- May 12, 2021
- Posted by: admin
- Category: Property News
Location is always the first factor to consider when buying a property. As we all know that some locations offer better opportunities than others, and successful real estate investors are those who know where to buy. This leads us to our first question– Should you invest in city or suburbs?
It is undeniable that the cities are gateways to the real estate markets from time immemorial. However, today, the investment trend has defeated the old assumption as property investors have started to move out of the gateway markets into the suburbs. So for those looking to invest in Victoria, keep reading to learn why the suburbs markets are the best places for buying an investment property in 2021.
Benefits of buying property in the suburbs
Investing in the suburbs real estate is a prudent decision, especially if you are more prone to find long-term quality tenants. Apart from the traditional attractions of the suburban real estate markets for larger homes, good schools, and outdoor space, there are more benefits of investing in the Suburbs properties. Let’s dive deeper to understand better why you should invest in the suburbs property market.
1. More Potential for Growth
The suburbs were designed to help residents get the best of both worlds, serving as the meeting point of urban and rural living. Hence, growth appears to be on the side of the suburban real estate market. This new market is experiencing rapid economic growth as infrastructural development makes the suburbs in the Australian housing market even more attractive to future developers. Moreover, developers in the suburbs are raising the bar by building high-end homes, condo complexes, and luxury properties. As a result, experts predict suburban real estates to become the next hot thing for smart real estate investing.
2. Affordable Properties
Home prices are a genuine concern in the cities in the Australian housing market. Therefore, beginner property investors avoid buying and investing in these markets, as these real estate markets lack affordable housing. However, the rise of suburban markets offers a solution to property investors looking for more affordable investment opportunities. This challenge in the urban region market has driven government planners to find and develop new land in suburban areas. These new developments make buying and investing in properties easier for anyone interested in real estates investment. In addition, buying and investing in affordable suburban properties would help many younger Australians meet their homeownership goals.
3. Modern homes for modern lifestyles
New suburbs mean new homes, and new homes come with all the bells, whistles, and innovations most of us have come to expect in a property. Older homes can have costly and potentially dangerous structural issues. New homes, on the other hand, are built with the modern lifestyle in mind. For example, many newer properties come with additional rooms like rumpus and theatre rooms.
4. High Rental Yields & Long-term price growth
Buying properties in the suburbs could save you money in the short term and also make you money in the long term. It saves you money in the short run considering the cost of acquiring the property and makes you more money as the property is in a location with a high potential for development. Moreso, the low vacancy rate, high rental demand, high occupancy rates, and economic growth allow property investors to raise the amount they charge for rent.
However, when buying property in the suburbs, you have to focus on the short/medium-term savings and the long-term price growth.
5. Less Wear and Tear
People living in the suburbs tend to stay there for a long time; therefore, it is much easier to find long-term renters in the suburban regions than in the cities where people are always on the go and frequently relocating. Since renters in the suburbs stay longer, they treat rental properties as their own, leading to minor wear and tear for your property.
6. Economic development
Although people have a misconception that suburban areas are located in the middle of nowhere, with limited amenities, the suburbs have become the cherished getaway for busy business executives from the hustle of city life. Moreover, with the recent trend of the tourism and agriculture industries in the suburbs, the suburbs are now maximising and developing their local economies to create thriving, sustainable communities with most of the conveniences anyone could hope for. According to the emerging trends reports and all those mentioned above, there is a conclusion that buying property and investing in the suburban housing market is excellent for profitable long-term real estate investing. Never the less, The secret, however, is investing in the right location. This brings us to the following question:
Here are some top suburbs to invest in Victoria
With the Victorian government plan to de-centralise Melbourne and move some industries out of the city due to the massive population growth its experiencing, many property investors are looking towards the suburbs for their next property investment. Based on this recent market performance, it’s likely that the Victoria suburban house price growth will hit double-digit soon. Therefore, investing in the following Victoria suburbs will be a smart move for real estate investors or prospective homeowners.
Real estate investment remains one of the best and safest way to make money. But when thinking of buying a property in the suburbs, knowing where to put invest might feel a little baffling. But as experts in real estate with in-depth knowledge of the Australian real estates market, the following are the best Victoria suburbs to invest in:
- Box Hill
These suburbs are already thriving communities, set to get even better with timely delivery of critical infrastructure and a host of new amenity in place. They all have transport options, trusted schools, retail precinct city centres, parks, sporting grounds, community programs, and business parks, offering the city lifestyle you can wish for. In addition, they are the best places for buying an investment property because they are experiencing rapid economic growth. And the increasing number of renters, attractive cost of living, and workforce quality are all factors contributing to the economic development of these suburban real estate markets.