What kind of suburbs are perfect for first-time buyers?
There is an excellent environment for buyers taking out their first home loan in Australia right now. The market is slowing in the classic investment zones of Sydney and Melbourne, opening up these cities for new buyers, while housing finance is showing “strong growth”, according to the Property Council of Australia. The low interest rates and increase in housing supply are creating the perfect opportunity to get onto the property ladder.
However, with so much selection in property, how do you know where to buy? What are some of the best suburbs for a first home buyer?
Choose the right first home and see your investment grow.
High growth, low value
It’s perfectly possible to stick to buy a first home as an investment, so long as you choose the right areas.
Your first stop is to find a suburb that has plenty of growth potential. While it’s tempting to just go for a place that ticks all your boxes from a personal standpoint, remember, this is more than just a home – it’s an investment. Choosing the right property to start with is integral to having enough equity to refinance your loan and upgrade should you wish to.
But a first investment is not just about building wealth through property: you have to be pragmatic about your location and distance from your place of work. While it would be fantastic to be able to buy into the fast-growing inner-city suburbs, this simply is not an option for most first home buyers. Instead, consider suburbs that are further out from the city centres with a lower value, but also have local development plans intended to grow the area.
For example, nearly every Sydney suburb listed by Smart Property Investment as being hotspots for growth in 2016 had good infrastructure or plans to develop it. Keep an eye out for new light rail systems, nearby train hubs and bus stops – investigate with the local council to see if there are significant route changes or additional features coming to the area. Public transport is integral to the growth of a community, as are good roads. The more capital you see pumped into these local amenities, the more likely you are to see solid property value growth.
It’s perfectly possible to stick to buying a first home as an investment, so long as you choose the right areas. Good infrastructure, solid development plans and a good entry-level pricing point all spell a perfect spot for first-time buyers.
