With the new year looming ahead, you may be asking yourself some questions about your investment properties. How much can I borrow? How do I invest? Where should I put my money?
This last question is one of the most difficult to answer. With so many areas, statistics and opinions about where the growth is going to be this year, it can become extremely confusing about where to invest in. To help you with this, we are looking back on 2015 and considering what suburbs are likely to show increases in the coming year.
First on our list is Kedron, north of the central business district (CBD). Featuring an annual growth of 6.2 per cent for units, this suburb holds the second highest growth in a suburb across the whole of Queensland according to realestate.com.au data. It also outstrips the average growth of Brisbane as a whole, which according to CoreLogic RP data, amounted to an annual growth of 3.97 per cent.
Kedron, Brisbane – houses for rent, units for sale
Kedron is certainly worth an investigation.
If you are looking to buy, then Kedron units may be the place to go in Queensland to take advantage of capital gains.
However, if you are looking for rent, then houses are likely to be more suitable. The median price for a two bedroom house is currently $558,000, and rental demand is 'high', with 912 visits per house over the year according to realestate.com.au. This is lower than the average Brisbane house, which was sitting at $615,000 in the September quarter according to the Real Estate Institute of Queensland (REIQ).
So whether you are looking to take advantage of capital gains or to rent out your property, Kedron is certainly worth an investigation.
Springfield Lakes, Brisbane – diversity of choice
Located 25 kilometres southwest of the Brisbane CBD, Springfield Lakes is likely to prove particularly appealing to first time buyers, according to the Westpac Quarterly Residential Report for October 2015.
Westpac cites the developing local area as a major factor in the appeal for investors. The new railway line means that the suburb is likely to become more attractive as transport becomes easier, while the surrounding suburb has amenities such as a shopping centre, two schools and a recently completed private hospital.
This wide range of appeal means that investors have an equally wide range of potentially profitable properties to pursue.
The local University of South Australia campus means that the area now is likely to draw the eye of university students in addition to new families with school-age children, older residents in need of nearby medical care.
This wide range of appeal means that investors have an equally wide range of potentially profitable properties to pursue. With realestate.com.au reporting a median price for all units as $384,000 and houses at $415,000, this growing suburb can be viable for those on a budget as well.
Burdell, Townsville – outside of Brisbane
Sometimes people get caught up in thinking the capital cities are the only place for property investment. These investors miss out on significant opportunities, such as Burdell in Townsville.
If you're in the market for houses, then this rapidly growing suburb could be the area to invest in for 2016. Boasting a whopping 15.9 per cent annual growth for all houses, this suburb has experienced rapid increases this year, though prices still remain reasonable at $383,000 according to realestate.com.au figures. Make sure to speak to a local finance broker to find out how to take advantage of this enormous growth.
North Shore, Townsville – getting in early
Also located in Townsville, the Westpac report describes how North Shore features "entry-level prices" for first home buyers. Two bedroom properties are the name of the game for this masterplanned new suburb, and it is close to shops, schools, a medical centre and – apt for an area close to the ocean – an aquatic centre.
Definitely a place to look at for your first investment property, particularly if you are a keen fan of watersports! Priced low at $270,000, these homes with 124 square metres of space are perfect for those looking for new development investing.
Pimlico, Townsville – long term growth
The Westpac report for the June Quarter 2015 recommended Pimlico for those seeking long term capital growth, as entry-level prices began in the high $200,000s and are set to increase as the Townsville population grows. Predicted to have a population of 263,870 by 2033 according to the Townsville Council, this population growth will coincide with increased demand for local housing and of course boosts in local housing prices.
For those who want solid returns and are happy to wait out the competition over a long period, Pimlico is a good bet for the patient investors out there.
So there you have it: five Queensland suburbs that are definitely worth investigating for any investor, big or small, or even someone looking to buy their first home that will continue to retain (and grow!) its value. However, this is certainly not an exhaustive list, so you should be sure to speak to your finance broker to find out more about investment loans, insurance comparisons and discover our mortgage repayment calculator.