My Top Suburb Picks For Under $300K

My Top Suburb Picks For Under $300K

With many parts of Sydney & Melbourne getting well beyond frenzy mode at the moment, and APRA (Australian Prudential Regulation Authority)& ASIC (Australian Securities & Investment Commission) implementing further speed limits on lenders, and affordability at tipping point for many first timers, it’s important to know that there are alternative markets in Australia that represents strong capital growth & rental yield prospects for the fraction of the price.

 

Australia has a diverse property market which run at different sppeds. For example, we are continuing to see Darwin & Perth show negative growth, Brisbane & Adelaide showing signs of sustainable growth, and Hobart & Canberra seeing double digit capital growth (%) over the past 12 months according to Core Logic’sApril 2017 results. In addition, not all supply in a single market perform equally either, and this can’t be more true for the Melbourne market where we are seeing the ‘housing market’ show significant growth at over 17% & the oversupplied ‘unit market’ see around 5% growth over the past 12 months.

 

Bearing the above points in mind I wanted to share with you some alternative markets that have caught my eye in the $300K bracket. Of course, depending on what you are looking to achieve with your next property purchase, may differ from what I see as good value (in no order of preference):

 

Kallangur, Petrie, Deception Bay, Kippa-Ring – NorthernBrisbane, QLD(free-standing houses only)

Houses under $300K is becoming harder to find, however I have seen a number of properties under contract below $300K recently yielding above 6%. The Moreton Bay Regional Council has been pro-active in the gentrification of the area which recently saw the completion of the Moreton Bay Rail Link (access to CBD), the development begin for the new University campus at Petrie, plans for the Northeast Business Park in Burpengary projected to inject 25,000 jobs, and the large corporates including Costco, Bunnings & IKEA all setting up shop and the Westfield extension in North Lakes.

Newcomb, Thomson, Corio, Norlane – Geelong region, VIC (free-standing houses only)

It’s no secret Geelong has experienced significant growth over the past two years. However it’s the neighbouring suburbs of Newcomb, Thomson, Corio and Norlane which have caught my attention recently. For almost half the price of inner Geelong, there are still houses available for under $300K returning around 5% rental yield which is not too shabby for Victoria! Geelong is a diverse regional hub in itself, coupled with easy access up the Princess Freeway to the Melbourne CBD in less than an hour, and the second largest airport in Victoria, Avalon Airport only 10 minutes away. Definitely well worth a look into.

 

Christies Beach, Christie Downs, Noarlunga Downs, Morphett Vale – Outer Southern Adelaide, SA (free-standing houses only)

The middle to outer regions of Adelaide certainly represents good value if you have a limited budget. Although it’s been well documented of the slow population growth and low jobs growth, Adelaide continues to show consistent sustainable growth year after year. Not to mention strong cash flow opportunities of above 7-8% rental yield in some cases. Another positive to bear in mind is Onkaparinga Council which covers the above areas are embracing development, and for blocks over 600m2 you may be able to subdivide(please confirm with Council)adding another opportunity to add value. Gentrification of the area is well underway with older commercial & residential stock being made way for newer builds, and the TAFE, Colonnades shopping centre&Noarlunga Hospital nearby, and easy access to the Adelaide city centre via train.

 

Please comment in the section below if you have been currently buying or looking into any of the areas I mentioned above. If you have any further questions or queries, I’m always happy to answer them through my social media platforms.