After 18 months of stellar price growth pretty much everywhere in Australia, affordability is more of an issue now than ever before.
And, as we face the Federal Election, it’s clear that the problem isn’t going to be solved any time soon, because none of the major parties have policies that will make the cost of housing cheaper.
There are policies that may make it easier for young buyers to get a loan to buy an expensive house or apartment, but nothing to address the high costs of creating dwellings in this country.
So this is an issue for all sorts of buyers, not just first-home buyers.
Investors also are looking for opportunities where they can buy for between $400,000 and $500,000 – in areas with good prospects for future price growth.
Most investors want to buy in places with potential price growth, but they can’t afford to spend the $1million or more it will cost them in some capital city markets.
The good news is there are still plenty of affordable suburbs with growth prospects in some of the smaller capital cities and even more opportunities in major regional centres.
Low vacancy rates and strongly rising rents in most locations across Australian make investment in affordable areas an even more attractive proposition.
But here’s the key factor: for investors it’s not just about buying something cheap with a good rental return so that can cover the owner’s costs.
It needs to be in a location with the credentials for good capital growth.
Generally, there are still good options out there but it’s still important to do your research and not to just jump on the first property you can afford.
In 2021, too many people bought property with the attitude that you could buy anywhere and get capital growth.
In 2022, you need to be more selective to target areas that offer affordability and high returns, plus the credentials to provide sustainable price growth.
Among the capital cities, there are good possibilities in Brisbane, Adelaide and Perth.
And regional Australia offers tempting opportunities in Queensland, NSW, Victoria and South Australia.
The National Top 5 Cheapies with Prospects: City Edition 2022 provides valuable clues on how to buy affordably and sensibly in a crazy market.
Grab Your Copy Today – or save and get the Cheapies Bundle – City & Regional editions together.
