Breaking News
0

Top 10 places to score a property bargain in Australia

Economic IndicatorsFeb 08, 2019 11:55
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 Australia's top 10 bargain suburbs 2/2

With property prices plummeting across Australia, it’s true to say it’s a buyers’ market and RiskWise Property Research has identified the Top 10 places to score a bargain with the expectation of solid capital growth down the track.

RiskWise CEO Doron Peleg said buying a ‘bargain’ property doesn’t necessarily mean buying a ‘cheap’ one.

“It’s more about knowing where to buy for long-term capital gain,” Mr Peleg said.

“Sure, there are a lot of well-priced houses out there but if they are not expected to grow in value down the track then they aren’t the best buy.”

RiskWise analysis has identified the Top 10 most affordable suburbs Australia-wide where solid capital growth is expected, even if Labor win the Federal election and make changes to negative gearing and capital gains tax.

The ALP proposes to limit negative gearing to new houses only and reduce the discount on capital gains tax from the current 50 per cent to 25 per cent, and the impact on the housing market, already in a state of turmoil, will be significant, he said.

“A number of markets across Australia are already experiencing weakness and the introduction of these reforms will hit them hard,” Mr Peleg said.

“However, these suburbs we have identified are expected to continue to do well as they have a number of things going for them.

“For starters, they are mostly within 100km of a capital city which means, provided there is a good public transport and road infrastructure, commuting to work is not too much of an issue.

“Also, these are affordable suburbs that enjoy strong demand during a period of lending restrictions and lower borrowing capacity.

“This is certainly the case for Norlane and Lovely Banks, for example, which are both northern suburbs of the Victorian port city of Geelong which has, and is expected to continue, to enjoy good capital growth. Geelong has benefited from high population growth, a rise in infrastructure projects, an improved economy and more jobs, and this has greatly increased the popularity of the area.

“Add to that it only takes an hour to drive to Melbourne and housing is significantly more affordable, it is ticking plenty of boxes for a lot of people with their eye on capital growth in the future. You can buy a house in Geelong for around the same price you could buy a unit in Greater Melbourne. It represents excellent value for money.”

Norlane, with a median house price of $370, 931, and Lovely Banks, with a median house price of $455,868 are enjoying strong demand with both enjoying capital growth of 26 per cent in the past 12 months, in a contrast to the current weakness in the property market. The capital growth for Greater Melbourne in the last 12 months is -5.8 per cent and the median house price is $780,130.

Hollywell, a waterside lifestyle suburb on the northern Gold Coast and only 67km from the Brisbane CBD, had capital growth of 13 per cent in the past 12 months. It is characterised by many older-style houses ripe for renovation. Close to schools, shops and the beach, it has many canal-fronting properties suitable for families with good road infrastructure networks to make commuting easy.

Mount Ommaney and Sinnamon Park (both with 13 per cent capital growth in the past 12 months) are only 14km from the Brisbane CBD. Both border the Brisbane River and many of their properties enjoy big blocks in leafy surrounds with views to the city. These lifestyle suburbs also neighbour protected bushland.

Gaven, which had capital growth of 12 per cent in the past 12 months, is a suburb of the Gold Coast about 66km from the Brisbane CBD. Characterised by older-style acreage properties with lots of scope for renovation, it is close to the M1 and train stations.

The leafy suburb of Gordon Park is just 5km north of Brisbane city. Known as the smallest suburb in the Brisbane City Council, it is characterised by well-maintained character homes and is bordered by recreation area Kedron Brook. It neighbours Stafford Heights which also made it on to the list.

While both Doonan and Twin Waters are Sunshine Coast suburbs, and therefore further away from the CBD than others on the Top 10 list, they are located in a burgeoning area that is extremely popular with interstate buyers looking for lifestyle in more affordable areas than Sydney and Melbourne.

Mr Peleg said off-the-plan units, particularly in over-supplied areas, still topped the list of the most perilous property investments, and these risks would rise dramatically if changes to negative gearing and capital gains tax go ahead causing the creation of primary and secondary markets.

Top 10 places to score a property bargain in Australia
 

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments
Rod Williamson
Rod Williamson Feb 08, 2019 21:50
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Haha. Good luck with that. Another vested interest hack spuiking their own book. They just turned down the credit tap so cant see how you are going to have capital gains while everywhere else continues to fall. Sorry, thats right Australian property never declines and we dont have recessions.
Reply
0 0
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email