Hello, I am wondering what part of Australia would be best to invest into with property? I would like to buy a holiday home in a good area and near amenities but where would you recommend? I want an area that will have financial growth and is up and coming in Australia? I hope someone can help?
thanks andy66
hi there, not sure about what is the best in Australia.
We purchased a beach house approx 1 year ago, one street back from beach and that has gone up 47% over last 12 months. The area “Madora Bay”, WA.Cheers
Hi Andy,
Sorry but you will need to be more specific as there are huge differences in prices and returns across the coastal areas of Australia.
The ‘chosen’ area will be determined by these factors and importantly also by your budget.
At the moment rental returns in Melbourne and Sydney are on the low side whereas Brisbane and Perth are still OK – not flash but OK.
The population growth areas in Australia at the moment are SEQ and to a lesser extent Perth – if you preferring to stick to city areas. Bear in mid these properties are likely to be negative cashflow and as such the taxation agreement between Australia and ‘home’ will determine whether or not these areas are economically viable for you.
Another consideration is whether or not you are wanting ot live in this property upon your return.
Derek
Thanks Derek and Marissa for your useful information, I live in the UK but we already have an holiday home in Spain, but we are looking further afield because the property prices in Europe have gone rediculously expensive! So we thought of South Africa or Australia. I have been all across Australia and loved the country! but I liked Perth and Brisbane coastal areas the best! I have been doing some research for my budget of upto A$200000 which I think would buy me a suitable property in either location. But after scourng the endless real estate websites I have found that I get alot more property for my money on the west coast than the east coast.But will these prices rise better than Queensland? This is really what I would like to know! My gut feeling would be to invest in WA because I think this area has the best potential for growth but does anyone think the same as me? You see the property would need to be buy to let!
So if anyone can help me more or give me some more advice please do!
thanks Andy66
Hey Andy,
hhmmm…UK hey…
it seems you are looking for capital growth and not positive cashflow…a suggestion would be to purchase a block of land in a good area and build a holiday home on it…you can call agents and ask them about land – but from my researching, these are alot harder to let out than homes or units in the country…hence the term ‘holiday’
if its positive cashflow you are after, then thats different – i just found a unit in a holiday resort that the managers rent out and has good returns…WA does seem like its booming…thats all I can help.
Kind Regards,
George.If You never never ask, you’ll never never know”
Hi Andy,
Perth and Brisbane are OK. But for the property that you are describing I don’t know how you could go past Cairns. I just found a 4 bed 3 bath 6 year old house in a good suburb that will rent for over 7% gross on a long term unfurnished basis. It only cost a little over 200K, the vacancy rate is negligible and there is excess demand for owner occ and rental properties alike.
But more importantly you have the Barrier Reef, Daintree Rainforrest, Tully River and the best big black marlin fishing in the world.
You could furnish the place and rent it from August to March for 10% and spend the other months in Cairns when the skies are blue, water calm and temp is 25 – 30 Deg.
Hi Andy,
Over the past 20 years Brisbane has experienced an average growth rate of around 6.2% and Perth 5.08% in average median prices.
Both areas represent good investment choices if you have a long term focus. Brisbane has an advantage in that the wider rental market vacancy rate is about half of Perth’s current vacancy rate.
Having said that there are some areas in Perth with extremely low vacancy rates and these areas have no difficulty finding tenants.
I do have some Perth property commentary if you wish to read it. PM me and I’ll forward it to you.
In addition there are some good growth figures being experienced in the north Queensland coastal cities that would be worth looking at too.
My comment would be that a long term rental, as distinct from holiday rental, would give you greater sleep at night.
Derek
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