Rising interest rates are taking a toll on those looking to buy a property but that doesn’t mean there aren't great opportunities out there in certain suburbs.
New research commissioned by Well Money (formerly known as Well Home Loans) has identified the top investment-grade suburbs in Australia where buyers have a negotiating advantage.
The research began by considering every suburb in Australia, before filtering out suburbs:
That weren’t investment-grade
Where demand had not been falling
Where prices had not increased by at least 70 per cent over the past decade
That left a small list of investment-grade suburbs where conditions were starting to favour buyers, and where investors knew they had plenty of bargaining power, the report said.
Well Money CEO Scott Spencer said some investors may be sitting on the sidelines amid uncertainty over interest rates and inflation, so the research wanted to identify locations where they could buy with confidence.
“Every one of these suburbs has enjoyed a net price gain of at least 107 per cent over the past decade,” Spencer said.
“Furthermore, they all have a vacancy rate under 1.5 per cent. So the data suggests these are locations that would be easy for investors to rent out right now and would probably enjoy strong capital growth over the long term.”
Spencer said buyers also had the advantage in these areas because of falling demand, but it was still important to consider whether or not you could afford the property in the current environment.
“It’s important for investors to carefully examine their financial position before taking action, because it’s risky to buy if you’re not confident you could repay a mortgage if interest rates were to continue to rise,” Spencer said.
“For those investors who are financially secure, these suburbs are worth considering as possible locations in which to invest.”
Top suburbs where buyers have the advantage
St Huberts Island, NSW 2257
Empire Bay, NSW 2257
Tugun, QLD 4224
Currumbin Waters, QLD 4223
Woongarrah, NSW 2259
Twin Waters, QLD 4564
Horningsea Park, NSW 2171
Bilambil Heights, NSW 2486
Winmalee, NSW 2777
Hobart, TAS 7000
Albion Park, NSW 2527
Ropes Crossing, NSW 2760
Dee Why, NSW 2099
Marong, VIC 3515
Cooranbong , NSW 2265
Prestons, NSW 2170