Top 10 Sydney Suburbs – Be Careful With Best Suburbs
It is relatively simple now to pick up Market intelligence for every Australian suburb just by Googling on the web. If you’re unsure of which suburb you’d like to research, you can also search by preferences, budgets or a host of other indicators. I recently tried these searches:
- Top 10 Sydney suburbs for 2016
- Top 10 Melbourne suburbs for 2016
- Top Brisbane suburbs for 2016
- Top 10 Perth suburbs for 2016
The problem is what do you actually do with the information you discover? For example, just a few years ago, one of the very ‘best’ areas to investment in through historic capital growth, huge rental return and even affordability (if you got in early enough) would have been the mining town of Port Hedland in WA. A search may also have picked up a town like Moranbah in the coalfields of Central/north Queensland. Both places were exceptional performers, probably the best in Australia, for a short time of a few years at the height of the mining boom. Now property investors in these towns have gone from positively geared property to very highly negative geared property as their huge yields have disappeared and they struggle to find a tenant. Also, the chances of finding a buyer, even at a very low price, are minimal.
Even in the Sydney market over 2015, the suburbs popping up as ‘the best performing” were in the far west or south west such as Liverpool or Campbelltown; both did perform extremely well for most of 2015 but maybe an investment in these ‘top’ suburbs in late 2015 was not necessarily the ‘best’ investment.
Sites like realestate.com.au and domain.com.au can be very helpful in reviewing a suburb for possible purchase of an investment property but a lot more research is necessary before making a decision on the best investment property for you or understanding why a negatively geared property may be a better investment initially for you rather than a positive geared property.
