For investors with $500,000 to spend, a new report outlines the best suburbs to invest at that price point.
“Specifically the inner eastern corridor from Surry Hills, through Darlinghurst to nearby Potts Point, where you can still purchase studio and some one-bedroom units for under $500,000,” the report states.
Units in this region bring in strong rental returns and often present opportunities to add value, HTW suggests.
“Since the last time we spoke about the circa $500,000 range in western Sydney, prices surged between 8 per cent to 15 per cent depending on the suburb as per APM property monitors,” the report states.
“A strong demand for housing is expected in both suburbs in the coming years owing to the increase in private and government developments,” the report states.
Alternatively, investors could consider apartments in the inner city.
“The lazy $500,000 will also find you something in New Farm or which are steaming hot locations,” the report states.
In Western Australia, Bassendean in is given as an example of a middle-ring suburb with strong growth potential.
“Our recommendation is to look at areas like this which is close to public transport links, amenity (shops, cafes), have an ageing population with older housing stock, located on larger, traditional sized lots,” the report states.
In the regions, the authors said the suburb of Busselton is increasing in desirability and affluence.
“Consequently, this will result in good capital growth over the medium to long term as an increase in population will lead to stronger demand of a product that has limited scope to increase in supply,” the report states.