or an experienced buyer looking to grow, interstate regional property could be the key to unlocking your next wealth-building move.
Let’s Talk About Your Investment Goals
If you’re interested in learning more about high-yield regional properties in NSW, I’d love to chat. I can show you:
Which towns are growing rapidly
What kinds of properties are producing the best returns
👉 Click here to schedule your free consultation or call me directly.
Let’s find the perfect interstate property investment to suit your goals and budget.
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