Where Are The Property Hotspots To Buy Investment Real Estate In Australia?

Firstly, before I get started and revealed my strategy and picks, I need to add one little disclaimer. The property hot spots I mention are my own personal opinion based on my own local knowledge. The picks could subject to change, because the real estate market is inclined to go in cycles. However, read what I have to say, and then make your own decision based on your own research. I’m sure you’ll find my conclusions interesting and helpful.

Also before we get started I think it is really important for you decide exactly why you are considering purchasing property. If you are buying to live in the property yourself, then you’ll be buying for personal reasons rather than as an investment. Although making a capital gain may be a priority, it won’t necessarily be your only motivating factor. You need to be happy where you live, and you need to buy a property that meets your needs, or the needs of your family.

If you are buying an investment property then you need to consider potential for capital gain and/or investment return on your money. You will need to take the “emotion” out of the decision-making process. You need to research each area and type of property carefully before committing to buy. You need to research the market and investigate what people in the locality want in a property.

  • Do they want car parking, close proximity to employment, schools, transport, shopping?
  • Are buyers, or renters, looking for older style properties, or do they prefer contemporary designs?
  • Do they want yard space or low maintenance?
  • How many bedrooms are people looking for?

You will need to decide whether you are just going to renovate the property, sit on it for future capital gain, or sell it, or rent it out. Each of these factors may have a different bearing on the type of property you buy. There is plenty more to consider, but let’s now look at where to buy property.

Picking Australia’s property hotspots:

Personally, I am inclined to prefer properties close to a growing city or town center, close to new infrastructure, or one that has amazing views. My reasoning is that a city center will always be there, and as long as it is growing in size, there will always be plenty of jobs and amenities nearby. As a city grows, depending on the transport and roading network, properties close to the heart of the city should grow in demand and value. Obviously there are exceptions to the rule, but urban sprawl will generally result in more people having to travel further from home to work.

In the case of Australia, there are several cities large and small that are growing and spreading out. As I said earlier, people generally want to be close to jobs and amenities, so suburbs close to the city center should always be popular. They are usually a good rental proposition depending on the individual property and what it has to offer. Good properties can be found in suburbs close to all the major cities including Sydney, Melbourne, Adelaide, Perth, Canberra and Brisbane.

Using Brisbane (in Queensland) as an example; suburbs like Paddington, Bardon and Ashgrove should always be a wise investment as they are nice hillside neighborhoods very close to the city. Many of the homes are owned by older empty nesters whose children have flown the coop, and they are looking at downsizing, or retiring to the Sunshine Coast. Many of the new buyers and renters looking for properties in these areas are professionals in their 30’s to 40’s. Naturally every property is different, so you need to do your usual due diligence and get termite checks etc.

I mentioned earlier the prospect of buying property with views. The thing about sea, or canal views, is that the view will always be there assuming no-one can build in front of you. So, again, depending on the property, it could be worth exploring this option. Queensland’s Sunshine Coast and The Gold Coast are popular for people looking for a lifestyle change, but again you need to be careful exactly where you buy.

My pick would be the Kawana Waters area on the tropical Sunshine Coast north of Brisbane. Major infrastructure including a new Private Hospital and a $2b Public Hospital are soon to be a reality. It is expected that the Public Hospital alone will have 15,000 visitors a day and around 3,500 permanent jobs. That’s not allowing for the new Town Centre, or the many new associated business ventures, and new Transport Hub for the area. In fact; it has been reported that around $1.25 million will be spent every day, seven days a week for 5 years, developing the Kawana area. You can imagine what that could do to rental demand, rental returns, and potential property values in neighboring suburbs like: Kawana Island, Birtinya, Warana, and Bokarina.

Birtinya is so close residents will be able to walk to work at the new Hospitals or Town Centre. However my pick is Kawana Island, because it’s only a 3 – 4 minute drive away, yet it has a quiet and beautiful canal front lifestyle with around 10k of beautiful walkways. It is a quality location with a mix of modern residential homes and luxury apartments. Kawana Island is already established so there is little, if any, room for further expansion. This is a plus because it means prices should only head up as more and more people discover the lifestyle and handy location.

At the end of the day you need to do your own research and make your own decisions, but I’ve given you my personal thoughts on a couple of options where to invest.