Suburbs near our major racecourses could be just the right place to take an investment punt
DID you win big on the Melbourne Cup this week? If you won enough for a deposit, check out the best property investment options around racecourses.
DID you win big on the Melbourne Cup this week? If you won enough for a deposit, check out the best property investment options around racecourses.
According to Lachlan Walker of Place Advisory, suburbs near the major racecourses in Brisbane have a lot of potential.
Tenders are already out for part of the Eagle Farm Racecourse to be redeveloped. It could be transformed into a residential hub with towers up to 15-storeys high and with up to 2000 units.
REAL ESTATE SALE OF THE DECADE
Mr Walker said it was planned as a mixed-use precinct so the surrounding suburbs would benefit from the rejuvenation of the precinct.
He tips the Northshore Hamilton area and nearby Nundah, which are both already undergoing rejuvenation, as good investment prospects.
Hamilton has a median unit price of $515,000 and a ten-year growth rate of 6.1 per cent a year.
“Hamilton is one of Brisbane’s leading retail and entertainment centres, developing into one of the pre-eminent inner city locations,’’ Mr Walker said.
It already has the Racecourse Road restaurant and retail precinct and Hamilton Harbour residential development plus Portside Wharf, which has restaurants, shopping and the cruise ship terminal.
“With Portside and Hamilton Harbour continuing to develop, the retail element in Hamilton is expected to expand significantly,’’ Mr Walker said.
Nundah has a median unit price of $418,000 and a ten year growth rate of 7.3 per cent per year.
“When considering Nundah’s household structure, it is recognisable that the area tends to attract younger couples as opposed to families,’’ Mr Walker said.
Of all dwellings in the suburb 54 per cent are rented.
Damian Collins, managing director of property consultants Momentum Wealth, said Ascot and Rivervale in Perth are the major racecourse suburbs.
He said Ascot was an area which had historically been only considered for buyers with interests in horses.
“In the last decade housing diversity has occurred, with the construction of a marina and new housing on Freshwater Lake as well as new estates nearby the Perth Domestic Airport,’’ he said.
“The best value for investment in the suburb is the older housing with a residential zoning, with much of the land zoned for stables making it unsuitable for most investors.’’
Mr Collins said the older houses offered greater value in the land.
“With Ascot’s proximity to the river foreshore, the Perth Airport and the Perth CBD, it makes it a prime spot for investment and increasing property values.’’
He also highlights Rivervale just south of the Burswood Peninsula with the Belmont Racecourse.
“(It) is a prime spot for property investment,’’ he said.
“The northern pocket of the suburb is currently under major redevelopment with the construction of the Springs.
“The best investment opportunities in the suburb are in the suburban zone where properties with land content are still available at reasonable prices.’’
“Given its proximity to the CBD and surrounding amenities, it has solid long term capital growth prospects,’’ he said.
CEO of WBP Property Greville Pabst said in Victoria, Caulfield, Flemington and Kensington were suburbs close to racecourses that were popular both with investors and renters.
“All three have strong capital growth,’’ he said.
“Flemington and Kensington are popular as they are very close to the city (in the inner ring), offer larger blocks than some other inner ring suburbs, have a good cafe culture and the housing is predominantly the desirable Victorian and Edwardian style.’’
Kensington has a median house price of $704,000 and median unit price of $440,000 which the median rent is $490 a week for a house and $380 a week for a unit.
In Flemington the median house price is $730,000 and median rent is $460 a week. The median unit price is $345,250 and median rent is $320 a week.
Mr Pabst said Caulfield was popular because of its leafy streets, large blocks, strong community vibe and closeness to the CBD and the beach.
“Caulfield predominantly has California bungalows to mid-century houses and handsome Edwardians, with good-sized gardens,’’ he said.
Property Professor, Peter Koulizos, said there was only one racecourse left in Adelaide and that was at Morphettville, about 8km south west of the CBD.
He said the suburb was a sought after area of Adelaide for a number of reasons including its closeness to Glenelg beaches and easy access to the city.
A tram line runs alongside the racecourse and provides good public transport access to the city as well.
“Due to the location of the racecourse, a number of adjacent suburbs offer some great investment opportunities for those chasing capital growth,’’ he said.
Glenelg East
“As the name suggests, it is close to Glenelg. Many people aspire to live in the beach side suburb of Glenelg but can’t afford to and Glenelg East is seen as a more affordable option.’’
Mr Koulizos said it was popular for its 1920 bungalows.
“The best opportunities lie in buying one of these bungalows or if this is out of your price range, a 1960s built unit offers great value for money with rental yields of over 6 per cent.’’
Glengowrie
Glengowrie is to the south west of the racecourse. This suburb was developed just after World War 2 and many of the homes are now past their use by date so developers are demolishing them to build two new homes.
“The best prospects for those wishing to make some short term profit are to buy one of these old homes on a block of land which is large and wide enough to subdivide.’’
Morphettville
“In the past, this suburb has been overlooked due to its high concentration of poor quality housing, however, due to its position between the city and the sea and its relatively low entry price, this suburb is very popular with developers, investors and first home buyers,’’ he said.
“The urban regeneration that is taking place is lifting the whole profile of the suburb and with it, the property prices.’’
Mr Koulizos said 1950s houses were being demolished and replaced with two-storey townhouses.
“Not only does Morphettville offer punters great opportunities but investors might want to try their luck on buying property in one of these suburbs.’’
Gavin McPherson of Oasis Property said in New South Wales, Clovelly near the Randwick Racecourse was a strong performer.
“Waverley council has a population growth rate of a mere 3.84 per cent against the Australian average of 8.64 per cent,’’ he said.
“With this anti-development bias, one needs to consider the above trend capital growth that derives from this demographic phenomenon.’’
Mr McPherson said surrounding suburbs that perform well included Bronte, Waverley, Queens Park and Centennial Park.
“We do however suggest steering clear of university centric domains such as Kensington and over developed parts of Randwick.’’
Mr McPherson said he wouldn’t recommend suburbs around Rosehill Racecourse for capital growth.
“Examples of these poor performing suburbs include Rosehill, Rydalmere, Parramatta, Silverwater, Rhodes and Newington,’’ he said.
“However, Ermington and Melrose Park are two suburbs that we expect to outperform its peers, again given their anti-development bias but still feature with great proximity to amenities and water.’’