The biggest question I'm asked almost daily is, "Where should I be buying?" This question is coming from everywhere including my friends who are looking to invest and the taxi driver I had in Sydney this past weekend.
Asking a real estate agent this question isn't as straight forward as you would first think. Every agent may have a differing opinion on which suburb is the most popular and where you should be buying.
You might ask, why is this? Yes, you are chatting to a sales person, but in the investing space, it is because the 'where' very much depends on what you are hoping to achieve from a financial or strategy point of view. Each suburb or area provides investors different offerings, suited to their different needs.
To answer the 'where' question, two key points to consider are... Is it cash flow that you're after? Or is it capital gain?
Equally as important to consider are questions such as... How long is your investment horizon? Is it strictly an investment? Or will you be living in it yourself one day? And... What type of tenant do you envisage living in your home? All of the above factors will help you narrow the scope of where is best to buy.
So what are our views on the 'where' question?
If you're looking for capital gain, those suburbs that border the city have been performing well this year (such as Parkside, Norwood, Prospect, and North Adelaide). The inner west (Thebarton, Torrensville, and West Hindmarsh) is also proving popular for those purchasers looking for value-for-money and a lower price point to enter the market.
If you're looking for cash flow, we are seeing great yields in the north eastern suburbs such as Golden Grove, Greenwith and Modbury. These suburbs are currently seeing an average yield of between 4.1% and 5.1%.
If you are planning on living in the property one day, this is much more straight forward as it comes down to personal preference. It is simply a matter of finding a suburb where you could see yourself living!
As a whole, we are seeing the $400,000 to $800,000 price range to be the most crowded sector of the market. Whilst the added competition isn't the best news for investors looking to purchase, our team are here to help! We offer an exclusive off market service, The Vault, which provides VIP access for purchasers to view properties before they hit the public market.
At Toop&Toop we are passionate about investing in property and would love to share with you what we are finding in the Adelaide market, so give our team a call on 08 8362 8888 for a confidential chat.