Remote working has become the new normal for many Australians due to COVID-19. This, in turn, has sparked interest in regional property as city dwellers look to ditch the rat race for country living. They’ve been dubbed the VESPAs or Virus Escapees Seeking Provincial Australia by Bernard Salt.

Where are people relocating to? And what are the pros and cons of doing so?

Popular areas

Zoom can only do so much. So while you might want flexible work arrangements, you’re often still required to make the occasional appearance in the office. Unsurprisingly then, popular areas tend to be those located within an easy commute to the capitals.

Places like Bowral, Wollongong and the Central Coast.

Median house prices in all three increased in the year to September:

• In Bowral, values grew by 23.7% to $1,135,000 – with a 10.91% gain in the June quarter alone

• In Wollongong, they increased by 8% to $784,200

• In the Central Coast, they gained 5.2% to $762,200

The pros and cons of a move

The pull of the countryside is self-explanatory – less traffic, beautiful views and a relaxed pace of life. On top of that, as Sydney property ranks as some of the world’s most unaffordable, you often get a lot more property for your dollar in the regions.

But those wide-open skies and rolling hills can come at a cost.

There’s the loss of convenience, especially when it comes to schooling, healthcare and other services. And while regional markets might be booming now, property values in the capitals have gained better historically.

Then you have to consider the potential challenges of getting a mortgage for your place in the country.

Lenders’ mortgage restrictions

When you apply for a home loan, lenders use different criteria to judge how much risk your application poses. These can include both the location and the size of the property you want to buy.

With location, lenders assign postcodes into risk categories based on their population, real estate values and the strength of their economy. The higher risk the category, the less you can borrow. To further complicate matters, each postcode may end up in a different category depending on the lender.

With land size, lenders can be concerned that larger properties will be harder to sell in the future. So some may reject your application if your plot is too big.

These restrictions can make choosing a lender difficult. You don’t want to approach the wrong lender and get rejected – potentially impacting your credit rating in the process. So it can be a good idea to visit an experienced broker who can help you select the right lender for your regional purchase.

Want to trade your city lifestyle for country living? We’ve helped many Australians finance their tree-changes, and can help you too. Schedule a no-obligation consultation with Alex to find out more.