NINE Queensland cities are tipped to return more bang for buck than star performers Sydney and Melbourne — and they’re about 50 per cent cheaper too. Latest analysis by market research firm Propertyology found 39 growth locations where median house prices were less than $400,000 but whose returns were expected to beat the southern capitals.
Propertyology managing director Simon Pressley said the list included nine in Queensland. “I am not a betting man however, each of these locations have a superior three-year outlook to Sydney and Melbourne,” he said. The Queensland suburbs were expected to come out strong.
“All things being equal over the next three years, both Sydney and Melbourne might be flat out producing 10 per cent cumulative price growth whereas Propertyology believes that each of the nine Queensland locations have potential to exceed that”. Ipswich and Logan in the greater Brisbane region were on the list of top growth areas where the median house price was less than $400,000. The locations were assessed based on affordability, economic diversity, essential infrastructure, lifestyle, increased demand for housing and expected improvement in economic conditions.
Mr Pressley said for less than $400,000, there could be good returns for the taking. “Some homeowners, particularly in the big cities, think nothing of spending $400,000 on a renovation or $800,000 to $1 million to buy a single property. However, for the same amount, you can buy two or more affordable properties in locations with considerable upside growth potential and rental returns that generate positive or near-positive cash flow.” He called for investors to not underestimate the lifestyle and infrastructure potential outside big cities.
“Affordable property is available in every state and territory so there is no need to buy property in locations that are past the peak of the latest cycle and will burden you with significant out of pocket expenses. Interstate migration figures are already showing a shift away from Sydney to affordable lifestyle locations, many of which are now accessible by a one-hour direct flight. The rise of rentvesting is also testament to the growing demand for affordable property.”
Reference: Sophia Foster, Feb 19 2018 news.com.au available at: http://www.news.com.au/finance/real-estate/brisbane-qld/these-suburbs-under-400000-are-tipped-to-outshine-sydney/news-story/e42f18fdf571dfc6bd4374987e1377bc