Negotiation tables across some of the booming investment-grade suburbs over the past decade are now turning in favour of investors.
A new study by Well Money identified 20 suburbs where investors have the edge to bargain, as vendors would only have to give up a fraction of the profits the property made over the past 10 years if they were to give even a 10% discount.
Of the 20 suburbs, 13 are from New South Wales, five from Queensland, and one each from Victoria and Tasmania.
Well Money CEO Scott Spencer said some investors have been waiting on the sidelines amid uncertainty over interest rates and inflation, but there are locations across the country where they could already break into with confidence.
“Every one of these 20 suburbs has enjoyed a net price gain of at least 107% over the past decade; furthermore, they all have a vacancy rate under 1.5%,” he said.
“The data suggests these are locations that would be easy for investors to rent out right now and would probably enjoy strong capital growth over the long-term.”
State
Suburb
Property type
10-year gain
NSW
St Huberts Island
House
174%
NSW
Empire Bay
House
174%
QLD
Tugun
House
151%
QLD
Currumbin Waters
House
151%
NSW
Woongarrah
House
135%
QLD
Twin Waters
House
132%
NSW
Horningsea Park
House
118%
NSW
Bilambil Heights
House
118%
NSW
Winmalee
House
117%
TAS
Hobart
Unit
116%
NSW
Albion Park
House
116%
NSW
Ropes Crossing
House
116%
NSW
Dee Why
Unit
116%
VIC
Marong
House
115%
NSW
Cooranbong
House
115%
NSW
Prestons
House
114%
NSW
Fern Bay
House
114%
NSW
Hamilton North
House
114%
QLD
Little Mountain
House
107%
QLD
Meridan Plains
House
107%
Mr Spencer said the falling demand and the high price growth in these areas are putting investors at a comfortable spot to negotiate if they are intending to buy.
“If investors reacted by offering a 10% discount, they’d know vendors would probably be able to accept because they’d be surrendering only a small share of the considerable profit they’d made over the past decade,” he said.
Still, it is important for investors to carefully examine their financial position before taking action — Mr Spencer said it is risky to buy if buffers were not in place, especially with the expectations of further rate hikes.
“For those investors who are financially secure, these 20 suburbs are worth considering as possible locations in which to invest,” he said.
—
Photo by @kapischka on Unsplash.
Top Suburbs :
berala
,
trott park
,
coburg north
,
mt lawley
,
west rockhampton
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