Investment in real estate is all about location; however, knowing which state or city to invest in is not necessarily enough. Two neighbourhoods that are just 10 minutes apart may have properties that come at drastically different prices. This is why you need to learn a thing or two about the area, take a cautious approach and even consult some local experts on the topic. All in all, here’s what you need to know before you decide to commit your resources and make this investment.

Hobart, Tasmania

The first Australian location that we would suggest is Hobart, the capital of Tasmania, or more specifically, Risdon Vale, which is one of its most popular outer suburbs. The people are pleasant and there are all the facilities you might need. Still, nothing is perfect. The reason why some people don’t see this as a good idea is due to the fact that it’s also home to Tasmania’s only maximum security prison. These things are sometimes problematic, and areas with heavy traffic or similar buildings affect the resale value of the home. Nonetheless, there’s an upside to it, as well. First of all, this also means that the cost of the initial investment is lower, too.  Moreover, this is no longer as big of a factor as it was in the past.

Adelaide, South Australia

The next idea worth considering is getting yourself a property in Adelaide and the reasons behind this are numerous. Those interested in getting a rental property will be happy to learn that this is one of the cities in Australia with the lowest vacancy rates. Also, it’s the second most affordable city (right after Hobart that we’ve just finished discussing), meaning that you can become a homeowner with a relatively small investment. The population of the city is growing (which could have already been deduced from the low vacancy rate). In addition, he city is renowned for the high quality of education (great universities), which might just turn it into a significant business hub in the nearest future. In other words, now is the time for you to invest.

Sunshine Coast, Queensland

The next great place for you to consider investing in is the Sunshine Coast, the metropolitan area on the coastline of Queensland, not so far from the state capital Brisbane. When doing your research of where to invest, you can’t just look at graphs regarding the value of the real estate in the area. You can also check whose advertising in Sunshine Coast and see if there are some interesting prospects there. Seeing what is available on the market is a great option to check out what your next investment might be.

Sydney, NSW

No list of real estate property in Australia would ever be complete without at least one Sydney location. Sure, the prices here might be a bit high and the competitiveness of local real estate companies is somewhat greater; nonetheless, there are some suburbs that are more than worth considering. As for the suburbs that you should go for, keep in mind that the cost of the rent (as well as the cost of the property), depends on how affordable the suburb is.

Now, it all comes down to the reason why you’re buying. You want the rent to be able to return at least 1 per cent of the total value of the property each month, but how much are you willing to invest? For instance, Lavington, Kooringal and Albury are three most affordable NSW suburbs, whereas North Bondi, Sydney and Darling Point are by far the most expensive ones.

Melbourne, Victoria

The market of Victoria is strengthening by the hour, which means that the trend of homeownership is bound to pick up with this trend of growth, sooner or later. Each year, about 1,500 new households are being formed as a result of the above-mentioned trend. The trend of foreign investment is also on the rise, yet, the local interest in real estate investments isn’t diminishing either. As the rental market is tightening, the spirit of competition is bound to pick up the pace.

Sure, some may argue that the ideal time to invest in Melbourne property has passed long since, but this greatly depends on your standpoint. Namely, there are still some areas that are currently under expansion, which means that there may yet be a more than ample opportunity. Lastly, the demand surpasses the supply by about 50 per cent. There’s a demand for about 1,500 dwellings in Melbourne each week, whereas only about 1,000 are being constructed in this period. This has a major effect on property prices.

The last thing worth keeping in mind is the fact that, at the moment, there’s a growing trend of foreign investors buying properties in Australia (especially investors from China). However, foreign investors aren’t allowed to buy the existing homes but only to purchase off-the-plan apartments and vacant land, on which they can later erect their own real estate. As a foreign citizen, you first need a FIRB approval. All of this must be taken into consideration before you decide to buy.

 

Published by Emma Lawson