Property market prices may still be rising but there remains a number of affordable opportunities for investors looking for upside capital growth potential.
According to Hotspotting’s Top Cheapies with Prospects research, there are five city and five regional areas where it is still possible to invest in property priced between $300,000 and $600,000.
Hotspotting Director, Terry Ryder, said just because a location had been given the moniker of “cheapie” didn’t mean it was an inferior investment area.
“There is a huge difference between a cheap area that just doesn’t have much going for it from an economic point of view, and locations such as these ones, where there is rising sales activity, new major infrastructure under way, proximity to jobs’ nodes, as well as affordability,” Mr Ryder said.
“Those seeking to buy in a price range between $400,000 to $600,000 can still find possibilities for houses in the cheaper areas of some of our capital cities – and, increasingly, investors who are aware of the current trends can find good options in the market for units and townhouses.”
For investors looking for good buys in the city, houses in Darwin, the City of Melton in Victoria and the City of Salisbury in South Australia all offer solid opportunities.
Those after units should turn to the City of Perth and the Inner Brisbane Precinct.
Mr Ryder said Darwin was an unusual selection in the top five city cheapies as it was generally not on the radar of many property investors.
“Darwin very rarely makes top property investment location lists, but the economic situation in the Northern Territory capital has changed that,” he said.
“Not only does Darwin have serious housing affordability with median house prices in the $300,000 to $400,000 price range, but it also has excellent yields and myriad massive infrastructure projects.
“On top of that, about half of the suburbs in the City of Darwin are classified as positive with rising transactions being recorded over the past year or more.”
Hotspotting General Manager, Tim Graham, said investors had increasingly recognised the opportunities available in regional areas over the past decade in particular.
“There continues to be excellent options in regional Australia where buyers can access houses between $400,00 and $600,000, which also have good prospects for future capital growth,” Mr Graham said.
“Our research shows that investors can buy in regional areas at affordable prices, achieve above-average rental yields, and look forward to good price growth.”
Mr Graham said the City of Geraldton in Western Australia had featured on the top five regional cheapies list for more than a year because it continues to offer solid opportunities for investors.
“Even though the region has recorded price growth of late it remains possible to purchase a house in the area between $300,000 and $400,000,” he said.
“Plus, recent research showed that Geraldton – located about 400 kilometres north of Perth – had 17 of the top 50 suburbs in WA for property value growth.”
