Investing on a budget
The age old debate in property is where the investment hotspots are. Many firmly believe that prime inner city suburbs are the best and most profitable places to invest in.
And although there's no doubt that inner city suburbs are popular and generally offer sound investment opportunities, their popularity pushes house prices up and in turn makes investment more expensive and unattainable for our clients.
The good news is that there is research to suggest that there are more affordable - and profitable - areas to consider for property investment. In many cases, high long-term growth in our capital cities can be found in the more affordable suburbs.
Across Australia we're seeing many modest locations heading on a strong growth path. In Queensland, Hotspotting.com.au tipped Logan City as an area of huge potential and said: "The local council sees it as a strategic "city between two cities" because Logan bridges the gap between Brisbane City and Gold Coast City. It's a municipality of 60 mostly affordable suburbs and collectively they are a nice fit for the core formula of: affordability plus infrastructure plus jobs equals price growth."
In Sydney, Campbelltown and Camden are two suburbs that are trending north. Together, the two suburbs currently form the strongest precinct in metropolitan Sydney. Penrith, Blacktown and Liverpool are also Sydney suburbs that offer good long-term growth.
In Melbourne there are several affordable suburbs seeing growth momentum. These include Epping, Casey and Brimbank.
Salisbury in Adelaide is tipped as a standout suburb with rising activity. In Perth there are some smaller markets that have been touted as being on good growth trajectories such as Wanneroo, Armadale and Rockingham.
And whilst many of our top-end suburbs continue to do well across our capital cities, the increase of affordable areas is good news for our clients who want to invest but can't afford to buy in the inner city suburbs.
Our clients who are considering investment could benefit from learning about these more affordable suburbs and in turn, could attain a more affordable home loan.