Investor hot spots
Purchasing an investment property is a popular way for Australians to build wealth and equity. Whether you buy new, off the plan or an existing dwelling, purchasing in the right area can make a big difference to your rental returns. We asked Ray White CEOs for their hot tips on the up-and-coming areas to focus on. Or you can always just follow your nose as Chief Executive for Growth, Mark McLeod suggests. “The best place to invest is wherever coffee precincts are being developed. Think about suburbs that have great coffee culture – they become fashionable and in vogue.”
Kristy Bartlett, CEO Ray White Victoria, recommends Footscray as a great place for investment. Only 5km from the city, multicultural Footscray offers great rental return. The area’s predominant age demographic of 25-34 year-olds is a reflection of nearby Victoria University and the great hub of young professionals that’s built up around it. 54% of Footscray’s residents rent, so there’s a strong demand for rental properties. The median house price is $650,000 and with 69% of properties selling for under $600,000 in the last year, it’s an affordable option.
Residential investment is a long-term strategy, says Ray White Queensland CEO, Peter Camphin. Look in areas close to the city. Suburbs like Nundah, Wooloowin, Moorooka and Salisbury are on a railway line, so they’re accessible and affordable. As the population grows, so does the value. It’s also worth checking the outer-west suburbs like Ipswich and Bundamba as both have good road and train access. They’re very affordable at the moment with strong potential for growth.
New South Wales
A strong start to the year means there’s now an understock of rental properties. This creates more competition among tenants and pushes up prices. James Price, Chief Auctioneer Ray White NSW, suggests looking at the St George area which has seen an increase in available rental properties this year. Kicking off 2014 with a bang is Kogarah, with over 40% rentals. Both Kogarah and neighbouring Rockdale are close to the city and the airport, with an easy train commute to both. The nearby hospitals are also a big drawcard to the area for staff wanting to live close to their workplace.
In a great position only 8km from the city and huge amounts of money being invested into the area, now’s a good time to get in early in Kilburn and Blair Athol. Ray White SA CEO, Nick George believes these suburbs are currently undervalued and foresees them as having great potential for rental value ten years down the track. A new shopping centre has just opened, a Costco is in the works and many infrastructure upgrades are planned, turning the suburbs into a thriving hub for fashionable living.