Property market analyst Terry Ryder offers his top 20 markets to invest in this year
WONDERING what property market to invest in this year? Here are property market analyst Terry Ryder’s top 20 tips.
WONDERING what property market to invest in this year?
Property analyst Terry Ryder reckons you should look outside the CBD.
He has crunched the numbers on the affordable towns or suburbs to consider investing in this year.
Top of his list is the Sunshine Coast in Queensland. Mr Ryder said it was a great example of an area which was turning its economy from a purely tourism driven one to a more diverse regional centre.
He included areas on the top 20 list where the buy in price was affordable, in regional towns where there is a reasonable prospect of buying for under $250,000 and for a city areas under $350,000.
“Quite often the median price might be higher than that, but there was still plentiful supply of properties in those price ranges, looking at areas that had good prospects for growth his year and beyond,’’ he said.
The one thing the areas all had in common was there was affordable housing, good infrastructure including new infrastructure development and jobs nodes.
“That tends to be a really good simple formula for ongoing price growth,” Mr Ryder said.
“That points us to the more affordable parts of capital cities like Logan City which is prominent on the list for example and also good solid regional centres which tend to be overlooked because a lot of investors seem to have gained the impression you are only going to get big growth if you buy in capital cities.’’
Mr Ryder said the one suburb on his list that people may be surprised about was Salisbury in South Australia.
“It is a particularly down market area of Adelaide.
“A lot of people they choose to live there, because it A, it’s in their price range and B, it’s got other factors like it is close to jobs and the infrastructure is pretty good. It is a part of Adelaide where you can buy houses for less than $200,000.’’
Mr Ryder said one of the things he kept track of was sales volumes as it was often a precursor to price growth.
“Our most recent research for the price predictor index shows suburbs of that part of northern Adelaide and the municipality of Salisbury in particular there is a big upturn in sales activity.
“The Adelaide market generally is rising, it is going to be one of cities alongside of Brisbane that is probably going to show the best growth this year.
Mr Ryder said coastal and lifestyle markets which had embraced change also featured prominently on the list.
He said normally he would not feature markets based primarily on tourism and retirement because they tend to be poor performers.
But Cairns and the Sunshine Coast were contenders this year because there was a significant among of money spent on infrastructure and the local councils were diversifying their local economies.
“They recognise that if they are just going to be reliant totally on tourism it is so volatile a sector and so prone to downturn, if you have got bad weather or a there is a global financial crisis, or international tourism drops off, it is extremely fragile, so they have recognised that.’’