Generous tax concessions and a widespread belief that investing in property is the safest choice mean that owning a rental property is a popular choice for Australians. But where should you buy a house to get the best returns?
Picture by Nadia308
In its February issue, Smart Property Investment identifies the 50 suburbs which it says offer the best returns for investors in Australia. More than a third of the identified suburbs in its Fast 50 list are located in NSW. At the other end of the spectrum, nowhere in Tasmania or the Northern Territory made the list. Factors considered by the magazine included population, income levels, current rents and potential for future growth.
Here's the full list, sorted by state:
QLD Bowen Chinchilla Dysart Emerald Gladstone Moranbah Oakey Rockhampton Roma Toowoomba Woolloongabba
VIC Corio Frankston Morwell Warrnambool
SA Aldinga Beach Hackham Port Adelaide Port Augusta Seaford Whyalla
The magazine's editor Phillip Tarrant notes that having the right suburb is only the start of the process:
Capital growth is no longer a given when it comes to investing in real estate, but that's not to say it's not achievable either. We're moving into a new era for property in Australia and investors will need to do their homework and buy strategically in order to secure the best returns.
While there are frequent suggestions that Australians should take a broader approach to investment, property remains a popular choice because of negative gearing rules. According to the Australian Bureau of Statistics, 21 per cent of Australians have a second property. Got your own view on investing in any of the suburbs on the list? Share your thoughts in the comments.
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