Kathryn Lee - 24 Apr, 2019

Which suburbs should property investors buy in and avoid?

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Looking to get into the property investment market? Even for the most experienced investors, the property investment world can be a minefield. When buying a home, proximity to work, location, and nearby facilities may be your main checkboxes, but when buying an investment property, there’s a little more to consider.

Ultimately, when you buy an investment property you want it to actually be a worthwhile investment, so to help you out we’ve done the research and pooled together our pick of five suburbs you might want to look at investing in, as well as five suburbs you should probably avoid.

Of course, this is general advice, so changes to the market as well as personal circumstances should be taken into consideration before jumping into the property investment world.

Suburbs to consider investing in

Grovedale, Geelong, VIC
Median house price: $505,000

A suburb of the thriving city of Geelong, Grovedale neighbours the Geelong airport and has seen median house prices increase by 43.9% in the last five years. 15 minutes from the surf coast, it’s the ideal suburb for beach fanatics who can’t afford the price-tag of a beachfront address. Benefitting from Geelong’s booming economy, Grovedale is within easy access to plenty of local jobs, as well as being within a commutable distance to the Melbourne CBD – making it great for access to employment nodes. With so much going for it, Grovedale is definitely one for investors to watch.

Springfield Lakes, Brisbane, QLD
Median house price: $430,000

Springfield Lakes is located just 30km southwest of the Brisbane CBD. Great for the city commuter and families alike, the region has an estimated cash flow of $285 per month. Home to schools, parks, lakes, and bike tracks, the suburb is also serviced by the Springfield train line, with access from Springfield station. With our capital cities only expanding, Springfield Lakes offers the work/life balance that many families look for is worth a look at for investors.

Seaton, Adelaide, SA
Median house price: $515,000

Seaton sits in Adelaide’s West, located just 9km from the CBD. With the suburb home to two schools as well as the Royal Adelaide Golf Club, the suburb boasts a family-friendly atmosphere. Couple that with its proximity to Grange Beach and you’re sure to have a winner. In the last five years, median house sale prices in the area have increased by 23.6%, indicating an annual growth rate of 4.3%.

Queanbeyan, NSW (Located on the ACT border)
Median house price: $523,000

With easy proximity to Canberra without the premium price-tag of many ACT suburbs, Queanbeyan is Canberra’s best-kept secret. Long teased by its ACT neighbours, this border town is often held in contempt by Canberrans, but in truth, it is practically another suburb of Canberra, with easier access to the Canberra CBD than some other ACT addresses. A town in its own right, it has access to its own local employment nodes, as well as all the jobs Canberra has to offer. With an annual growth of 4.2% and an estimated cash flow of $321 per month, Canberra’s dirty-little-secret is worth considering for your next investment.

Risdon Vale, Hobart, TAS
Median house price: $262,000

If nothing on the mainland is ticking your fancy, how about considering some of the options down south? Tasmania has plenty of opportunity for investors, such as this goldmine of a suburb, Risdon Vale. Only a 14-minute drive from the centre of Hobart, this suburb has plenty of potential for investors. With an annual growth of 9.3% and an estimated cash flow of a whopping $635 per month, we might even consider buying there ourselves.

Suburbs you should probably avoid investing in

Canterbury, Melbourne, VIC

Whilst Melbourne’s eastern suburbs have traditionally been preferred by many over Melbourne’s western and northern offerings, frankly, it’s just not worth it. Stuck in the centre of Melbourne’s bustling east, as far as investment prospects go, Canterbury isn’t much to look at. With annual growth at only 2.1% and the estimated cash flow sitting at -$3,808 per month, there are plenty of better options, unless you have your heart set on this Melbourne address.

Croydon, Sydney, NSW

Despite being located in Sydney’s inner west – which is usually a safe enough investment – property investors should be wary of Croydon, with annual growth set at just 2.9% and the estimated cash flow sitting at -$1,373 per month.

Coomera, Gold Coast QLD

Despite the Gold Coast having some alright investment options, with annual growth sitting at 0.7%, Coomera isn’t one of them. This suburb is best avoided by investors.

Glenelg East, Adelaide SA

With annual growth set at 3.7%, Glenelg East does not look like a bad spot to invest from the outside, however, when you look at the stats of surrounding suburbs, you will see that Adelaide has some much more attractive investment options for your dollars.

Blacktown, Sydney NSW

Despite Sydney’s constant expansion and the ever-growing push ‘out west’, investors should be wary of investing in Blacktown due to its recent influx of new apartments pushing rent down for tenants, leaving investors with the potential to be stuck with a mortgage they can’t afford.

Words by Kathryn Lee

All data regarding annual growth and estimated cash flow sourced from realestate.com.au/invest

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