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LocationScore names Australia’s top holiday investment locations

Property research site LocationScore has crunched the numbers and identified the top holiday hotspots for property investment across the nation.

The new research scores each suburb monthly out of 100 using eight key indicators that measure the level of supply and demand as well as growth prospects.

LocationScore co-founder and Research Director Jeremy Sheppard said the research showed that the long-held mantra that holiday homes were a bad property investment was not always true.

“Ordinarily I’d advise investors to buy in great growth locations, not simply a place they’d like to live in or where they like to go on holiday,” Mr Sheppard said.

“According to LocationScore, though, there are holiday locations around the country that stack up investment-wise, including having much more demand than supply, which is essential for capital growth.”

New South Wales

In New South Wales, units in Banora Point – just south of Coolangatta – had a remarkable LocationScore of 79 out of 100, while houses in nearby Bilambil Heights scored 75, according to the research.

Both suburbs are popular with holidaymakers from the north and south as well as being within striking distance of the Gold Coast.

“Closer to Sydney, houses in Kanahooka scored 78, no doubt due to its Lake Illawarra location as well as being within commuting distance of Wollongong – and even Sydney if you’re keen,” Mr Sheppard said.

“Gosford and the Central Coast are great markets in general for growth and have a holiday feel but are also only a short drive out of Sydney.

“Green Point borders Brisbane Waters so some of the properties along Avoca Drive are genuine water-front houses. Its LocationScore was a healthy 70 out of 100 for November.”

Houses in Berkeley Vale on the Central Coast also made the cut, scoring a solid 75.

Queensland

Mr Sheppard said while Queensland had a plethora of holiday destinations, not all of them made wise investment locations.

“Unsurprisingly, the Gold Coast has a number of suburbs which tick a lot of investment boxes, including strong local employment,” he said.

“Houses in Worongary scored 77 out of 100, perhaps partly due to the recent announcement that a new train station is earmarked for the suburb.”

Other strong Gold Coast locations include Elanora, which scored 75, and Currumbin Waters on 73.

Of course, there is more to Queensland than the Gold Coast, with Currimundi on the Sunshine Coast recording a LocationScore of 71 for November, no doubt partly due to its location just north of the major employment node of Caloundra.

Victoria

It may not be as glitzy as the Gold Coast but Clifton Springs near Geelong is kicking its own property goals with a LocationScore of 76. Nearby Torquay is also a beneficiary of the strong Geelong market at present, scoring 70.

The charms of Swan Hill, located on the Murray River near New South Wales, resulted in it scoring 71 out of 100 for November with much more demand than supply of property, according to the LocationScore research.

Tasmania

Tasmania’s property market is strengthening with plenty of demand from local and interstate investors.

Mr Sheppard said Hobart and Launceston were the top picks for holiday investment, with both locations backed up by robust local economies.

West Launceston and Invermay are two suburbs that are showing strong growth prospects, with LocationScores of 75 for November, he said.

“When you think of all the fantastic holiday destinations around the country, it’s pretty obvious from our list that great capital growth and great investments don’t often go hand-in-hand,” Mr Sheppard said.

“Although there are some fantastic places to holiday in Australia this summer, don’t be tempted to buy in one as an investment just because you like to visit every now and then.

“You either buy a holiday home or you buy an investment property, which are two different goals, but our research shows that sometimes you can combine both if you’ve done your research.”

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