Property Investment - 21 May, 2019

5 retirement hotspots for your next investment property

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With an increasingly ageing population, investing in future retirement living hotspots is a great focus for your property investment portfolio. Here are five suburbs worth considering according to a real estate expert.

Older Australians are a rapidly growing proportion of the population – the Australian Institute of Health and Wellbeing (AIHW) report in 2017, 15% of Australians (3.8 million) were aged 65 and over. In fact, the ABS predicts the cohort will increase by 139% between 2000-2030 and will comprise more than one in five of the total population – around 5.7 million people.

What do these numbers have to do with investing in real estate? The Department of Health reports as Australia’s population ages, regional populations will also continue to age, some more than others. They’ve predicted, for example, the older population is expected to more than triple by 2026 in regional Western Australia. They’ve also predicted retirees will continue to be concentrated in areas along the Australian coastline and that coastal regions are estimated to experience growth of 210% in the number of seniors between now and 2045.

That said, if the beach is not your investment cup of tea, Australia’s inland regions are also expected to experience significant growth (estimated at 179.7%) in the number of seniors.

To get your mind ticking over (for localised advice, we recommend contacting your local area experts for advice) James Pointon from Openagent tips these five suburbs for great choices for your investment dollars.

Esperance, WA

Quick stats:

  • Median house price: $361,013
  • Average house rental price: $280 per week, with a 5.32% rental return
  • Median unit price: $448,466
  • Median weekly rental price for units: $260, with a 5.84% rental return
  • House prices have grown by 4.23% in the past 3 years and 0.61% last year

As well as being popular with people of or approaching retirement age – the largest age group in the area is 50-59 years old – James says Esperance has several features that make it a great investment choice for those targeting the retirement market.

“Esperance is the perfect budget-friendly option if you’re looking for a place in Western Australia. It’s located on the south coast and is home to calm beaches such as Blue Haven and West Beach. It’s close to a range of tourist destinations – for example, Cape Le Grand National Park and Lucky Bay Beach. Esperance also has a local airport, making it easy to get back to the capital city of Perth.”

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Huon Valley/Huonville, TAS

Quick stats:

  • Median house price: $365,476
  • Average house rental price: $243 per week, with a 5.65% rental return
  • Median unit price: $266,476
  • Median weekly rental price for units: $530 per week, with a 6.46% rental return
  • House prices have grown by 9.97% in the past 3 years, and 0.39% last year while unit prices have grown by 21.71% in the past 3 years

Also popular with the 50 to 59-year-old demographic, James says Tasmania is a must if you’re looking for clean, cool air and low living costs. “Huon Valley is a popular retirement location with constant sunshine and a range of parks to explore,” he says.

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Crescent Head, NSW

Quick stats:

  • Median house price: $555,405
  • Average house rental price: $690 per week, with a 3.83% rental return
  • Median unit price: $312,339
  • Median weekly rental price for units: $400, with a 5.70% rental return
  • House prices have grown by 21.51% in the past 3 years and 1.53% last year, while unit prices have grown by 44.66%

The largest population group in the area is 60-69 years, and it’s located near the popular destination Port Macquarie (while offering more affordable property prices and living expenses).

“The atmosphere in Crescent Head is more relaxed compared to the hustle and bustle of Port Macquarie – nonetheless, it’s still lively during the holiday season. You’ll also have access to mountains, forests and wetlands,” says James.

Mornington Peninsula, VIC

Quick stats:

  • Median house price: $849,094
  • Average house rental: $498 per week, with a 3.00% rental return
  • Median unit price: $553,485
  • Median rental price for units: $430, with a 3.66% rental return
  • House prices have grown by 34.07% in the past 3 years and 4.18% last year while unit prices have grown by 28.60% in the past 3 years

As with Crescent Head, the largest age group in the Mornington Peninsula is 60-69 years. James says it’s likely to be a popular retirement town in the future for several reasons – it’s home to a range of coastal villages, beaches, vineyards and rolling hills and it’s located only 40km away from the Melbourne CBD, meaning travelling is easy.

Sunshine Coast/Noosa Heads, QLD

Quick stats:

  • Median house price: $998,161
  • Average house rental: $1,750 per week, with a 3.71% rental return
  • Median unit price: $780,826
  • Average rental price for units: $625 with a 3.69% rental return
  • House prices have grown by 22.00% in the past 3 years and 0.78% last year, while unit prices have grown by 28.72%

Another suburb with the largest age group of 60 to 69-year olds, James says for the most part, the Sunshine Coast is relaxed and peaceful. “Of course, it’s known for its beaches, weather and community feel. As a bonus, it has a local airport, making it easily accessible.”

If you’re keen to explore future retirement hot spots as the focus of your investment money, find local experts on OpenAgent who can help you zone in on an area set to increase in value that suits your requirements.

Words by Melanie Hearse.

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