Top Australian Suburbs For Property Investors In 2016

By: Rakesh Gupta4 comments

Where to buy an investment property, is a complex decision. The factors to consider are different from those that govern buying a home to live in. Your decision has to be a logical one based on facts rather than emotions. This can often cloud a property investor’s judgement especially if they are new to the game.

While deciding where to buy your investment property, one has to consider the amenities around the location. Ask yourself, “Are there schools, hospitals, public transport, or shopping complexes within reach?”

The proximity of the property to such amenities and the central business district ensures that a property generates capital gain and also makes it attractive for potential tenants. So, let’s find out some top suburbs of Australia that property investors should keep a watch on in 2016.

Suburbs in Sydney

The previous year showed double digit year-on-year growth in the Sydney market. The median house prices in Sydney were 30% higher than it was two years ago.

So the question is, “In the midst of the runaway property market and with speculations of a property bubble in Sydney, is there still room for property investors to look for suburbs with scope of growth?”

Fortunately, the Sydney property market is showing signs of shifting in favour of buyers instead of sellers. In the wake of the changes, let’s take a look at the suburbs of Sydney that will prove healthy for investors.

One part of Sydney, with growth potential is the City of Liverpool Local Government Area (LGA). Liverpool LGA includes the suburbs of Liverpool, Chipping Norton, Casula, and Moorebank.

The Western Sydney Airport at Badgerys Creek, the largest infrastructure project in the history of Australia is due to come up in Liverpool LGA. The airport has been predicted to be functional by mid 2020s and a rail corridor and station for the airport are also on the cards.

Another part of Sydney to keep an eye on is the inner-west area. The suburb of Tempe is a good option for first-time buyers. Homeowners in Tempe enjoy great advantages like proximity to the airport, the city of Newtown and Sydney University.

It has a good mix of owner occupiers and a high demand for rentals. Dulwich hill is another inner-west suburb that sits pretty within the 10 km radius of the Sydney CBD. The locals enjoy a brilliant network of public transport along with the advantages of being close to Marrickville and Cooks River.

Going east, Kingsford is set to benefit from the services of the light rail. It also appeals to residents and students of UNSW. Kingsford offers affordable prices with neighbours like Randwick and Coogee. Next in the list is Potts Point for investors who are looking to invest in inner-city apartments.

The suburb of Westmead holds great potential for capital growth with two major investment projects on its way – the redevelopment of the Westmead Hospital and  rail corridor from Westmead through Parramatta and Sydney Olympic Park to Strathfield.

Suburbs in Melbourne

If you are looking forward to investing in Melbourne, now is the right time to do so. Experts predict that the Melbourne property market is set to outperform that of Sydney with a rise between 8% and 13% in housing prices.

If you are looking for good annual growth, Box Hill South in inner-east is one place to pay attention to. Situated in under 20 kms from the CBD, the suburb sits adjacent to Deakin, Presbyterian Ladies’ College and two tram lines. It suits  well for young families and residents enjoy amenities like healthcare facilities, golf course and parks and reserves. Two other suburbs for a good annual growth are Balwyn North and Mount Waverley.

If a good rental yield is on your mind, then you should consider the suburbs of Melton South, Wallan and Carrum Downs. Melton South enjoys a low median price of $253,000. Close to Victoria University Campus, Melton South is family-friendly and has other amenities like a train station. Wallan and Carrum Downs also boast of low median prices. Wallan gives a small town feel and suits families, kids and retirees while Carrum Downs has good amenities apart from being  close to the beach.

Suburbs in Brisbane

Though Brisbane could not live up to the expectations of a solid year in terms of property growth in 2015, it is set to show improvements in 2016 with growth predicted to be around three to four percent. Outer suburbs of Brisbane with low median prices hold good potential for investors.

Redcliffe Peninsula located north-northeast of Brisbane encompasses the suburbs of Redcliffe, Clontarf and Woody Point. Work finally resumed on the long-delayed Moreton Bay Rail Link, a 12.5km long dual-track heavy gauge rail link between Petrie and Kippa-Ring on the Redcliffe peninsula, making it look good for investors. Current low medians of around $400,000 are attracting investors in Redcliffe.

Experts are predicting a good year for Brisbane in 2016 because of a strong last quarter in 2015 and low interest rates. Northern suburbs of  Everton Park, Taigum and Deception Bay should also be on the investor’s radar. Low house prices in Loganholme and Eagleby have made them potential hotspots for investment.

Shifting focus to inner suburbs,  Wooloowin, Hamilton and Ascot are on the rise supported by low interest rates and new developments.

The Logan LGA also has great potential because of infrastructural growth and transport facilities that point clearly towards capital growth. It includes the suburbs of Logan Central, Loganlea and Yarrabilba.

Suburbs in Perth

Perth witnessed a downfall in property prices in 2015 with property prices falling more than 4% year-on-year. Perth is highly biased towards property buyers and investors at the moment with competitive prices. The top suburbs in Perth for investors are Armadale, Balcatta, Subiaco and Victoria Park.

Armadale has been coming to light because of favorable returns to investors. The residents of Armadale enjoy good transportation, quality amenities and infrastructural upgrades by the government.

Balcatta is located just 12 kms from the Perth CBD and has an affordable median price of $540,000 which makes it a popular choice. For those looking for a superior lifestyle option, Subiaco is a sought after destination. Close to the city, Subiaco is headed for redevelopments like China Green and old Ace Cinema site and with the upcoming Perth Children’s Hospital, the suburb looks promising.

Victoria Park is just 4 kms away from the Perth CBD and is attracting investors with tree-lined streets and the bustling cafes on the Albany Highway. It also is an excellent choice for investing in rentals with the Curtin University and TAFE campuses just round the corner.

Conclusion

Investing in property is still considered as one of the most effective ways to build your wealth over other investment options. But it requires a solid investment strategy in place which is based on thorough planning and  research.

Choosing a location is a crucial aspect of your strategy and make sure it is not an ambiguous decision. Look for the best place that matches your investment goals and take expert advice if necessary.

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