4 top suburbs for investors in 2015
Four suburbs which are primed for imminent capital growth have been identified by prominent property experts.
Six property experts and commentators have selected the 50 suburbs across the country which are tipped to deliver investors the best returns in 2015 for Smart Property Investment’s annual Fast 50 report – with just four hailing from Victoria.
The inclusion of four Victorian suburbs on the list puts the state significantly behind New South Wales (21 suburbs), Queensland (13 suburbs) and Western Australia (six suburbs) – but on a par with Tasmania, which also saw four suburbs highlighted.
Destiny Financial’s Margaret Lomas said Carrum Downs was likely to experience price growth in the year ahead.
The suburb is desirable due to its close proximity to the Mornington Peninsula, she said, but remains significantly cheaper than neighbouring Seaford.
According to CoreLogic RP Data figures, Carrum Downs currently has a median house price of $345,000. Seaford, on the other hand, has a median price of $437,500.
The average gross rental yield for houses in the suburb is 5.0 per cent and climbs to 5.5 per cent for units – but Ms Lomas said investors should search for and secure yields upwards of six per cent.
Ms Lomas also highlighted Cranbourne for its investment potential, again citing relative affordability – particularly when compared to neighbouring Berwick, which she said can cost up to $100,000 more.
She said the area can offer impressive rental yields and boasts a “strong family demographic”.
The final suburb selected by Ms Lomas was Sunshine in Melbourne’s west. Sunshine first appeared in the Fast 50 report in 2014, when Domain Group’s Doctor Andrew Wilson highlighted its population spike and new town plan, which aimed to strengthen transport infrastructure and improve access to the CBD.
Ms Lomas included the suburb on the list this year based on its proximity to the city, the possibility of securing rental yields of five per cent-plus, and its position as a “hub of an $880 million regional rail project”.
The suburb of Spotswood also made the list, selected by Positive Real Estate’s Sam Saggers.
Spotswood, which is traditionally known for being largely industrial, is undergoing significant urban renewal and gentrification, Mr Saggers said.
He said investors would be wise to do their due diligence on zoning changes and target townhouses or warehouse conversions and units.
The full list, including suburbs from New South Wales, Queensland, South Australia, Tasmania and Western Australia, is in this month’s edition of Smart Property Investment magazine – currently on newsstands.
- <p>Spotswood will no doubt outperform over the medium to long term driven largely by close proximity to the CBD, transport and cafe scene. Anyone currently owning property in this suburb should definitely hold for the long term and reap the rewards.</p>0
- <p>The comparison of housing medians from one suburb to an adjoining one is misguided in the extreme - ie; Seaford and Carrum Downs or Cranbourne and Berwick; each has a different property profile, and very different demographic, and can't be used as a market guide. Rely on the value of one suburb dragging another up at your peril!</p>0
- <p>If there are any growth then it will be the western outter suburbs such as Sunshine west, Deer park, Caroline springs and Werribee. These are still very cheap compared to the eastern suburbs, and their approximation to the airport. when taken affordability into account, the Eastern suburbs can no longer be affordable by FHB or investor or developers, therefore property prices in those areas are saturated, ie will not increase in anytime soon. Unless there are high demands from the Chinese, which apparently show in Boxhill, Chatstone.</p><p></p>0
- <p>I'm In shock. Cranbourne and Carrum Downs? What are the growth drivers? Proximity to other suburbs is no guarantee of imminent growth, nor is population growth or new infrastructure. More science required before I believe this claim. Being 43km and 34km from CBD respectively, (and with Carrum Downs having no rail nearby), and limited household income growth evident, I just can't see how these two areas are long 'out-performers'.<br></p>0
