Top property hotspots for investment in Australia -by Justine Williams
Every smart investor is on the lookout for the next big thing. Wherever you put your hard-earned dollars – whether it’s investing or trading in Australia or overseas – the best opportunities present the chance to improve your financial situation drastically.
When it comes to property, the strength of your investment relies on its location. We probably all know what a nice house looks like – but if it's built in a bad part of town then it’s worth less than if it’s in a property hotspot.
It pays, therefore, to know where these lucrative locations are in order to get the most from an investment in property. Here are the top options to consider…
The established markets…
The traditional top performers are Sydney and Melbourne and these are a fairly safe bet for any property investor, especially if you’re looking for luxury properties.
Prices might have cooled slightly, but both cities enjoyed above percent growth in 2016 and have a strong business and tourist economy that should maintain their status at the top of the tree.
North Curl Curl, Paddington, Mosman, Manly and Kensington are the places to shop in Sydney, while Thomastown, Brunswick East, West Footscray, Seaford and Highett are on the up in Melbourne.
The up and coming city…
While Sydney and Melbourne are well-established, the prices there are starting from a fairly high base. If you’re looking for a boom, look no further than Hobart.
Simon Pressley, head of research at Propertyology, said: “Hobart is the only location in Australia which has the combination of an affordable entry price, an economy which is already strong, and still improving, hardly any impact on investor’s annual cash flow, and a tight supply pipeline for as far as the eye can see.”
If you want to invest in the Tasmanian capital the inner-city suburb of Moonah is just a stone’s throw from the CBD and is enjoying good rental yields and price growth.
Good value for your dollars…
Hobart is on the up and great value for money – but so too is the Northern Territory capital of Darwin. The typical rental yields are almost five per cent in Darwin, making it a great choice for would-be landlords.
Darwin’s economy is set to benefit from developments in the oil and gas industry, mining exports and upgrades to the airport and rail network – all good signs that growth can be expected in the next five years.
Typically, the best yields will be found in the CBD. However, Nightcliff, Rapid Creek and Brinkin are also showing strong potential for growth.
The best rural location…
Of course, it’s not just about the big cities. There’s also growth to be had in investing in property in rural Australia too.
A report from realestate.com.au looked at the towns and suburbs located at least 100kms from a capital city that are performing strong.
It highlighted the fact that places such as Barandunda and Huntly in Victoria have benefited from new housing developments – with retirement properties attracting people looking to downsize or retire.
Thank you to Justine Williams