If you've been doing your research as to where you should consider buying your next investment property around Australia and you've come away a little confused, you're not alone. According to top industry experts, Australia's property market has slowed considerably over the past twelve month especially in the recently booming cities of Sydney and Melbourne.
The good news is however, that the market is not likely to collapse in the near future but we will continue to see a slight slow down in growth in the major capital cities like Melbourne and Sydney. And for those people who have invested in Brisbane, you're likely to see a slight growth in prices over the next 12 months or so which is certainly good news.
Experts are also predicting a growth in Adelaide and Hobart where demand is increasing due to better employment prospects and continuing infrastructure growth.
Here is just a small sample of possible growth suburbs in the major capital cities around Australia:
For property investors, the eastern suburbs of Sydney still offer excellent growth prospects while first home buyers seem to be moving more toward the western suburbs like Blacktown, Mt Druitt, Kellyville and Liverpool.
Melbourne's property investors are still finding excellent growth in the bayside suburbs and the inner south eastern areas. The eastern suburbs also continue to be good growth areas due to the already present infrastructure of freeways, schools and shopping centres.
Areas outside of Melbourne are also predicted to grow with the construction of the Regional Rail Link. This has meant that areas such as Geelong, Ballarat and Bendigo are going to see a continual growth in property demand as the new link will make commuting to the city easy for people living in these areas.
If you're wanting to invest in an apartment, then you should consider the greater Adelaide area where growth is expected to happen slowly over the coming months. Recent reports indicate that suburbs such as Redwood Park, Modbury Heights, Melrose Park, Marino and Morphettville are definitely worth investigating.
There appears to be a strong demand for properties in Hobart due to the increase in employment in tourism and education. In fact, West Hobart was ranked as the third most sought after suburb around Australia in 2017.
Perth property growth has certainly almost hit bottom and is not predicted to improve much for a few years to come. It might be wise to stay away from investing in property here for the time being.
Prices in the Darwin property market are still going backwards however this could be a city to keep an eye on in the coming years as demand slowly starts to pick up.
Although property prices are expected to continue a steady growth in our capital, excessive land tax may be a disincentive for anyone looking to purchase an investment property here.
So How Can You Choose A Good Growth Suburb For An Investment Property?
When looking for a good growth suburb where you could consider buying an investment property, there are a number of factors which you should look at. These include:
Source: By I, Jason Antony, CC BY 2.5, https://commons.wikimedia.org/...
- Recent Property Sales Data
You can find property sales reports online which will show you the price growth in certain areas using previous years as a comparison.
You can also use online tools like the QuickStats Tool1 from the Australian Bureau of Statistics to find out more about certain suburbs and areas.
One thing you should look out for is the renter to owner occupier ratio. If an area has more owner occupiers than you'll have less landlords to compete with for your rental property. Of course, you need to ensure that there is definitely a demand for rental properties in the area.
- Consider The Second Most Popular Suburb Rather Than The Most Popular
Quite often you'll find that the most popular suburb has already hit its peak in property prices, so going for the second choice means you could be buying into a suburb which still has major growth potential.
- Always Look At The Supply And Demand In Any Suburb
If a suburb has had lots of recent development such as new housing estates or townhouse developments, you may find that the supply is greater than the current demand. Therefore you should always look for suburbs where the demand is much greater than the supply.
Consider suburbs where rental properties are snapped up really quickly as these are where the greatest demand is.
- Definitely Have A Look At Areas Outside Of The Ones That You Are Familiar With
If you broaden your search to areas that you're not that familiar with, you might find some real gems that you may have never found otherwise.
- Keep An Eye On Planned Infrastructure
As a property investor you would certainly be aware that the best investment properties are those that are close to public transport, schools and shopping centres. Therefore doing some investigation into future planned infrastructure building may be wise. These areas may well be ones to look at for future property growth.
Source: By Wpcpey - Own work, CC BY-SA 4.0, https://commons.wikimedia.org/...
As you can see, finding a suitable investment property in 2018 is not going to be as difficult as you may think. Have a look at the suburbs that we mentioned in our capital city roundup but continue to do your own research to find up and coming suburbs which may yet have peaked but are on the way up.
Do your homework by reading everything that you can, speak to industry experts and look out for other growth areas such as major infrastructure improvements and even employment growth.
By doing your research well and with an open mind, you'll be sure to find your ideal investment property in the coming year.