While renting a place seems like a much cheaper option now, a recent analysis showed that it can be more affordable to buy a property in some suburbs in Australia than renting a place in Sydney or Melbourne. This is good news for those who are looking for affordable homes to live or invest in Australia. However, there are other factors one must consider aside from affordability when it comes to choosing or buying a home in a specific suburb.
If you’re one of those who are looking to buy a property to invest or live in in one of Australia’s suburbs, we got you. In this blog, we tackle some factors to consider when choosing the best suburb to invest and live in, along with the latest data on Australia’s suburbs.
How to choose a suburb to invest in
1) Determine your budget
Before you start looking for the best suburb, you need to know how much money you have set aside for your house purchase first. The majority of purchasers' purchasing power determines where they can invest, especially in Australia where median house prices vary greatly depending on where you buy. For instance, property prices in today's market are expected to range from $500,000 in Perth to $1.1 million in Sydney.
To know your budget and borrowing capacity, it's a good idea to visit with a mortgage broker or lender and seek pre-approval for a loan. From there, you can choose from a list of areas or regions where you can buy your dream home within your budget.
2) Research about the construction works in the area
Remember that if there is a lot of home construction in the works, there may be an oversupply, which may lower prices, property values, and rental yields. However, construction of amenities and other infrastructure is a different story.
The availability of amenities and infrastructure contributes significantly to the value of a suburb, so keep an eye on government ideas for implementation. Look into what infrastructure projects are currently underway in the neighbourhood such as any new public transportation or shopping centre nearby. These features can increase the appeal of a house to potential tenants and/or home buyers.
3) Consider neighbouring suburbs
Consider the long-term picture when investing for capital growth. This suggests that something that is currently booming may not be a suitable investment because prices are already high and returns might see a downward trend. As a result, you may be unable to obtain the maximum profits that you desire. If this is the case, you should avoid peaking locations and instead choose a neighbouring, less expensive choice that will benefit from the ripple effect. You'll have a claim in the region when it starts to boom. Nearby areas may also provide more possibilities that are more in line with your budget and preferred property type.
How to choose a suburb to live in
1) Set your budget
As mentioned earlier, your budget will determine where you can buy. There are far more affordable areas where you can buy a home, but outside business districts and booming areas such as Sydney and Melbourne, for example.
2) Evaluate your lifestyle
You want to be sure the suburb you choose to reside in suits your lifestyle, especially if you’re planning to live there for a long time. If you prefer being up and about, you might want to consider moving to a suburb with plenty of restaurants. Surrounding your property with restaurants, cafes, and bars produces a vibrant atmosphere and urban pulse. Living near a park also provides easy and enjoyable ways to spend time outdoors with friends and family. They're fantastic for some outside exercise and community events, and they're also good for mental health.
3) Consider your needs
Transportation, distance to schools and offices, and health and safety are among the factors one must consider when choosing a place to live in. If you don't own a car and rely on public transportation to get around, you should look for a home that is close to public transportation. It is more convenient to live within walking distance of a railway station than to worry about finding a parking spot near the train station during rush hour throughout the week.
If you have children who are studying, you must consider the school zone in your target suburb. Purchasing property in a highly desirable school district can ensure property development as other families seek to relocate to the region. Houses in the school zones of popular public primary and secondary schools are selling for up to $400,000 more than those outside the zone, according to REIV.
And of course, don’t forget about health and safety. Consider living in proximity with hospitals, medical centres, or drugstores. Being close to your doctors makes seeing them very convenient and saves a lot of time. It also gives you peace of mind knowing that you can get to health facilities quickly and easily when you need them. And for complete peace of mind, do some research on crime rates, community events, local businesses, and rental property vacancy rates before you start calling a new suburb your home.
What are the booming suburbs now in Australia?
Despite inflationary pressures and rising interest rates causing a cooling period for the Australian housing market, the new quarterly Well Home Loans Green Shoots report has found 20 Australian districts that are booming. This is based on the combination of decreasing inventory levels, days on market decreasing, and asking prices growing over the past three months. This list includes nine metro and eleven regional locations from seven different states and territories.
Here’s the top 20 suburbs in Australia based on the Green Shoots report along with their median asking price:
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Campbells Creek, Vic (House) - $659,000
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Corinda, Qld, 4075 (House) - $1,208,340
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Albion Park Rail, NSW, 2527 (House) - $772,500
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Tuncurry, NSW, 2428 (House) - $705,000
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Lithgow, NSW, 2790 (House) - $429,000
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Albion Park, NSW, 2527 (House) - $821,600
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Smithfield, NSW, 2164 (Unit) - $691,200
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Greenwith, SA, 5125 (House) - $545,000
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Rylstone, NSW, 2849 (House) - $480,000
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Gagebrook, Tas, 7030 (House) - $320,000
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Chidlow, WA, 6556 (House) - $649,000
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Calderwood, NSW, 2527 (House) - $949,000
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Enoggera, Qld, 4051 (House) - $1,025,000
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Glenunga, SA, 5064 (House) - $1,400,000
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Cranbourne North, Vic, 3977 (Unit) - $490,000
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Wangi Wangi, NSW, 2267 (House) - $897,600
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Golden Grove, SA, 5125 (House) - $575,500
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Banks, ACT, 2906 (House) - $779,100
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Woodrising, NSW, 2284 (House) - $663,000
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Cranbourne East, Vic, 3977 (Unit) - $504,720
However, if you’re more interested in suburbs with the most affordable houses, here’s a quick list from news.com.au.
New South Wales
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Bidwill – $567,472
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Emerton – $641,267
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Blackett – $644,448
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Whalan – $668,022
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Hebersham – $709,508
Northern Territory – Houses
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Moulden – $383,943
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Gray – $423,336
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Woodroffe – $455,205
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Driver – $457,674
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Berry Springs – $486,106
Queensland – Houses
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Stapylton – $226,259
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Lamb Island – $302, 155
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Riverview – $302,164
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Macleay Island – $312, 484
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One Mile – $319,602
South Australia – Houses
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Elizabeth South – $221,068
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Elizabeth North – $243,045
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Davoren Park – $250,568
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Smithfield Plains – $261,293
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Gawler West – $275,377
Tasmania – Houses
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Gagebrook – $334,660
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Herdmans Cove – $359,608
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Risdon Vale – $409,105
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Bridgewater – $411,239
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New Norfolk – $403,991
Victoria – Houses
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Bangholme – $448,835
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Melton – $472,114
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Melton South – $507,444
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Coolaroo – $507,501
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Kurunjang – $514,184
Western Australia – Houses
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Medina – $279,338
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Armadale – $283,982
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Camillo – $294,611
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Calista – $297,702
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Orelia – $303,463
Undecided about your next move? Talk to our brokers
We at Fastgrow Finance can help you get the best financial solutions for you to help you achieve your dream home. We understand the ins and outs of the market and we keep updated with all the national and global events that can have an impact on you. This is so we can provide you with reliable services and help you achieve your financial goal.
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Please get in touch with us directly. Our knowledgeable advisors and trusted brokers will work with you to determine your objectives and screen and help select a provider that meets your needs.
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