THE TOP 80 INVESTMENT SUBURBS IN AUSTRALIA
6-10% Capital Growth !!!!
You know what they say: Location, location, location! If you’re looking for high capital growth investment properties in Australia, then location is everything. REDA analyses Australia’s leading real estate websites to extract the most lucrative listings based on your filtered search preferences. Find all the best capital growth properties for sale in Australia, conveniently listed and ready to browse. Sign up now for a free 30-day trial.
When you subscribe to REDA, you’ll get access to the top 80 suburbs in Australia based on a capital gain. Once you know the best locations, you’ll be better positioned to search capital growth properties that can generate positive equity and grow your portfolio faster.
We have analysed 20 years worth of historical property price data to determine Australia’s best locations. When it comes to capital growth, history is a strong indicator of future potential. Given the ups and downs of the property market, short-term trends may not clearly illustrate an area’s capital growth potential. That’s why you need a longer term picture to get a clear view of an area’s capital growth trajectory.
WHY INVEST IN CAPITAL GROWTH PROPERTIES?
A capital growth investment strategy involves buying a property that is expected to increase in value over time. In general, properties with the highest capital growth rates will be the ones that appreciate the most in value. The idea is to buy low and sell the property for a profit once the area reaches its full potential.
Another strategy is to invest in renovations or capital works on the property before flipping it for a profit. In this case, it’s the work carried out by the investor that achieves capital growth.
Capital growth properties tend to have higher purchase prices and lower rental yields. This can make the annual costs associated with owning the property more than the rental income, with the difference to be paid out of the property owner’s pocket. However, these properties can be negatively geared, which means that the expenses can be offset by tax benefits. This is in contrast with positively geared property, where the ongoing income you earn from the funding is higher than your ongoing expenses.
Investing for the growth of principal also has the potential to be a lower maintenance contribution. Since you don’t need to rely on tenants to deliver returns on the property, there are much lower maintenance and management costs involved.
With its higher up-front costs and potential lack of rental income, the growth of principal investment is generally recommended for more experienced and better-resourced investors.
REDA TOP TIPS FOR CAPITAL GAIN PROPERTIES
- Look for properties at land value and carry out high-quality renovations to drive capital growth
- Hold the investment for a minimum of 3 years
- Balance your portfolio with cash-flow properties so you’re not relying on your own income to pay for the property, (unless it’s negatively geared)
- Try not to leverage too high. Keep it around 80% and have 10% cash available as a contingency
- Look for low-maintenance properties to reduce upkeep costs
Please note: The historical data for some properties may vary with different websites. Property cycles will vary and change and affect current capital growth rates.
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Sign up for our free 30-day trial today to explore our top 80 suburbs in Australia, unlock all premium features and gain access to our library of property investment resources.
You can also get in touch with our team to find out how you can best take advantage of the REDA platform to find property for your portfolio.
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