If you are living in Australia for a decade or two, you have surely invested in a property a long time ago and must be near gaining its fruit, but what if you are a foreigner? You are either dependent on your relatives to help you find the right property or on your ability to conduct thorough research and invest at the right place.
Yet, you all need to remember one thing: what is a lucrative property is very subjective. A sea-facing apartment in Queensland can be enticing for one investor but not for others. They might be interested in investing in a place that would guarantee capital growth.
Therefore, it is very crucial to have a list of suburbs where you can invest confidently and ensure you will generate profit out of it, if not in six months, so at least in the long term.
What are the top 5 capital growth suburbs in Australia?
Australia is always known for insane property values. After all, on average, the value has spiked to 400% since 1993. Therefore, the Aussie market is ideal for people who want to earn a lump sum of money from property investment.
Yet, the question is the same: where to invest.
Its answer is always in the data that you must read. You must read blogs and articles, or reports of known buyer’s agents in Australia, to make an informed decision.
Recently, CoreLogic compiled a list of the top 50 capital growth suburbs in Australia in which included the places where
- Median value surges 10% of the value in the span of a year, 3 years, or 5 years
- They have fewer than 50 sales in a year
Based on the report and current market knowledge, here are the top 5 capital growth suburbs where you can invest
| S.No | Suburb | Average median value raise | Property value |
| 1 | Peakhurst, NSW | 48% | $1,488,000 |
| 2 | Belmore, NSW | 47% | $1,467,000 |
| 3 | Caringbah South, NSW | 46% | $2,344,500 |
| 4 | North Epping, NSW | 46% | $2,192,000 |
| 5 | Charters Towers City, QLD | 46% | $200,000 |
What are the top rental yield suburbs in Australia?
If you want to earn some amount from your property investment, it is important to focus on apartments and townhouses that can generate a steady rental income for you.
For this, you may need to contact an informative and skilled buyer’s agent or an agency, like Investor Partner Group, to make a fruitful decision.
Based on CoreLogic’s report and list of top 100 rental yield suburbs, we have listed the five best of them.
| S.No | Suburb | Property type | Property value | Average rental income |
| 1 | Manunda, QLD | Unit | 160,000 | 280 |
| 2 | Manoora, QLD | Unit | 173,200 | 300 |
| 3 | Berserker, QLD | House | 225,800 | 350 |
| 4 | Earlville, QLD | Unit | 203,500 | 335 |
| 5 | Park Avenue, QLD | House | 258,800 | 350 |
Summarily, data suggests you invest in Queensland to get monthly income from the effort your money has put in. However, still, you cannot invest yourself; you need a real estate agent, specifically a buyer’s agency, Australia, to help you invest in a high-potential property that will grow.
Where to invest in Australia? Cities or regional suburbs?
Although data gives answers to this question very well, it is significant to see what successful investors are doing and how they are expanding their portfolio and strategizing their investment. For this, you need to ask a few questions to your buyer’s agent.
What are favorite spots of investors nowadays?
For a very long time, investors have always shown interest in inner city units for residential purposes because of their aesthetics and location, even though the affordability of regional towns makes them more lucrative in the current scenario.
From coastal regions to north Queensland, investors mainly dream and make an effort to get a place there based on their investment and financial goals.
Is it fruitful to invest in a capital city?
The answer is NO! Recently, 60% of the dwellings owned by investors lost their property value, plunging below the median. Similarly, Melbourne has the same situation. Therefore, it is better to invest in inner city or regional suburbs.
Although you may find some lucrative properties for cheap in the city, as Sydney has various properties whose value is within $500k, you must remember the requirements to invest in a capital city are far more than those in regional towns.
What do experts say about city investment?
According to experts, such as Michael Yardney, city properties will bring profit as capital cities will grow economically in the span of 40 years and will offer better opportunities. Yet, it is important to remember what your goal is. If your goal is rental income, investing in a city is a good option, but if you want capital growth, go for regional properties. The ongoing development to encourage people to move to the suburbs will fuel property value in the coming years in regional towns, insanely.
