To buy or not to buy?  Pounce or avoid?

This is the question every keen property investor wants to know.  Here are my Top 5 Hotspots and Notspots for 2020 and why!

NOTSPOTS

 

1. DARWIN
   

   Very little population growth and flat housing prices.  Vacancy rates still high.  Economy tracking slowly.

2. SYDNEY
   

   Those who bought in most Sydney suburbs prior to 2014 have done really well.  There is a decline occurring so give it a few years before getting in here.  Note: Roads are also a nightmare.
   

3. BRISBANE
   

   Investors have now started to move in here after witnessing the decline of Sydney.  Already on the move with growth, meaning rental yields are starting to decrease.  This one’s OK if you are an owner occupier wanting to live here.

4. WOLLONGONG
   

   Already seen some great growth and will start to slow as prices become unaffordable (unless a fast train is built in the next 24 months).

5. SMALL REGIONAL CENTRES
   

   I’m talking ‘One horse towns’ (sub 30,000 population).  These towns commonly have high rental yields but may experience high vacancy and little growth.  A lot of these towns also in drought around the country.

 

HOTSPOTS

 

1. BENDIGO
   

   This one is in close proximity to Melbourne for work without the price tag.  There’s plenty of economic activity within the town and Qantas flying out of here to Syney.  Top 20 city by population and yields are strong compared to most capital cities.  5% gross yield not uncommon here.  Top 5 expected population growth increase in Australia over the next 20 years.

   Price range:  Can easily find something solid in the $300,000 to $500,000 price range

2. SUNSHINE COAST
   

   With over 12% population growth over the last 5 years, this region is expanding like crazy.  A new $2 billion Hospital that is still expanding, one of Australia’s fastest growing Universities and Shine Coast Airport expansion all lead to more jobs, improved economy and overall great place to work and live considering the weather and lifestyle that it offers.  Close to these facilities ae my thoughts for yields and performance.

   Price range:  $500,000 +

3. PERTH
   

   Been down for some years since the mining boom and vacancy rates have started to come down in a lot of suburbs.  We are seeing this market starting to bottom out so it’s a good time to go in and maybe get a discount before the mobs arrive.  I would stay within 10km of CBD if you can.   Still a quality capital city and a strong hub for all those in the West.

   Price range:  $600,000 +

4. BALLARAT
   

   Similar to Bendigo, a stones throw to Melbourne by car or train, Ballarat has affordability and extremely low vacancy rates – vacancy rates under 1%.  With the fast train getting you into Melbourne in under an hour, you can still have the country lifestyle and earn city wages if you desire.

   Price range:  Can easily find something solid in the $350,000 to $500,000

5. GOLD COAST
   

   Lack of land availability makes the Gold Coast a commodity.  Higher yields than Brisbane also make it attractive for investors but those southerners who are sick of the Sydney hustle and bustle are heading to South East Qld in droves.

   Price range:  $500,000 +

WORTH NOTING

Brisbane:  If you already have property in Brisbane, keep it and let it do its thing.

Holiday destinations:  Smaller sub 10,000 population areas specifically.

2020 List:  Some remain from the 2019 list as property doesn’t make overnight shifts like some proclaimed property experts think.

 

Disclaimer:  This article should be used as a guide only.  It does not take into account your personal circumstances.  This article is not intended to be your sole source of information when making a financial decision.  It is advised that you consult a professional financial advisor before acting in any way.