To buy or not to buy? The question every keen property investor wants to know. What are the House (not units or apartments) Hotspots and Notspots for 2019? So I’ll get straight into it…here are my top five to either pounce on or avoid around the country;
NOTSPOTS
- Darwin
Already experienced considerable growth a few years back and been on a steady decline and flattening. - Sydney
Those who bought in most Sydney suburbs prior to 2014 have done really well. There is a decline occurring so give it a few years before getting in here. Note: Roads are also a nightmare. - Brisbane
Investors have now started to move in here after witnessing the decline of Sydney. Already on the move with growth, meaning rental yields are starting to decrease. This one’s OK if you are an owner occupier wanting to live here. - Wollongong
Already seen some great growth and will start to slow as prices become unaffordable (unless a fast train is built in the next 24 months). - Small regional centres
I’m talking ‘One horse towns’ (sub 30,000 population). These towns commonly have high rental yields but may experience high vacancy and little growth. A lot of these towns also in drought around the country.
HOTSPOTS
- Bendigo
This one is close proximity to Melbourne for work without the price tag. There’s plenty of economic activity within the town and Qantas has just released news they will be flying out of here to Sydney. Top 20 city by population and yields are strong compared to most capital cities. Need more convincing? Download this article in the Melbourne Herald Sun – Bendigo is so HOT right now. - Outer Melbourne
As Inner and Middle Melbourne have experienced great growth over the last 3 to 5 years, Outer Melbourne gives first home buyers an affordable chance at entering the market and gives investors that sweet spot where the yield is still above 4%. With the city to become Australia’s largest city over the next 20yrs, I see great value in this part of town. - Perth
Been down for some years since the mining boom and vacancy rates have started to come down in a lot of suburbs. We are seeing this market bottom out so it’s a good time to go in and maybe get a discount before the mobs arrive. I would stay within 15km of CBD if you can. Still a quality capital city and a strong hub for all those in the West. - Ballarat
Similar to Bendigo, a stones throw to Melbourne by car or train, Ballarat has affordability and extremely low vacancy rates – vacancy rates under 1%. With the fast train getting you into Melbourne in under an hour, you can still have the country lifestyle and earn city wages if you desire. - Gold Coast
Lack of land availability makes the Gold Coast a commodity. Higher yields than Brisbane also make it attractive for investors but those southerners who are sick of the Sydney hustle and bustle are heading to South East Qld in droves.
Note:
Melbourne: Most populated capital city in the next 10yrs to 20yrs. I see some good growth occurring with first home buyers and the migrating population buying up heavily here already.
Brisbane: If you already have property in Brisbane, keep it and let it do its thing.
Disclaimer: This article should be used as a guide only. It does not take into account your personal circumstances. This article is not intended to be your sole source of information when making a financial decision. It is advised that you consult a professional financial advisor before acting in any way.
I have abbreviated my analysis of each city for a quick overview, if you want the full brief please contact me direct by clicking here. Any other questions? Give me a shout…
Cheers,
John Pidgeon
Head Business and Property Educator
