Wed 14 Mar, 2018
Are these 6 promising areas to invest in property in 2018?
It’s no secret that Australia’s property market is growing faster than many other developed countries. A rapidly expanding population, a property-loving culture and vast developments in infrastructure and employment opportunities means more and more of us are flocking to buy a slice of the action. Rental demand has been ramping up in many areas, too, which is music to investor’s ears.
Even with the median house price index falling by 0.3% in December, driven mainly by major falls in Sydney and Darwin; that doesn’t mean there aren’t some great investment opportunities across Australia for property investors.
First of all, when looking for an investment property, be smart. Buying an investment property is vastly different to buying a home – lead your search with strategy ahead of all else. Look out for opportunities hidden within the market, like areas that are gentrifying, or where there is predicted to be a spike in jobs and wage growth due to improved transport links.
Here, Squirrel Super share our top six hot spots to watch for investment opportunities in 2018.
The V-Line train service can get you from Ballarat to Melbourne CBD in little more than an hour – and this proximity hasn’t gone unnoticed. Major upgrade works on Ballarat’s line will also have a positive impact on the local property market, despite causing delays for commuters initially. Getting in before the boom is a smart investment strategy that often pays off incredibly well.
2. Northern Adelaide
Many have been waiting for the property boom to reach the Southern Australian capital, but 2017 didn’t quite deliver. Investors looking for a slice of the potential pie should turn their attentions to the northern suburb of Elizabeth. Having been tipped as the CBD of the north following works on an expansion of the local town centre, Elizabeth still enjoys some of Adelaide’s cheapest median housing. Compared to a city-wide median of $446,500, areas of Elizabeth can be snapped up for as little as $169,000.
Townsville has sat at the bottom of the pile when it comes to investment priorities for some time. It’s no surprise, really, given its steadily declining demand and property prices, but signs are pointing to a recovery. One of the most in-demand areas of Townsville, Castle Hill, is on the brink of hitting a $1million median house price, while Townsville as a whole trumped Brisbane and the Gold Coast as realestate.com.au’s most clicked area going to auction in the whole of Queensland.
4. Perth – Inner Western and Northern Suburbs
The fallout of the mining boom has placed Western Australia in a dark place in terms of property robustness in recent years. Having lacked in significant market growth since its peak in 2007, 2018 is tipped to be the year of change. The rapid decline was mostly due to an oversupply of property, but thanks to the termination of a lot of residential construction, demand has finally caught up – a good sign of recovery, indeed. This subtle stabilisation is in itself generating demand across the state, particularly in Perth. Of Australia’s four major capital cities (Melbourne, Sydney, Brisbane and Perth), Perth has long been the most affordable. Its volatility put many buyers off, though, with too much uncertainty around investment viability, and such ripe activity in other state capitals. Developing infrastructure and a new wave of residential construction is setting Perth up for the year it’s been waiting for. If you’re looking for a new investment away from the uncertainty of Sydney and Melbourne, Perth’s inner western and northern suburbs could be a golden move for your wealth portfolio.
Believe it or not, Hobart recorded the strongest price growth of all capital cities in 2017. Employment growth is pushing up rental demand, too, which further evidences Hobart’s robust investment landscape for the year ahead. Look to West Hobart for the most sought-after areas according to local expert rankings, or scour the whole capital for other comparatively low-cost property to get ahead of the curve.
6. Liverpool (NSW)
Beginner investors may be tempted by the affordable lifestyle appeal of Sydney’s newest growth hubs like Liverpool and Blacktown. The new airport at Badgery’s Creek will give local economies a boost, while other local infrastructure developments are set to ramp up demand in both the rental and sales markets. For longer term growth, look to the inner west, which has recently seen substantial interest from families and savvy singletons.
Invest In Property With Your Superfund in 2018
Owners of self-managed superfunds are able use their super balance to invest in these property hot spots and take advantage of booming markets to grow their retirement savings. Squirrel Super is making SMSF property investment easier than ever, with low-cost maintenance fees and all the support you need to take control of your superannuation investments. For more information on commencing an SMSF, click here.
Squirrel Super reminds investors that all asset classes carry risks, and investment decisions should be carefully thought out.
Information in this article is not intended to be taken as investment or financial advice.