When you’re taking the plunge into the Australian property market as a first time investor it can be tricky to know where to begin, how much to spend and what areas to consider.
Here are some tips to guide you in sussing out the top up and coming neighbourhoods that have good potential for investment:
- When deciding on where to invest you need to make a short list of suburbs to consider and then go out and thoroughly research each one.
- Experts recommend choosing areas with populations of around 10,000 people plus, due to the added diversity this brings to industry (yourmortgage).
- Also look at lifestyle attractions and factors such as the suburb’s proximity to the city, coastline or parks, freeway access, number of schools and existing infrastructure.
- Once you have a short list, check if these towns are growing in terms of population, median house prices, rental demand, rental yields, infrastructure plans and industry.
- Seek out areas with diversified burgeoning economies. Find out what major industries support the area and who the major employer is. See if the major employer is growing fast or it they are losing momentum and laying off staff.
- Check out government websites for plans for new infrastructure to improve access to the town. Also look to see if there is money being invested in the area’s public transport, amenities, roads and services (i.e. new hospitals, schools, shopping centres, universities, train stations or airports).
Here’s some data from Your Investment Property’s suburb reports to help kick start your research into burgeoning areas suitable for your first investment.
Top three up & coming suburbs by state
Rankings are based on stats collated from CoreLogic RP data and are listed by median house price (MHP), average annual capital growth rate (CGR) and population of each suburb.
Stats: $365,000 MHP, 5.88% CGR and 6,750 people.
Drawcards: Medical facilities, arts and culture, transport, eating out and parks and rec.
4 Phyllis Crescent, Castlemaine, VIC.
Stats: $378,000 MHP, 5.01% CGR and 32,756 people.
Drawcards: Family-friendly, parks and rec, 30 km from CBD, shopping, childcare and schools.
Stats: $389,500 MHP, 3.10% CGR and 21,690 people.
Drawcards: Family-friendly, lack of traffic, proximity to the bay, 28 km from CBD, cost of living, safety, parks and rec.
Stats: $535,000 MHP, 5.58% CGR and 11,813 people.
Drawcards: Shopping, sport facilities, culture and the arts, national park, gym and fitness and cost of living.
Stats: $495,000 MHP, 5.57% CGR and 10,400 people.
Drawcards: Family-friendly, eating out, sport, medical facilities, schools, parks and rec.
Stats: $447,500 MHP, 5.44% CGR and 1,806 people.
Drawcards: Proximity to Newcastle CBD, schools, public transport, parks and rec.
Stats: $310,000 MHP, 8.42% CGR and 6,905 people.
Drawcards: Safety, lack of traffic, gym and fitness.
5 Spencer Street, Roma, QLD.
Stats: $438,850 MHP, 5.65% CGR and 5,675 people.
Drawcards: Parks and rec, peace and quiet, lack of traffic and family-friendly.
Stats: $332,500 MHP, 5.6% CGR and 5,224 people.
Drawcards: Eating out, shopping and public transport.
Stats: $560,000 MHP, 5.28% CGR and 13,008 people.
Drawcards: Family-friendly, pretty leafy streets, public transport, schools, eating out and 5 km from CBD.
1/72 Alabama Avenue, Prospect, SA.
2. West Croydon
Stats: $475,500 MHP, 5.25% CGR and 4,061 people.
Drawcards: Parks and rec, medical facilities, shopping, eating out, proximity to CBD and family-friendly.
3. Mawson Lakes
Stats: $460,000 MHP, 2.96% CGR and 10,871 people.
Drawcards: Public transport, parks and rec, gym and fitness, proximity to CBD, schools and university.
Stats: $547,500 MHP, 10.30% CGR and 4,917 people.
Drawcards: Cost of living, lack of traffic, parks and rec, proximity to coast and lakes.
8 Williams Road, Coolbellup, WA.
Stats: $411,000 MHP, 8.97% CGR and 5,109 people.
Drawcards: Gym and fitness, schools, parks and rec, and public transport.
Stats: $446,000 MHP, 7.70% CGR and 14,159 people.
Drawcards: On the coast, beaches, water sports, parks and rec, eating out, gym and fitness.
1. West Hobart
Stats: $475,000 MHP, 4.46% CGR and 5,800 people.
Drawcards: Schools, family-friendly, safety, public transport, proximity to CBD and bush.
245 Bathurst Street, West Hobart, TAS.
2. South Hobart
Stats: $426,750 MHP, 4,21% CGR and 5,077 people.
Drawcards: Parks and rec, schools, water and city views, and walking tracks.
Stats: $248,500 MHP, 3.07% CGR and 4,447 people.
Drawcards: Parks and rec, family-friendly, public transport and proximity to CBD.
We hope that these facts and figures help narrow down your search for your next investment property. If you have another area in mind why not start your research on our Suburb Reviews page.
Are there any up and coming neighbourhoods you have your eye on? Please share them in our comments section below.
Happy house hunting!