Are you looking to invest in property this year? If you’re new to the investing game, welcome! It is time to talk about where the top property locations in Australia currently are.
Deciding where to invest will depend on what the client’s individual goals are, how much they are willing to spend on their property, and what types of properties they already have in their portfolios.
There are three ways to spot a great property investment:
1. Stick with Capital Cities
Once you have invested in a property, your next objective is typically to seek someone to rent out your place; with low vacancy rates in capital cities, they are the ideal choice for investment.
Since capital cities tend to have more infrastructure, employment opportunities and a higher population; these factors typically increase rental demand, the prime environment for a property investor.
2. Diversification is Key
Ever heard of the saying, don’t put all your eggs in one basket? The same principle applies when purchasing properties. Diversifying your portfolio allows for a stable and consistent income to come in, as different areas experience ups and downs at different times.
Property investment strategist, Leonie Fitzgerald, says, “Markets grow at different times so if you had a property in each of the major capital cities you should have good capital growth each year overall.”
3. Follow the Cycles
The way to get ahead of the game in investing is by beating the crowds. Now, you may be asking what that means—allow us to explain.
As different areas gentrify, they are placed on the list of investment “hotspots”, drawing more attention from the public. Good investors learn this news before it becomes common knowledge.
You want to invest in a rising property market, preferably in the early stages.
For example, on Australia’s east coast, Sydney and Melbourne have both had their booms, so considering Brisbane as an investment opportunity is a great option!
Where should I be investing in 2018?
If you’re an entry level investor, starting out with Sydney’s west would probably be a good idea. Suburbs like Parramatta, Liverpool and Blacktown are quickly becoming independent satellite economies.
Properties in the aforementioned locations are relatively affordable (especially compared to Sydney suburbs close to the CBD), and also offer an increasingly attractive lifestyle after the government’s efforts to improve local infrastructure and amenities.
With the construction of the new airport at Badgerys Creek, Liverpool’s local economy is likely to receive a boost, whereas Macquarie Park has greatly improved transportation links; including better train and roads to the CBD.
If you’re looking for long term growth, suburbs in Sydney’s east will be positively affected by the completion of the light rail (connecting the city with the University of NSW). Such suburbs affected by this new infrastructure include Surry Hills, Randwick, Kensington and Kingsford, so consider looking around here.
Another area on the rise is the inner west of Sydney, with families and first-time buyers moving to Petersham, Stanmore, Croydon Park and Camperdown, as they benefit from the improved local transport options.
A major factor to consider when looking for an “in-demand location” is to take into consideration what renters are looking for, because other areas in play are suburbs that are highly connected by public transport.
Renters are attracted to suburbs with easy access to public transport (i.e. a train line or bus route) and taking it a step further, young professionals are looking at areas within a few stops from the CBD. Such suburbs include: Wolli Creek, Green Square, Ashfield, Erskineville and Marrickville.
If you have the capital, long time Sydney favourites within the eastern suburbs are always a good buy (if you are able to successfully enter the market). These suburbs include: Bondi, Coogee, Tamarama, Bronte, Paddington and Bellevue Hill.
If the housing market is too expensive for your investing goals you may want to start looking at regional alternatives. Commuter towns and regional areas of NSW are a lot more affordable than Sydney, including suburbs like: Newcastle, Wollongong and the Central Coast.
Newcastle has become a desirable investment choice due to its new rebranding and investment in local infrastructure and amenities.