Economists Picks for Best Places to Buy Property in Australia
Posted date: March 28, 2011 | Tags: property hotspots | 2 Comments
The housing market in Australia is on an upswing in the housing cycle. Whether you are considering a home to reside in or a home as an investment and rental property, now is a good time to buy. In some areas housing prices have returned to what they were before the Global Financial Crisis began and further growth is predicted.
There are several reasons why the housing market has improved including:
- The $7000 first time home buyer grant has returned. This one time government incentive for first time home buyers encourages new home ownership.
- There is an increase in 25 – 35 year old first time home buyers. With a younger home buying population, there is a bit less caution, and this is revitalizing the market.
- Confidence in the economy has returned and people are more willing to start buying again.
- In some areas the cost to rent is exceeding the cost to own. So purchasing a home just makes more financial sense.
When purchasing property it is important to buy well. Checking with local real estate agents is a good idea to find out what areas are the most desirable. Look for an area and a property where your investment can grow. If you plan to live in the house, consider if the area will provide what you need as your life changes and family circumstances change and grow. Staying within the median rage of property in the area where you are looking is always a wise choice. Purchase too low and your home could have some resale trouble as it is less desirable. Purchase too high and the resale of your home could be difficult because it will be out of the majority of home buyers price range. The same is true if the property is being purchased for rental. If priced too high or too low you won’t attract the right renters.
Top Picks by State
Some of the picks for best places to buy property in Australia from Economist, Matthew Bell from Australian Property Monitors are:
- Hawthorn, Queensland – This suburb of Brisbane is a great pick because there is tremendous population growth in Brisbane and that is causing a steady demand for property. It is close to the northern bus way, airport link, and Clem 7 tunnel, making it a good choice for travelers and commuters.
- Mentone, Victoria – The population growth in nearby Melbourne will increase the attractiveness of this suburb.
- Mona Vale, New South Wales – One of Sydney’s suburbs, where there is a shortage of rental property, makes this area very desirable. The proximity to the city provides lots of commuting options and is in close location to a fabulous retail area.
- Halls Head, Western Australia – Western Australia is experiencing some of the fastest growth in the housing market. With the Indian ocean bordering this outlying suburb of Perth, it’s great area.
- Thebarton, South Australia – Home buyers will find fantastic purchase prices in this suburb of Adelade.
- Hobart, Tasmania – There are predictions that the housing market will grow overnight in this area in the next few years. Now is a great time to make and investment on this island before property prices start to increase.
According to Bell, Brisbane and Perth are the two best areas to purchase in. With increases in resources and in tourism, both of these areas are are going to be the places to watch in the near future. Now is a good time to consider investing in these areas.