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Where to purchase property depending on what kind of buyer you are

Left: Melbourne, Carlton; Right: MONA art gallery, which sits in the Tasmanian suburb of Glenorchy. (Source: Getty)

If you’re looking to buy, the property you purchase will largely depend on whether you intend to live in the house, or if you’re looking to snap up a new investment.

And while both investors and home owner-occupiers are looking for a great deal, there are differences in the property they’re seeking, according to Upside Realty director James Kirkland.

For instance, investors will be looking more objectively at the factors that might make a property good value as well as considering potential tax advantages, while owner-occupiers might place more emphasis on the location, surrounding amenities and lifestyle.

“Buying a house to live in is one of the biggest decisions ever made, so it’s important to choose a property that offers a good balance between growth potential and liveability,” said Kirkland.

But that doesn’t mean they aren’t looking at the asset as some kind of investment. “Ideally, owner-occupiers will choose a suburb that’s within their budget but also has enough demand if they  decide to rent it out or sell it.”

Depending on what kind of buyer you are, these are Kirkland’s picks of the best suburbs to find property among some of Australia’s popular capital cities:

Sydney

If you’re an owner-occupier…

Look towards Blacktown, said Kirkland, adding that this western Sydney suburb has seen “substantial growth” in the last few years and the trend is set to continue.

“The suburb is well known for its multiculturalism and local attractions, making it a great choice for young families,” he said.

The suburb also has the benefit of the new Metro Northwest line, making travel convenient for Blacktown residents. The area also falls under the government’s First Home Loan Deposit Scheme.

If you're an investor…

The eastern suburbs of Eastlakes will provide impressive rental yields for the property investor here, with the lowest median unit price ($587,793) for a suburb within 10km of the CBD.

“With its proximity to the city and a sizable price differential between it and surrounding suburbs there is certainly room for it to grow,” Kirkland said.

Kitchen and bathroom renovations to older buildings can also add a lot of value to property, he added.

 Melbourne

If you’re an owner-occupier…

Look for a home in Footscray, which makes it in the top five list of Melbourne suburbs within 10km of the CBD with the lowest median house price at $900,000.

“A new Footscray Hospital  has been proposed and expected to open in 2025, with the potential to transform Footscray into a bustling health and education hub,” Kirkland added.

Aerial view from Carlton, looking south-west to Melbourne CBD. (Source: Getty)

If you’re an investor…

Carlton is a popular choice and is often referred to as the best inner-city suburb, and is populated by young professionals, couples and students. It also boasts a vibrant lifestyle, with several dining options, entertainment, and great walkability with the CBD just a five minute walk away.

“Carlton topped the list for lowest median unit value in Melbourne 2019 at $364,918, whilst also generating the highest yield rental return at 7.1 per cent,” said Kirkland.

Brisbane

If you’re an owner-occupier…

The suburb of Stafford Heights sits very close to the heart of Brisbane’s CBD. With a high volume of turnover, home buyers here will be able to nab themselves a good deal as the suburb is ranked 6th for lowest median house value.

If you’re an investor…

Kirkland described Spring Hill as a “prime location” for investors, with the old residential neighbourhood generating the highest rental yield in the city at 6.9 per cent.

“Spring Hill sits on the cusp of Brisbane CBD with ample cafes, restaurants, nightlife, parks and shops,” said Kirkland, adding it’s “a suburb that always seems to have something going on”.

Adelaide

If you’re an owner-occupier…

Gulfview Heights is a family-friendly area, loved for its generous blocks, great parks and good schools, the Upside CEO told Yahoo Finance.

“The median house price in Gulfview Park is around $500,000, but has already seen a slight increase since the end of 2019. It is also showing a 20 per cent 12 month growth.”

If you’re an investor…

Look towards North Adelaide’s Klemzig, which has the lowest median value in the city for units within 10km of Adelaide’s CBD. And according to CoreLogic data, it’s also in the top 10 for the city’s highest rental yield, according to CoreLogic data.

Perth

If you’re an owner-occupier...

Osborne Park will be one for beach-lovers, as it’s just a two-minute drive from the beach and also a 10-minute drive to the city.

“Osborne Park ranks nationally for the lowest median value for a unit within 10km of a capital city at around $239,000,” said Kirkland.

If you’re an investor...

Kelmscott is the third-rankest suburb for lowest median value of units in Perth, at just $209,000 – but it makes a good investment as it finds itself in the top 10 highest gross rental yield in the western Australian city.

Hobart

MONA Museum, on Tasmania's suburb of Glenorchy. (Source: Getty)

If you’re an owner-occupier...

Glenorchy is Tasmania’s fourth-largest city and is just 7km away from Hobart’s CBD. The suburb is home to the island’s most famous art gallery, MONA, and is becoming known for its arts scene with help of GASP!, the Glenorchy Art and Sculpture Park. It’s also resplendent with parks that are great for mountain biking.

It also has high turnover, and has homes for median values of $381,000 and units for $301,000 – and gross rental yields of 6.7 per cent.

If you’re an investor...

Risdon Vale is popular among families and sits between two great shopping suburbs of Glenorchy and Rosny.

“Nationally ranked as the top region for lowest median value house within 10km of the capital city, Risdon Vale has very high rental yields of above 7 per cent with the greatest 12 month change in property values of 10.9 per cent,” said Kirkland.

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