Property investment adviser Grant Foley has revealed five Australian locations where you can purchase freestanding houses for under $650,000.
The strong market conditions over the past year are not deterring investors who can still strategically purchase a house in a number of affordable locations around the nation, according to a Qualified Property Investment Adviser (QPIA).
Grant Foley Property Director, QPIA, and buyers’ agent Grant Foley said savvy investors were targeting smaller capital cities as well as major regional locations with lower buy-in prices as well as robust economic fundamentals.
“Sydney and Melbourne are really the outliers when it comes property price compared to the rest of the nation with house prices in those cities generally well above $1 million,” Mr Foley said.
“However, two-thirds of our population live outside of these two capital cities, where purchase prices are more affordable and often in places where there is excellent potential for value uplift over the medium- to long-term.”
Mr Foley, a PIPA member, said the recent 2021 PIPA Annual Property Investor Sentiment Survey reinforced that investors remain overwhelmingly opposite about property markets, plus many were looking at locations outside of Sydney and Melbourne.
The number of investors who see Brisbane as the state capital with the best investment prospect has soared compared to last year’s survey results – up to 54 per cent compared to 36 per cent in 2020.
Most investors continue to tip metropolitan markets as offering the best investment prospects at nearly 50 per cent (but down from 61 per cent in 2020), followed by regional markets on 25 per cent (up from 22 per cent), and coastal on 21 per cent (up strongly from 12 per cent last year), according to the survey.
Mr Foley said there were a number of locations that ticked many boxes for savvy investors keen to start or grow their portfolio.
Five investment locations with established freestanding houses under $650,000
- Moreton Bay, Greater Brisbane
Mr Foley said the Moreton Bay region was experiencing ripple growth from Brisbane City Council suburbs as first home buyers sought more affordable housing options.
“The region is also benefitting from strong interstate migration, as well as myriad major infrastructure projects including transport nodes and a new university – with gentrification of the Redcliffe peninsula also under way,” he said.
- Ballarat, Victoria
Mr Foley said this large regional town located just 1.5 hours’ drive from Melbourne was a sound option given its potential for commuters travelling to the Victorian capital a couple of days per week and working from home the remainder of the time.
“More and more investors are recognising the potential of major regional locations such as Ballarat that have diverse economies as well as being within an hour or two of a metropolitan area,” he said.
- Newcastle, New South Wales
Mr Foley said the charms of Newcastle may be well-known, but its house prices remained much more affordable than nearby Sydney.
“Newcastle has reinvented itself from a former steel city to a lifestyle location that boasts amazing beaches, jobs in health and education, as well as being within commutable distance to Sydney for those working in the Harbour City a day or two a week,” he said.
- Adelaide, South Australia
The Adelaide property market has historically been a sustainable one over the years, which means it generally doesn’t experience booms or busts, Mr Foley said.
“The buy-in price for a house in the City of Churches remains affordable for buyers and investors alike, including potentially purchasing in its investment grade middle ring, which is not an option in most other capital cities,” he said.
- Perth, Western Australia
Mr Foley said the Perth property market had been off the boil for a while before the pandemic, but that situation appeared to be rapidly changing.
“There was a point in time when the Perth median house price was on par with Sydney, which most people have forgotten about,” he said.
“Prices peaked in 2014 but there are signs that indicate future price growth in Perth with the opportunity to still secure freestanding homes for less than $650,000 there.”
Source: Bricks & Mortar Media