So, what are the best places to invest overall?
Its answer depends on whom you are following and listening to, because every company and agent has a different opinion. To help you make a sound decision that directly hits the investment, we have used the three best suburbs lists of different agencies and tabled five from each for your assistance.
| S.No | Well Home Loans Green Shoot | Me Bank | McGrath |
| 1 | Deebing Heights, QLD
Median Value: $425,000 Rental Yield: 4.7% |
Woolloongabba, QLD
Median Value: $900,000 Rental Yield: 3.2% |
Avalon Beach, NSW
Median Value: $2,850,000 Rental Yield: 2.2% |
| 2 | Springfield, QLD
Median Value: $536,000 Rental Yield: 4.6% |
Burleigh Heads, QLD
Median Value: $1,200,000 Rental Yield: 3.2% |
Footscray, VIC
Median Value: $880,000 Rental Yield: 2.7% |
| 3 | Jimboomba, QLD
Median Value: $460,000 Rental Yield: 5% |
Five Dock, NSW
Median Value: $2,100,000 |
Fairfield, QLD
Median Value: $858,000 Rental Yield: 3.2% |
| 4 | Davoren Park, QLD
Median Value: $285,000 Rental Yield: 5.2% |
North Melbourne, VIC
Median Value: $1,270,000 Rental Yield: 2.4% |
Griffith, ACT
Median Value: $2,000,000 Rental Yield: 2% |
| 5 | Huntly, VIC
Median Value: $402,000 Rental Yield: 4.9% |
Rozelle, NSW
Median Value: $1,800,000 Rental Yield: 2.3% |
It is recommended to read these reports yourself too, because it will give you more clarity about the booming suburbs so that your decision will be data- and market-backed.
Conclusion
For foreigners, investing in Australia is complicated because they lack market knowledge due to proximity issues. Therefore, they are forced to be dependent on a buyer’s agent. Yet, if they want to go to them a little informed, they must read articles, follow some known buyer’s agents, and ask themselves why they want to invest in Australia, and what is their motive, rental yield or capital growth.
This blog is ideal for those who want to invest but are not aware of the top suburbs and locations to look for. We have compiled a list of the best capital growth and rental yield suburbs separately, answered your queries regarding city and regional investment, and also provided the list of the overall best locations for property investment so that you can make informed decisions and your investment will bring fruit.
FAQs
What is more important? Capital growth or rental yield?
It depends on your motive! If you want income immediately so that you don’t need to depend on your job, rental yield is important, but if you want to generate wealth that will bring fruit to your generation, capital growth needs to be the crucial factor in property investment. Capital growth saves you from negative equity, which ultimately results in profit in the long run.
How can Investor Partner Group help me in buying high-end property for investment?
Investor Partner Group is a leading property investment agency in Australia with local buyer’s agents across Australia for each city. They utilize their market knowledge, AI tools, and large database to offer you personalised suggestions and situation-specific guidance to help you invest in an enticing property.
With the experience of dealing with multiple foreigners in property investment, IPG offers you specific assistance so that your investment journey will be stress-free and more fruitful than you have expected.
How can I invest myself without a buyer’s agent’s help in Australia?
Well, it is next to impossible because a buyer’s agent not only evaluates and navigates the locations according to your requirements, but also works on your behalf to inspect the place and negotiate the price. They utilize their vendor channels to maximise the profit and keep your wallet half-full. Their knowledge helps them deal with lenders in financial and legal matters during property investment, which ultimately benefits you.
Although at times they charge more than your expectations, this expense is better than facing a loss after a year or two. So instead of thinking to roam around the place yourself with a smart friend, seek the help of an expert.
What are the best capital cities for property investment?
According to Simply Wealth Group, Brisbane, Adelaide, and Perth are the high-potential capital cities to invest in because of the ongoing infrastructure development, which ultimately surges their economy and makes room for employment opportunities. These factors will positively affect the property value in the long run.
