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:
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[left]
NSW
Bathurst
Blacktown
Goulburn
Gunnedah
Lapstone
Liverpool
Moree
Mudgee
Muswellbrook
Neutral Bay
Penrith
Pyrmont
Richmond
Rosemeadow
San Remo
Seven Hills
Thornleigh
Wickham
QLD
Bowen
Chinchilla
Dysart
Emerald
Gladstone
Moranbah
Oakey
Rockhampton
Roma
Toowoomba
Woolloongabba
[/left]
[right]
WA
Como
Dampier
Fremantle
Greenfields
Halls Head
Leederville
Murdoch
Newman
Port Hedland
South Hedland
VIC
Corio
Frankston
Morwell
Warrnambool
SA
Aldinga Beach
Hackham
Port Adelaide
Port Augusta
Seaford
Whyalla
ACT
Canberra
[/right]
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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.
Lifehacker’s weekly Loaded column looks at better ways to manage (and stop worrying about) your money.
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