If you bought a property in most parts of Sydney or Melbourne half a decade ago, you will have made a pretty penny. It was almost impossible to lose money in these markets in 2015 and 2016; the gains kept coming and going and arriving.
Six-figure profits were plentiful for investors during this period. And while these prosperity conditions are over, there are still many opportunities to take advantage of real estate in today's market conditions.
In fact, even in every city, there are micro-markets that operate at different rates. Nerida Conisbee, chief economist at REA Group, said that even in Melbourne and Sydney – which are "in the midst of the biggest price drop right now" – some suburbs continue to outperform.
There is also an international appetite to take into account, with foreign buyers favoring different aspects of the market from those chosen by investors and local owners.
"Foreign investors, especially those from Asian countries, are very focused on education, especially in Melbourne and Brisbane. So when we look at the major purchases from Asia, it's places like Carlton and Clayton in Melbourne and St Lucia in Brisbane, "says Conisbee.
The appetite of foreigners for real estate is just one of many factors that long-term investors must take into account. Unfortunately, as investors, we do not have the crystal ball telling us exactly where to invest to make the biggest profits in 2019 – but that's the second best thing to do.
Thanks to our panel of renowned experts and the latest CoreLogic resources, rich in data, we present the Your Investment Property's Annual Guide to Suburban Areas – a detailed ranking of the top 100 real estate markets in 2019.
How were the suburbs selected?
The annual list of the 100 most beautiful suburbs of your investment property is the best guide for real estate investment markets in Australia.
We turned to the experts to gather and analyze data on thousands of Australian suburbs to find the most promising neighborhoods in 2019. The suburbs listed here were chosen for several reasons:
Affordability: As a result of the recent economic boom in Sydney and Melbourne, the affordability of these markets has been limited. Although all the suburbs on this list are not considered "affordable" – there are a few seven-digit locations – we aimed to find suburbs at competitive prices, whether for the customer base to which they belonged. address or to compare it to neighboring areas offering similar offers.
Application: Each suburb had to meet the desirable place of residence requirement – a region where a large and diverse tenant base would create a long-term demand for housing.
Demographics: The growing suburbs have been at the top of our list as they ensure a growing and continuing demand for the housing market. We also focused on the suburbs where the average household income of residents increased.
Economics: Real estate markets supported by a healthy economy generally offer the best potential for price and rent growth. We have therefore looked for regions with growing economies that favor wage growth and relatively high disposable incomes.
Growth Prospects: The areas with the highest growth potential in the short and long term were very well ranked. We took into account past property cycles, the current sentiment of buyers, supply and demand issues and the strength of the local economy.
Improvements: Markets were reduced if several changes were planned, underway, or recently completed, which would encourage more people in the region and stimulate demand. These include new infrastructure, gentrification and urban renewal.
What was not retained?
As always, the suburbs we have excluded are just as important as the suburbs that have been in the Top 100. Markets in which investors will likely only realize short-term gains in less than five years, with long-term risk at risk. long-term future, were not classified. This means that the following markets have not been prioritized:
Holiday Paradise: It is almost impossible to predict the areas that will be fashionable for the next generation of holiday home buyers, and these areas may be unstable.
Monoindustrial Towns: These are small isolated regional communities that rely on only one important sector to support their economies.
Retirement Places: This may be a nice place to retire, but renewed interest from those who are out of work does not create a solid foundation for growth.
Speculators' Markets: These are suburbs that can benefit from a development, a proposed infrastructure or an investment, but this has not still confirmed.
Are these suburbs a safe bet?
Although we would like to say that they are, we can not promise it. While our suburban guide offers the best choices among the industry's most experienced experts and data analysts, highlighting areas with strong growth prospects for the coming year, there is unfortunately no "Safe bet". Including a suburb on this list does not guarantee profits or returns.
Instead, we suggest that you consider this list as a starting point – a starting point for initiating your own due diligence.
Some of the suburbs in our annual Top 100 may be the perfect addition to your wallet because they deliver the exact return you're looking for. Others may be less suitable – only after you have done a thorough research, in consultation with your own advisors, must you make an investment decision.
Your investment property recommends you:
* perform a thorough due diligence on any property you plan to use
– Never buy anything based on the words of someone else without looking for yourself
* obtaining an independent appraisal or price guide from an unrelated party
before making an offer on a property
* be strategic in your investment decisions: invest in a suburb and in a property
that will satisfy your appetite for risk, your needs and your budget
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To read what the data and the experts had to say on this subject
100 suburbs see the full 23-page guide in
January 2019 edition of Your Investment Property magazine
– available for download.
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