Planning ahead: The best places to invest in a home to retire to

Thinking about the best locations for retirement, but not quite ready to move yet?

Regional and coastal Australia have never before looked so good, with improved infrastructure, more health and education facilities and remote working for that consultancy work that will still, inevitably, come up.

And in the meantime, before you make the shift, excellent rents, so there are good returns on any investment.

“I think COVID’s legacy is that we’ve never before been so open to moving away from the cities,” says Jill Weeks, the author of Where to Retire in Australia and founder of the retirement planning website where2now.net.

“It’s all about that ‘L’ word – lifestyle – and finding places with all the amenities and also a great sense of community.

Rents are so high now in many of those places too, and you can see that right around Australia now.”

Her top pick for NSW is Bowral in the Southern Highlands, for its proximity to Sydney, rail links to Sydney, Melbourne and Canberra, medical facilities and cultural events, and the fact it still retains its country charm.

In Victoria, she favours Echuca on the Murray River for its weather, medical facilities, restaurants and security.

In Queensland, the Sunshine Coast and Toowoomba in the Darling Downs take out top honours, while Victor Harbor on the Fleurieu Peninsula is her pick for South Australia, the Margaret River region for Western Australia, and, in Tasmania, Hillwood near Launceston because it’s close to the city but is quiet, with scenic views and excellent restaurants.

“Bowral’s always been a great place to retire to, with people moving from Sydney, the ACT and even up from Tasmania, and we’re also now getting a lot of younger families moving here so it is more mixed,” says Kate McCullagh, a partner at Di Jones Southern Highlands. 

“If people aren’t ready to move here yet, rental returns are very good as there’s a huge demand for long-term rentals and a very low vacancy rate.”   

The average median weekly house rent in Bowral, on the latest Domain Group figures, is $590, up 7.3 per cent on the last year alone, and offering a 5.06 per cent yield.

Over the border, in Echuca, the yield is even higher, at 5.45 per cent with rent at $370, up 5.7 per cent on the year. 

“Echuca is the most fantastic place to come and live,” says Rowena Ash of Charles L. King First National Echuca.

“We’ve got the river, beautiful weather, 15 restaurants, nine pubs and four clubs, and great golfing and bowling. On top of all that, it’s only a two-and-a-half-hour drive to Melbourne.”

Noosa Heads brings a lower rental yield, at 3.91 per cent, because of the high cost of property, but Toowoomba has a yield of 5.05 per cent.

Victor Harbour’s yield is 5.23 per cent, Margaret River’s is 5.08 per cent, and the northern part of Launceston is 4.18 per cent. 

“Toowoomba is always worth looking at,” Weeks says.

“And with three lakes and their surrounds, there’s so much bushwalking, fishing, water-based activities and camping, so there’s always plenty to do for the visiting grandkids!”