Westpac is jacking up all of its variable home loan interest rates by 0.2 percentage points, a move it has blamed on rules forcing banks to hold larger loss-absorbing capital buffers.

The country's second biggest bank on Wednesday announced the change, which will increase headline owner-occupier rates to 5.68 per cent, and investor rates to 5.95 per cent.

(Register now selecting Finance / Mortgage broker, and see how any of our panel of mortgage brokers can help you.)

RBA deputy governor, Philip Lowe’s comments, which played down the likelihood of a recession, came as a key business survey showed business confidence bounced in the wake of Malcolm Turnbull’s ascent to the prime ministership last month.

“People say business and consumer confidence are weak, but that’s just not correct: they are around average, and some surveys are above average,” Mr Lowe said yesterday, while cautioning property investors against continued house price growth in Sydney and Melbourne.

PalazzoAn uncomplicated existence living in pristine coastal surrounds, is a dream held by many of us. You've worked hard in the city for years, watching your children grow up. Many of us now and in the future, will always be looking to escape the rat race.

There are holiday homes that cost just a fraction of the median Sydney house price, and with the sun and surf nearby, plenty of savvy investors and buyers are jumping at the chance of a bargain buy. They are not all just holiday homes either, some beach side areas have a highly competitive permanent rental market, with extremely low rental vacancy rates.

While an average house in suburban Sydney now costs over $1,000,616, the dream of living surf-side can set buyers back millions.

However up on the northern NSW coast there are several waterfront locations, like popular fishing and surf destination Evans Head, where rental vacancy runs at marginally over 1% and a brand new house on a large parcel of land close to the beach can still be snapped up for considerably less than

Demand for residential property is set to continue to rise off the back of population growth, economic growth and infrastructure investment, according to a report released by Urbis on the future of the Toowoomba property market.

The Toowoomba region has recorded ten straight years of economic growth. Rental growth has risen by 4.7 percent over the past decade, and current rental yield is 5.2 percent, the report states. 3,218 new residents are expected to make Toowoomba their home each year between 2016 and 2036, boosting the population by more than 48,000.

Toowoomba also has $2.5 billion worth of current and future infrastructure projects, including the Toowoomba Second Range Crossing, Warrego Highway Upgrade, Brisbane West Wellcamp Airport construction and the new Gardentown Shopping Centre. "The Urbis report highlights the strength of Toowoomba’s broad based economy which is underpinned by significant committed capital expenditure," said Toowoomba Regional Council Mayor Paul Antonio.

investment lifestyle seachange investorgroup

While value is scarce for investors in the Sydney and Melbourne property markets, there is plenty in "sea change" locales, experts say. 

Corelogic RP Data's head of research Tim Lawless believes Baby boomers are back on track with their seachange plans, and are seeking lifestyle homes. 

"Investors looking for value should be looking for areas where the lifestyle buyers are going ... " he said. 

See more at Australia Financial Review

Rather than buy to occupy, savvy property investors look to invest in Lifestyle suburbs that generate high yield rental income to boost incomes and pay off an often considerably smaller mortgage loan.

Buy more, for less. 

- See what we've been talking to our members about here VIP Seachange House and Land