We are two young Aussies who can’t afford to buy property in the capital cities. So we’ve gone down a different path… and believe we’re on track to retire early

Young Australians looking to get on the property ladder are discovering their only option is to buy in regional areas, thousands of miles from where they live.

While this isn’t exactly a desirable path – and few are likely to take the plunge – experts predict these buyers will reap the financial benefits in the years to come.

It comes as first home buyers are still struggling to buy property in the capital cities, with the average house price in Sydney exceeding $1.6 million.

Sydneysider Poppy Whale, 21, was able to buy her first property – a three-bedroom house worth $386,000 – by expanding her search to Geraldton, a regional coastal city of 40,000 people located 420 kilometers north of Perth.

Stephanie Cortis, 28, also from Sydney, followed a similar path by purchasing Gracemere, a town of 11,000 people 9km west of Rockhampton, Queensland.

These two young women share a similar dream: to be financially secure and hopefully retire early.

Poppy, an HR worker, started looking for properties in February and quickly realized she couldn’t afford to buy in Sydney, so she looked elsewhere.

With the help of a purchasing agent from Compound Property, she eventually bought a 700 sqm property on the other side of the country – and a four-hour drive from the nearest capital.

“I traveled a few years ago but now want to use my money wisely to benefit in the long term,” Poppy told FEMAIL.

The 21-year-old started working full-time eight months ago and has been saving since she got a casual job at the age of 14.

She managed to come up with a $65,000 down payment and knew she had to use it wisely.

The property was settled earlier this month and Poppy is still coming to terms with the fact that she is now a landlord.

In just over 12 months, the value of her property has increased by €101,000, after previously selling it for €285,000 in January 2022.

Steph bought her first three-bedroom home in western Sydney in 2019 while living at home, and bought her second in regional Queensland while renting.

Despite having two mortgages, she doesn’t feel financially strapped and can still go on holiday abroad thanks to her six-figure marketing manager income and positively aligned properties.

‘Money doesn’t scare me. “I still live my life and go out with friends, but I’m not a big spender either,” she said.

‘I am very shopping savvy and almost never pay full price for clothes. I only spend on special occasions, for example when I get a bonus at work.’

Steph said she likes to ‘rent vest’ by living in Sydney’s eastern suburbs and buying elsewhere as she can live the lifestyle she enjoys and invest in property at the same time.

She also commented on the current state of the Australian property market and the change in behavior of some buyers.

“I think it’s important to keep your ear to the ground and work with advisors to give you support rather than wallow in it. [the] fact that you can’t afford certain cities like Sydney,” she said.

‘I’ve even spoken to friends who are thinking about investing abroad.

‘There’s a big move away from buying a property to live in and instead having investments behind you. Gone are the days of our parents buying huge properties and working to pay it off.

“Now many people are diversifying their portfolios to leverage their money over time.”

Ben Carrington, a buyer’s agent at Compound Property, told FEMAIL there are a few reasons why Australian buyers are turning away from cities.

‘I think there is now more awareness about the possibility of investing outside of where you live. Technology, podcasts, education and the data available have made it a lot easier to research and buy interstate,” he said.

‘As our major capital cities have grown in value to somewhat unaffordable levels, this has also forced many young investors to look at different regions that offer much more affordable options with typically better cash flow and good growth potential.’

Mr Carrington talked about rising property prices in regional areas.

“Investing in regional, more affordable areas gives investors the opportunity to enter the real estate market and build their portfolio,” he said.

‘For those who have done so in recent years there has been significant capital growth and with the low vacancy rate they have also seen large rental growth and we expect this trend to continue.’

He said investors were currently most interested in Queensland, Western Australia and South Australia.

And while all hope is not lost for those hoping to buy in Sydney or Melbourne, Mr Carrington warned it is “certainly getting a lot harder” in those cities.

‘It was recently reported that a couple would need to earn $293,578 to afford a mortgage on the average house price in Sydney. Melbourne was less at $189,962, but it is still a large income and does not include the amount needed to save,” he said.

“That said, one of the most common goals of our clients is to buy the dream home in Sydney or Melbourne and they use the ‘rentvesting’ strategy to get there.”