Revealed: The best suburbs to invest in property in your state right now

Looking to beat the double whammy of rising costs and rental regulations? Here are 20 suburbs to invest in property.

A property analyst has suggested 20 suburbs across the country to invest in property.

INVESTORS looking to beat the double whammy of rising costs and rental regulations should look to 20 key suburbs to buy property, an analyst suggests.

Property advisory Hello Haus has identified a number of locations across the country where investment property performance is set to outwit cost increases, ranging from regional cities in Queensland to port-side suburbs in Adelaide.

This two-bedroom house at 4 Jobs Gully Rd, California Gully, is on the market for $450,000 - $495,000.

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And buy-in prices are affordable, starting as low as $152,500, which is the median house price in the Bendigo suburb of California Gully in Victoria, where the median gross rental yield is 4.5 per cent.

“Regional suburbs away from the heart of Melbourne are the way to go,” Hello Haus head of research Sam Powell said. “Rental returns are strong but so are the fundamentals that drive capital gains.

Hello Haus head of research Sam Powell. Image supplied.

“Wodonga is a great example. Along with excellent metrics in terms of median rental yield

and low vacancy, Wodonga is a fast-growing regional. Its economic base is also diverse

across agriculture and manufacturing.”

In the Rockhampton suburb of Frenchville, it is possible to buy a house for around $400,000 and achieve an attractive yield of more than 6 per cent.

Housing in Wodonga, Victoria.

“Queensland is full of opportunity for investors right now with high interstate migration,

relative affordability, great infrastructure plans and, of course, the 2032 Olympics to look

forward to,” Mr Powell said.

“Agriculture and mining centres are foundational among my picks with suburbs in

Toowoomba, Townsville and Rockhampton on the list.”

Even in NSW, there are affordable options for investors, with the median house price in West Albury still an attainable $472,500, according to PropTrack, with an average 5 per cent return.

This three-bedroom house at 194 Mccullough St, Frenchville, is on the market for offers over $399,000.

“Many investors mistakenly believe property options in NSW will be beyond

their budget, but our analysis proves this wrong,” Mr Powell said.

“The four locations we’ve identified meet our criteria, but I particularly like Cardiff South as

an option. Cardiff South’s position just 10km from the Newcastle CBD means ready access to

one of the state’s most active regional centres. At its median price, you can purchase a solid,

second-hand detached home on 700-plus square metres of land.”

Mr Powell said interest rate rises and inflation had seen many property investors rely purely on rental returns when it came to choosing an investment property.

Housing in Rockhampton, which has been identified as a good place to invest in property.

“Rate rises have resulted in more and more investors seeking only cash flow-positive

properties to cover rising holding costs, but this is a flawed and dangerous approach to

investing,” Mr Powell said.

“You should definitely select locations that have above-average rental returns, but you must

also seek superior capital growth potential. The third element is choosing the right asset in

those chosen suburbs — a task made easier by working with an advisor.”

Mr Powell analysed data across five major states to unearth suburbs with the best prospects

for beating rising costs and delivering long-term value gains.

This five-bedroom house at 73 Jacaranda St, West Albury, is on the market for $475,000.

“I’ve identified suburbs with relatively affordable buy-in prices, above average gross yields

and vacancy rates below 1.6 per cent,” he said.

“I also looked for areas with qualitative upside such as a strengthening economic base, a

growing population and/or easy access to major centres and solid infrastructure investment.

“These locations are my picks for investors wanting to build wealth while mitigating the

stress of having adequate cash flow to hold their property over the long term.”

The latest lending indicators data for June from the Australian Bureau of Statistics shows new investor loans have plummeted by 20.9 per cent in the past 12 months.

This three-bedroom house at 18 Tandana Court, Happy Valley, is on the market for $535,000 - $575,000.

Inspire Realty property investment advisor Colin Lee said investors were fleeing the market at a time when housing supply was at critical lows.

“While people are calling for our leaders to fix the rental market problem, they don’t have

the capacity to build affordable housing,” Mr Lee said. “Instead, they need to encourage private investment to pick up the slack.

“Around 90 per cent of all rental accommodation is already provided by everyday
Aussie investors.”

This three-bedroom house at 22 Amity Circuit, Shoalwater, is on the market for $549,000.

20 SUBURBS TO INVEST IN PROPERTY, ACCORDING TO HELLO HAUS

Originally published as Revealed: The best suburbs to invest in property in your state right now