With property prices dropping in many major cities across Australia and predictions of more pain to come, picking the right suburb is like finding a needle in a haystack.
Property market analyst Margaret Lomas, founder of Destiny Financial Solutions, told Your Money Live that there are plenty of good options for prospective buyers, if you know where to look.
“People are worried about buying property at the moment and you can’t blame them -the headlines are screaming doom and gloom,” she said.
“But even among that, there is some good news around property… and there are definitely places you should be buying.”
While markets will always fluctuate, there are a few basic rules that always hold true when it comes to purchasing property, according to Lomas:
- Affordable properties will always attract buyers
- A bigger plot of land is always the better option
- Look for family areas, as families will always fuel growth
- Find ‘ripple effect’ suburbs – less expensive suburbs that neighbour high-value areas
With those in mind, Lomas shared her top five suburb picks for 2019.
This Victorian suburb located around 4km from Geelong’s town centre ticks all the right boxes, according to Lomas.
“The thing I like here is that it’s cheaper compared to East Geelong, which it borders,” she said.
Despite being mere steps apart, the median house price in East Geelong is $651,000 compared to Whittington’s $360,000, leaving plenty of potential for growth.
Lomas says the area is undergoing gentrification as state housing moves out to be replaced by owner-occupiers and family units.
And despite the property downturn, Whittington has recorded growth of 5.95 per cent in the last year.
Bibra Lake, WA
While property values are falling across Perth, a few standout suburbs are bucking the trend, including Bibra Lake.
While homes along the lake have an average price tag of $535,000, one street back from the water brings that figure down to just $390,000.
“It offers a fabulous lifestyle… it’s only about a 10 minute drive from the coast and there’s a freeway going right through Bibra Lake as well as a rail line,” she said.
That makes it about a 20 minute commute into Perth’s CBD.
One of the most positive features of the area is the soon to be opened USC Moreton Bay university campus, Australia’s newest university.
The project is expected to attract around $950 million into the local economy, plus 6,000 extra jobs, by 2036.
While the median price for a house is around $440,000, 2-3 bedroom units cost upward of just $300,000, perfect for the upcoming influx of students, said Lomas.
You may have heard about the Australian Space Agency, soon to be based and further developed in South Australia.
Because the project is expected to attract mid-to-high income earners to Adelaide, Lomas predicts they’ll be looking at the city’s up and coming areas, such as Modbury.
Situated around 20 minutes from Adelaide’s city centre, the suburb is currently undergoing beautification, with new walkways and cycleways being added.
Port Adelaide, SA
In addition to the space agency, Adelaide is also getting a new submarine base and shipyard which is expected to bring in another 4,000 jobs to the area.
Sitting adjacent to the base and 20 minutes from Adelaide’s CBD, Port Adelaide’s median house price is just $350,000, despite nearby suburbs averaging above $600,000,
“When you add to that, that it is on the peninsula and right by the coast, I think it’s a no-brainer,” she says.
For more, watch the full interview in the video above.
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