For first time investors, getting a foothold onto the property ladder can be the most challenging step. While we all would like an investment property in the bustling CBDs Sydney, Melbourne or Brisbane, the reality is that it's not a practical solution for many.
It's hardly surprising. The Australian Bureau of Statistics has released information on the strong growth of property price indexes across the capital cities, and all (bar Perth and Darwin) have shown strong growth, with Sydney, Melbourne and Canberra leading the pack this quarter, continuing to put these markets further out of reach.
On the other hand, CoreLogic has recently released a report on the most affordable suburbs in Australia, and the results are much more diverse than you might think.
Affordability is everywhere
According to the report, the diversity of suburbs has been the stand-out thing to take home. While Tasmania is still unsurprisingly the the most affordable territory, with the top three sitting under $100,000, the number of suburbs in Victoria featured on the list is encouraging, with five suburbs making the list. Queensland and Western Australia also feature, so there's plenty of places to shop around for a good deal.
Tim Lawless, Research Director of CoreLogic, spots a common trend:
"Many of the most affordable areas are located in coastal locations, which are within comfortable driving distances from the capital cities along the eastern seaboard of Australia, such as Queensland's Gold Coast," he said.
Compared with the most affordable capital city, Adelaide with a median value around $450,000 to the least, Sydney sitting at just under a million – buying property in more affordable areas can be a smart investment.
"Many of the most affordable areas are located in coastal locations, which are within comfortable driving distances from the capital cities."
Why should you invest in more affordable areas?
So what's the advantage of investing outside of central cities? The most obvious answer is cost. Houses in the most affordable areas are the same value as the deposits for houses in the pricier capitals. Because of this, more and more people are getting priced out of these markets, resulting in them turning to outer regions to snap up more reasonably priced properties. By getting in quick and beating them to the punch, you'll reap the benefits of the ensuing capital gains that will follow.
Whether you're looking to invest in central Sydney or Queenstown Tasmania, we can put together a strategy to meet your unique portfolio and find the right property for you. Start up a conversation and get in touch with REIN group today.