The Best Places to Buy Investment Properties in Australia

Understanding where the best investment properties in Australia are requires identifying the areas with the highest purchasing demand from owner-occupiers and investors.

 

To find these properties, you need an understanding of the location attributes that are most appealing to property owners.

 

The best way to do this is to conduct a supply and demand analysis starting with why investors love property so much.

 

The Permanency of Property

​

Investors love real estate because it’s permanent.

 

You can alter the land, i.e. you can turn a forest into farmland and farmland into a desert.

 

But no matter what you do to land, it’s still there.

 

Therefore, land has a value that cannot be erased like stocks, bonds and cash.

 

Land has real value because its supply is fixed and it lasts forever.

 

Competition for Land is Always Increasing

 

Whilst the supply of land is fixed, the number of people on the planet is constantly growing, so competition for land is always increasing.

 

Therefore, as time passes, land becomes relatively more scarce.

 

And this increasing scarcity leads to the increasing price of land in real terms.

 

That’s why real estate is the only asset class that has real, long-lasting value, and why investors love real estate.

 

The Most Desirable Real Estate is in the Cities

 

Most people want to live close to where there are good jobs, schools, infrastructure, medical facilities, entertainment etc.

 

Most of these opportunities and facilities are in cities.

 

Within cities, the location of the most desirable jobs and facilities etc. are in the CBD (Central

Business District) and the suburbs immediately surrounding it.

 

This is why properties close to city centres generally attract the greatest interest from owner-occupiers and investors, and enjoy the highest capital gains.

Which Cities?

​

According to the 2021 Australian census data, 80% of Australians (20.1 million) live in 19 cities, and  67% live in a state or territory capital. 

 

Therefore, these are the cities that offer the property investor the greatest potential for yield and capital gain.

 

The largest cities in Australia are growing because they have multiple economic drivers, a growing GDP and a growing median income.

 

However, not every inner-city property makes for a great investment property.

​

The property needs to be in a good location and it needs to be well-priced given the projected rental income.

 

When all of these attributes come together to provide the investor with positive cash flows in suburbs that have traditionally enjoyed good capital gains, the property investor will be able to buy multiple properties over time and become wealthy.

 

Next Steps

 

As a beginner investor, you can choose to take a property investing course, engage a buyer’s agent to find and help you buy an investment-grade property, or go it alone.

 

A property investment course will elevate your investing skills to a professional level, however, you will need the time and commitment to achieve this.

 

A buyer’s agent will save you time, money and effort, and will set you on the path to wealth more quickly.

 

Going out on your own is the cheapest way forward, however, it may also be the most costly if you buy poorly.

 

The choice is yours.

​

Precision Properties Australia specialise in providing property investment education, buyer's advocacy, holiday letting property management and we are qualified property investment advisors.

 

If you would like help with either of these areas, please follow the links above to find out more.

 

You will also have the opportunity to book a free, no-obligation chat to see if we are a good fit.

 

Happy investing.