Here are the best places to buy a rental property across New South Wales, Victoria, and Queensland in 2022. Is your suburb listed?
The real estate investment market fluctuates regularly. When it comes to buying rental properties, one of the biggest challenges we see investors try to navigate is looking for the best locations to invest in.
Our team, here at Real Estate Investment Finance, are searching daily for the best growth areas for investors. In this article, we’re going to share some of the hottest locations to invest in this year.
These location span across our three most popular States - New South Wales, Victoria, and Queensland. We’ll also share the growth that’s expected to come from these locations and what they can offer property investors.
Investment property locations – New South Wales
New South Wales, particularly, the Sydney real estate market has much to offer investors this year. Last year this region experienced significant property price growth, bringing the median house price to $2 million. Even regional markets across the State of New South Wales were subject to this growth.
The best locations to invest in New South Wales this year are as followed:
Bardwell Park
Bardwell Park is an emerging suburb for Sydney real estate. It’s located about 12km south of Sydney. This location is popular amongst families and older couples. Highlightable factors of Bardwell Park include:
Median house price of $1.6million
Rental house yield – 2.4%
Average price growth of 36.04% in the last five years
Spacious housing
Great schools and parks
Blacktown
Blacktown is located west of Sydney. It’s popular for both investors and owner occupiers. Key highlights of Blacktown include:
Median house price of $810,000
Average rental yields of 2.6%
$5 billion worth of infrastructure developments coming into the region
Narrabeen
Narrabeen is a beachside suburb located north of Sydney. Narrabeen offers great capital growth and high rental income within the Sydney real estate market. It’s an affluent region popular amongst professionals and families. Highpoints include:
Average house price of $3.7million
Average rental income of $1,100 weekly
10.9% compound growth rate of houses in the last five years
Great region for those seeking work/life balance
Woollongong
Woollongong is a coastal area located 82km south of Sydney. This relaxed region is set to become a prime investment hotspot. Woollongong offers a range of amenities for residents.
Median house price of $995,000
$560 p/w rental income
14.5% population growth expected in the next five years
Great location for lifestyle
Port Macquarie
Port Macquarie is on the east coast of New South Wales. It offers relative affordability in comparison to other big cities within the state. It’s a popular location for older couples and families. Key points are:
Average house price of $820,000
Average income of $575 p/w from rental properties
Capital gains in the last 12 months was 21.04%
Location is home to mesmerising beaches
Investment property locations – Victoria
If you’re searching for the most desirable locations to purchase an investment property in Victoria, look no further. Here are our five top picks!
Ashwood
Ashwood is 14km southeast of the Melbourne CBD. It’s popular amongst independent youth and couples, as well as families. Some notable highlights of Ashwood include:
Median house price of $1,365,00
11.9% one-year capital growth
Average rental income of $495 p/w
Crib Point
Crib Point is in Melbourne’s Mornington Peninsular. Residential rental prices are rising within this suburb and house prices are seeing growth. Highlights include:
$800,000 house prices
$465 p/w average rent
Popular amongst established couples and families
Mornington
Mornington is 57km south of the Melbourne CBD. This location is known for its beaches and village atmosphere. Notable factors for this real estate investment hotspot include:
$1.12million median house price
Median weekly rent is $578
10.9% growth rate from 2021 property boom
Mornington is a hub for infrastructure development
Cranbourne
Cranbourne offers relatively affordable properties for first time investors. It’s also fast-producing capital returns. Here are some of its benefits:
Average house price of $620,500
Average rental income of $380 p/w
Infrastructure and services are being developed in region
Geelong
Geelong is a regional location in Victoria. The population of Geelong has significantly increased since the beginning of the pandemic. Highlights of this location include:
Median house price - $952,500
Median rental - $475 p/w
15.91% capital growth for houses in the 12 months to January 2022
Gross rental yield average - 7.65%
Investment property locations – Queensland
If you want to invest in Queensland, there are endless opportunities right now. Particularly for real estate in Brisbane and its surrounds. Brisbane real estate experienced significant growth due to the pandemic and interstate migration. Keep reading to see the best investment hotspots to look out for.
Surfers Paradise
The renowned Surfers Paradise is located on the Gold Coast. This suburb ranked number one in a February 2022 report on the best investment hotspots for units by realestate.com. Here’s why:
Average house price is $1.6million and $480,000 for units
Rental yields are still high at 6.17% for units
Median house prices increased by over 11% last year
Redbank Plains
Redbank Plains is a relatively affordable spot to invest in property (especially for first time investors) within the Southeast Queensland region. It’s a suburb within Ipswich. Here’s what investors should look for:
Affordable houses averaging $400,000
House prices grew 15.63% in 2021
Vast infrastructure projects within location
High rental yields of 5.31%
Southport
This is a great location for the savvy investor to delve into. Southport is also located within the Gold Coast region, and it experienced significant capital growth in 2021. Key highlights include:
Average price growth of 22.18% in 2021
Median house price - $810,000
Median rent per week - $600
Units have an average of 6.17% rental yields
Brisbane
Real estate in Brisbane is performing relatively well and is expected to do so in coming decades. Brisbane experienced great interstate migration in the last two years. With the 2032 Olympics in the next 10 years, there'll be vast infrastructure opportunities arising. Here are some notable highlights that Brisbane offers investors:
Median house price - $722,433
Median unit in the Brisbane CBD is valued at - $519,000
Unit rental yield is high at 5.27%
Annual growth rate to February 2022 is 29.7% and growing
Maroochydore
Maroochydore is located on the Sunshine Coast region. It has renowned beaches. This coastal town is a destination hotspot for travellers. Key highlights of Maroochydore include:
Average house price - $910,250 and $590,000 for units
Rental yield for units averages 5%
Rental income per week is around $615
