The six signs of Australia’s best investment suburbs
You’re thinking about buying an investment property – fantastic! So, where are the best places in Australia to invest these days? As you do your research and start looking around at properties, keep in mind that ultimately, you’re looking for a win-win situation: You want your new property to be attractive both to you, delivering a strong rental yield, and to your renters, so you can keep it continuously tenanted (which, of course, is also another win for you).
With these considerations in mind, Australia’s best investment suburbs typically boast a handful of key characteristics.
For individual investors, property appeal must begin with budget. Do the properties you have your eye on fit within yours? Do you have a good grasp of what exactly your budget is? After all, you definitely won’t be a winner if you’re living beyond your means. Figure out your finances, and look at and compare only areas that fall within your price range.
Solid population growth
As populations grow, that means demand for homes to house this increasing number of people grows, too. This equals good news for investors. Both current population data and forecasts for future growth in Australian metro and regional areas are readily available. As you study this information, for the best return on investment, you want to look at growth areas with higher predicted growth rates than the state or territory’s average.
Access to good infrastructure
As communities grow, good infrastructure is critical to this growth. From internet connectivity to roads and transport, such as buses, rail, and airports, infrastructure supports industry and therefore employees – your potential tenants. What’s more, solid infrastructure has become essential to the high standard of living that residents (again, your tenants) have reasonably come to expect. For example, tenants will want to know that they can commute to work in an acceptable amount of time and have convenient access to other services and facilities.
Indeed, just as good infrastructure and economic growth are important, so are the quality-of-life factors, amenities, and services that draw residents to an area. These include:
• a desirable climate
• population make-up (does the area draw a demographic similar to that of your sought-after tenants, whether that’s young singles, families, or retirees?)
• community vibe (for example, is the suburb known to be quiet and peaceful or more lively and vibrant?)
• proximity to schools, churches, healthcare facilities, and again, public transport
• access to shopping, gyms, entertainment, parks, and more.
When an area ticks these cultural and lifestyle boxes, it’s a plus for investors and renters alike.
Low unemployment rates translate to companies that need employees (there’s that population growth again) and employees that need housing. Conversely, high unemployment in an area can mean high vacancy rates – just what investors don’t want. This is another reason to look in growth areas in which a lot of infrastructure and development work is happening. This work equates not only to jobs but also to the broad residential appeal that we’ve mentioned above.
A diverse employment base
However, it’s important to consider not just the employment numbers but also the variety of the region’s employment opportunities. What are the industries and companies that drive the area’s workforce? If one industry were to fail in the areas you’re looking, what would that mean for the local job scene and economy – and for your investment? Choose suburbs with a healthy mix of commerce.
Researching these factors will get you off and running towards your ideal investment property. Though you can tackle some of it yourself, you might want to consider calling in the pros. They actively have their finger on the pulse of the Australian property market and can more specifically talk you through what makes areas attractive for investors. They have the inside track on where you’re most likely to see strong rental returns, solid capital growth, and low vacancy rates.
Allied Investment Group actively monitors 40 key growth regions throughout mainland Australia. If you’re thinking about buying an investment property, we can help. Call us today on 1300 886 149 or request a Free Consult.