We can all agree that Aussie property prices at the moment are pretty cooked. As a result, most of us probably won’t bother trying to get on the ladder and instead, focus on other investments.
But that doesn’t mean it’s a bad investment, it’s just a little harder to crack. The market has definitely slowed, but it’s still increasing overall and if you manage to buy cheap, you stand to make some decent returns.
Whether you’re looking to live in your own home or use it as an investment, here’s some suburbs around Melbourne and Sydney to keep an eye on if you’re not a total cynic about owning property one day. Some are a little pricier than others, so we’re not saying you can just waltz into the market and pick one up, but they’re definitely places worth saving for.
Sutherland, NSW
With a median house price of $1.185 million, Sutherland is 22km south of the Sydney CBD. While that doesn’t sound the best for those hoping to be close to the city, there’s often express trains from the station that’ll zip you right there.
The suburb is also close to the massive Westfield Miranda and beyond that, the popular Cronulla beach, so there’s plenty in the area to keep you busy.
If you’re looking to invest, Sutherland has an average annual growth of 8.92% and a weekly median advertised rent of $620 for houses and $460 for units. In terms of the latter, the median price of a unit in the suburb is $655,000. There’s a ton of new developments planned, as well, like this one below.
Arncliffe, NSW
Over the past year, Arncliffe has seen a median house price increase of 13.04%, currently sitting at $1.3 million. Certainly a little more pricey than old Willmot, but situated just 11km south of the CBD will make getting to work in the city far easier.
According to Your Investment Property, folks looking for a bargain in the area should be looking to shave 3.43 percent of the asking price of the property, which they say is the average discount being achieved right now.
If you’re not fussed on a house, Arncliffe has a median unit price of $731,000 with a weekly median advertised rent of $590. It’s also hella close to the airport, but maybe not as close as the next suburb.
There’s some decent views to be had from some of the suburb’s units, too.
Mascot, NSW
Yep, Mascot is the perfect suburb for those who travel frequently for work or otherwise, as it houses Sydney’s domestic and international airports. It’s also a mere 7km from the CBD and has a median house price of $1.41 million, but a unit is probably more what you’re after here.
Because there’s been a huge increase in the number of units in the suburb, the supply has driven prices down by 6 percent ($845,000 median price), but tipped to recover. If you’re looking for somewhere close to the city that’s expected to make some solid returns, suss out Mascot.
Newport, NSW
According to Your Investment Property, “if you compare the increase in value of investment property in Newport, 2106 to the rest of Australia, it performed very well.” It certainly did – over the past year, the suburb has seen median house prices rise by 21.96 percent.
We’re talking the high end of the spectrum here folks, with a median house price of $1.95 million, but units are a little easier on the bank at $850,000.
Sitting 31km north of the Sydney CBD, this is a suburb for those who dig the beach life while maintaining a decent proximity to the city.
Pascoe Vale, VIC
Sitting 10km north of the Melbourne CBD, Pascoe Vale has a median house price of $816,500 and a median unit price of $540,000. Its proximity to the city and affordable prices makes it a great location for first home buyers.
But it’s also ripe for investing, too, with an average annual growth of 8.34% and a weekly median advertised rent of $400.
There’s some damn schmick looking houses getting around Pascoe Vale, like this one on Cumberland Road that’s going to auction.
Geelong, VIC
Apart from being pretty damn affordable, Cotton On‘s HQ resides in Geelong and is attracting thousands of its employees to the up-and-coming suburb.
This one’s a little further from the Melbourne CBD (75km), but with a median house price of $618,000 and a median unit price of $347,000, it’s becoming quite a desirable place to settle down. Not only that, Geelong West is in the top 30 percent of Victorian suburbs when comparing median price capital growth over the last 12 months.
“Geelong West gave property investors a good capital gain figure when compared to the rest of the state, with 17.71%,” writes Your Investment Property.
They also say sellers in Geelong West “are currently offering property investors an average price cut of -3.59% below the asking price at the moment.” So if you are interested, it’s not a bad time to jump in.
Heidelberg, VIC
Close to the hotspots of Thornbury and Northcote, Heidelberg is considered a huge growth suburb. It has a median house price of $1.192 million and a median unit price of $592,000.
Just 11.6km from the Melbourne CBD, it’s the perfect place for those who work in the city and enjoy being close to popular locations.
Your Investment Property says “sellers in Heidelberg itself are offering an average vendor discount of -3.30% to real estate investors,” so even if you’re looking purely to invest, you could get yourself a great deal.
Croydon, VIC
Located 27km east of the Melbourne CBD, Croydon has a median house price of $752,714 and a median unit price of $510,000. It’s close to a number of popular shopping destinations as well as Swinburne Tafe.
It’s certainly more affordable that Heidelberg, but if you’re willing to travel the extra distance to the city, it’s definitely worth the savings.
At the end of the day, whether you’re looking to buy a place to live or just to invest, it pays to do your research. These suburbs certainly aren’t for everyone, but worth aspiring to. If you reckon you’re ready to buy or just wanna chat to someone who can help, the good folks at Bendigo Bank would be stoked to give you some advice.
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