When looking to move away from the big “smoke”, whether for retirement, better lifestyle, or for affordability, consideration for the long-term outcomes should persuade your decision if you want to make a wise move. Some buyers prefer the tranquillity of coastal living but still being within close proximity to shops and amenities, whilst others may prefer the privacy of being completely remote in the country. Regardless of your preference, what would be the smarter choice for better long-term outcomes? Your decision will shape your long-term financial outcomes and each choice will have trade-offs, so we explore the pros and cons of each.
Coast vs Country
Taking an overall view of coastal properties, they are located near the ocean and usually within already established towns. Coastal towns will usually be busier as they boast both tourism appeal and strong lifestyle demand.
Compare this to country property that sits further inland, on large parcels of land with smaller towns and a strong community.
Coastal Living
Buying and living on the coast.
Coastal properties consistently demand premium prices, obviously due to the natural beauty and lifestyle appeal, but sometimes properties might be overpriced which will restrict the future capital growth of the property.
Advantages of Coastal Property.
Coastal properties carry a level of prestige which comes along with emotional appeal and a compelling lifestyle. Compared to country properties, coastal properties are more convenient because they have better access to amenities and infrastructure.
They often have access to:
– Healthcare (hospitals and doctors)
– Supermarkets and shopping centres
– Schools and childcare
– Café’s, Restaurants, and entertainment.
– Public transport
From a long-term perspective, coastal properties would expect strong rental demand, higher rental yields if used for holiday accommodation, capital growth potential due to strong desirability.
Disadvantages of Coastal Property
The benefits and beauty of living on the coast comes at cost, literally. The entry prices are significantly higher the closer to beachside you approach; this will limit the affordability and rental yields and sacrifices may need to be made to get into a desirable suburb or street.
Other considerations when living by the coast are environmental risks, which could lead to high maintenance costs due to coastal erosion, storms and flooding, salt air and moisture damage. Due to this, some coastal properties may command higher insurance premiums which is an ongoing cost.
If the property is used as a holiday rental, returns may be unreliable because they are reliant on seasonal volatility due to tourism peaks.
Country Living
Buyers who are seeking privacy, space, an easy quiet lifestyle, alongside affordability might consider a tree change.
Apart from affordability, country living brings larger parcels of land, flexibility with land use, and a grounded lifestyle that can be quite self-sufficient. There are many regional markets that are becoming emerging with cafes, restaurants, and entertainment precincts (or festivals and events at certain times of the years), so you do not necessarily need to give up some of the city comforts when moving to country-style living.
The main disadvantages are around the trade-offs made in access and convenience. You will likely have limited access to hospitals and healthcare in particular specialists which is a consideration if the property is going to be for your retirement. Fewer options for schooling and education.
You will need to be more self-sufficient with a lack of public transport.
If the property is an investment, you may have less tenant demand. If it is to be used for a holiday rental there may be less demand if the property is not well located to main roads or difficult to locate. When it comes times to sell, the days on market are higher than coastal properties and you may have less competition wanting to buy your property which impacts the sales price.
Rural properties are also highly influenced by economic downtowns as typically country towns have a local industry driving the market such as agriculture, farming, or mining.
Australian countryside
Does access to essential services make all the difference?
One of the most important distinctions between coastal and countryside property is access to essential services. Coastal locations are more likely to have established hospitals, GP’s, and healthcare facilities available. Shopping centres and transport networks can also be typically found around coastal destinations, but is this what gives the countryside its charm? The exclusivity and remoteness of the countryside might be what gives it its appeal.
When it comes to investment performance, there is no surprise that coastal properties tend to outperform countryside properties in a few key areas:
– Capital growth potential
– Consistent lifestyle demand
– Holiday and tourism letting
– Retirees.
Country and rural property markets can still grow, but typically will be at a slower pace.
However, where country properties really can come out on top is on price factors, which can make a huge difference:
– Rural properties have a lower entry price point means lower mortgages, potentially higher yields, and better cash flow.
So, how to choose?
Ultimately, what is the “better choice” all comes down to your particular strategy.
If you have a lower budget, set an objective, and prioritise cashflow- then buying in the country may be more suitable.
If your strategy has a focus on access to amenities, long term capital growth, and can afford to pay a premium for a well located property, then a coastal property might be the right choice for you.
There is no right or wrong, but when making the decision, both the opportunities and risks should be analysed for both scenarios. The key is to align your property purchase with your financial goals, risk profile, and lifestyle needs.
