City, Suburb, Coastal, or Country - Where is the Right Investment For You?

Owning property has long been referred to as the ‘Great Australian Dream’ and for good reason. It’s a relatively stable, secure investment that has the potential to build financial freedom for you and your family. And whether you choose to invest in the city, suburbs, coast or country areas, you really can’t go wrong! While inflation and interest rate rises may be the talk of the town, over the long term, capital gains are still there to be had (housing fulfils a basic human need, after all), and savvy investors aren’t being deterred. So, whether it’s your first time investing, or your third, here’s why investing in property in the city, suburbs, coast, or country remains a solid investment move.

 

Property investment pros

While new investment opportunities like cryptocurrencies and NFTs have arrived on the scene relatively recently, property still reigns supreme. It’s more popular than investing in shares and thanks to various government schemes and grants available to assist first-home buyers, it’s become more accessible. Here are six unbeatable reasons to invest in property:

1. Security – property prices rarely decline over the long term, which is why banks often lend 80% of the purchase price. It’s a secure investment that can open the door to further investments over time.
2. A step on the ladder – an investment property can provide a steppingstone to build equity and work your way towards a dream home in a dream suburb.
3. Financial freedom – property is a significant source of wealth for Australia’s top earners, and it can be for you too. It’s a long-term investment that can provide future financial freedom.
4. Add value – there’s nothing like having a place you can call your own. And because it’s your own, you can add value through a lick of paint, renovations, extensions, or even adding a minor dwelling (if permitted).
5. Tax benefits – property investment comes with tax benefits – particularly if you’re buying a new home or planning to rent it out.
6. Stop paying someone else’s mortgage – if you’re renting, you’re likely paying someone else’s mortgage – it’s money you’ll never see again that could be going towards your own home.

 

City Certainty

With established transport links, a diverse economy, employment opportunities and amenities on the doorstep, housing within metro locations is always in demand. And choosing a more compact home like a townhouse or apartment can often mean a more affordable price tag for first-time investors, limited maintenance woes and increased security (if it’s within an apartment block).

While rental vacancies are generally low within bustling metro areas, capital gains are often where investors see the most significant returns. This can provide investors with leverage to buy another property, the opportunity to take a step up on the property ladder or take a step towards financial freedom.

 

Soaring suburbs

If the city’s not for you and rural property is a step too far, suburban housing investment opportunities are plentiful. Suburbs located moments from main metros can be pricey, but it pays to hunt around for ‘the worst house in the best street’ opportunities before ruling the option out. Alternatively, set your sights a little further afield and look at new developments or homes located on the outskirts of these.

Master-planned developments come with an array of housing options to suit different budgets, stamp duty savings (as you’ll typically only pay stamp duty on the land), tax benefits through depreciation associated with a new build, and building warranties. This makes them an appealing option for investors, and the meticulously planned neighbourhood and easy living on offer are a drawcard for families looking to rent.

Growth corridors are often full of suburban investment potential – here’s where to find them.

 

Count on coast and country

The rise in remote work means many Australians are no longer tied to a specific location for employment. As a result, sea and tree changes have become viable options well before retirement, and coast and country properties have increased in appeal.

While coastal towns have seen significant growth over the last few years, as an investor, it’s essential to look to locations with a steady population over an influx of visitors over holiday periods. While seasonal locations can still generate strong returns, often, long-term ongoing tenancies come out on top.

And while the country lifestyle may not be for you, remember you can always buy an investment property while continuing to rent in the city.

 

Property and time lead to investment returns
Investing in property and reaping solid returns takes time, research, and patience. We firmly believe there are always opportunities to be had; it’s just a matter of understanding your goals and which type of investment best suits your circumstances.

First National Port Stephens is always on hand to help guide you through the opportunities. Please don't hesitate to contact us with any further questions that you may have. 

 

 

DISCLAIMER
The following advice is of a general nature only and intended as a broad guide. The advice should not be regarded as professional, legal, financial or real estate advice. You should make your own inquiries and obtain independent professional advice tailored to your specific circumstances before making any legal, financial or real estate decisions. Click here for full Terms of Use.