Earlier this month RP Data issued a report on behalf of Aussie Home Loans that identified the Top 100 suburbs. The report included suburbs from Australia’s metropolitan housing markets and regional housing markets that are likely to be the best suited for family living. You might wonder if this report can assist you in property investment, but in actual fact the report can be extremely useful because families make great tenants and provide the best property investments for a property investor.
Renting to families will make your investment property their home. They also often stay for the longer term, which makes property management a breeze. So if you can identify a top family suburb, it will help you to identify the best property investment. The report also identified some really interesting findings about the best investment property suburbs for families. The results showed “a great deal of variability from region to region, however it was the suburbs that showed a good blend of housing affordability, large block sizes and amenity that rose to the top of the list.
The report also showed that while many families aspired to live close to the city or coastline, it was generally those suburbs located in the middle to outer ring housing markets where the large proportion of results fall. These markets tend to offer more affordable housing options that are located on larger blocks of land compared with suburbs closer to the CBD. The level of amenity and proximity to essential services such as schools and health care also play a large role in the analysis” (Aussie Home Loans).
The report confirms Investor Assist's methods and supports what they have been teaching their investors. Some of the best property investment opportunities can be found in newer or outer suburbs that are slightly removed from the Perth CBD. The reason being they:
• Are more affordable
• Have larger block sizes
• Are close to good amenity
• Offer strong transport links
• Have plenty of schools and community facilities
Investor Assist Investment Properties
The investment properties currently profiled on the Investor Assist website are all located in outer suburbs to the north or south of Perth in newer estates with strong existing (or planned) infrastructure. Some of these suburbs include Alkimos, Ellenbrook, Aveley, Baldivis and more.
We weren’t surprised to find that only four Perth suburbs were featured on the RP Data Top 100 list of best property investments and they included Byford at #4, Floreat at #55, Forrestfield at #78 and Wanneroo at #86. This can be largely attributed to the growing affordability issues in our state, plus supply and demand issues. There is still plenty of useful information Perth property investors can glean from the report.
Interestingly the report showed Melbourne had the most suburbs in the Top 100 (31%) followed by Sydney (21%), Adelaide (12%), Hobart (9%), Perth (4%) and Darwin (1%). So if you are an investor in Melbourne, you are spoilt for choice.
The good news is the report confirmed our investment offerings are centred on the right locations making it the best way to buy an investment property. We have avoided suburbs, such as Floreat for being a very expensive area with few vacant lots for sale, and Forrestfield as it does not have a great deal of land for sale either. However, much of our investment activity focuses on the City of Wanneroo and around Byford. This is where property investors can take advantage of the ‘halo effect’, the best way to invest in property.
Researching Investment Properties
Investor Assist recently published an article regarding the ‘halo effect’ and if it is a help or a hindrance for property investment. If you have not read the article, you can view the full version online.
In summary, the ‘halo effect’ (when specific to property investors) can be used to describe the way value tends to filter from thriving suburbs into the areas surrounding it, like a ‘halo’. This can provide plenty of positive opportunities for investors looking for the best property investments.
Often by broadening your search by a 10-20km radius you can save yourself upwards of $20,000 on a block of land or more for a house. The property isn’t compromised because it is still close to the shops, schools, beach, or a train station, which is the best way to buy an investment property. You may have made significant savings by looking further afield, but it’s likely to have minimal impact on your rental returns, so you are already in front, just by working the halo effect to your advantage.
As mentioned before, it’s not recommended that you avoid the ‘hot spots’ or the suburbs identified on the Top 100 list because they are where you want to be for the best property investments. But unfortunately often when positive word gets out about a suburb, it quickly becomes where everyone wants to be which can increase the house and land prices.
This is where Investor Assist encourages you to look within a 10-20km radius of the ‘hot spots’ or Top 100 suburbs for the best property investment to find yourself some real value, potentially putting yourself in front from the very beginning of your investment journey.
For example, if you look at Byford, which appears at #4 on the Top 100 list, RP Data shows the current median sale price is $465,500 (as at January 2014). However, Investor Assist can offer to you house and land packages in suburbs such as Baldivis with off-the-plan villas currently on the market. Plus in 2013 we offered house and land investment opportunities in Wellard (approximately 20kms from Byford) for around $330,000. By purchasing or building brand new in these peripheral suburbs there are significant savings to be found but you are not compromising quality on the best real estate investments.
The same also applies to the northern suburbs. RP Data statistics show the current median sale price in Wanneroo (a Top 100 suburb) is $495,000 - $500,000 (as at January 2014) and Investor Assist is offering investment properties within the City of Wanneroo in areas such as Madeley starting from $469,000; Alkimos from $488,000; and Aveley from $381,000. These prices are all significantly under the median sale price for Wanneroo but property investors still benefit from the same amenities, facilities, schools, parks, beaches, educational facilities, transport links and more. The team at Investor Assist believe this is the best way to buy investment property.
Our Property Investment Tips
Investor Assist urges you to keep an eye on industry reports for top performing suburbs but always be open to broadening your search. There is plenty of value to be found in suburbs surrounding ‘hot spots’, which can make the best property investments, and if in doubt just check out the investment opportunities available on the Investor Assist website because it is highly likely we may have already identified properties in some these general areas.
The Investor Assist team spends countless hours researching the best property investments in Perth for you to invest in so let us do the hard work for you! Contact our team of Property Investment Specialists today on 9200 7200 or email email@example.com – we are happy to help!
Alternatively, if you would just like some more information on property investment, our Assist Kit is packed full of resources to help get you started.
DISCLAIMER: This information is of a general nature only and does not constitute professional advice. We strongly recommend that you seek your own professional advice in relation to your particular circumstances. Investor Assist Pty Ltd Builders Registration No 13818. Source: RPdata.com.au