As issues surrounding affordability continue to rise, investors are increasingly looking further afield to get into the property market.
There’s no denying that the cost of housing within the inner-city of Australia’s capitals is continuing to rise, particularly in Melbourne and Sydney – and as a result, potential buyers and investors are increasingly looking further afield to get their foot in the door.
As RP Data Senior Researcher Cameron Kusher points out, middle ring suburbs – those within 10-20km of the CBD – are proving to be an attractive option for many.
“These established suburbs often offer greater amenities than those suburbs located further out from the CBD.”
What do they offer?
Typically, far greater affordability relative to their comparable counterparts closer to the CBD.
They also offer buyers larger lot sizes for houses and a lower density unit landscape.
“While overall amenity may not be as significant as within the inner 10km ring, because they are well established suburbs and still close to the city centre they are typically well catered for with regards to amenities and infrastructure.”
And there in lies the most important point — proximity to quality infrastructure and local amenity. It’s all well and good to propose moving to a more affordable middle ring suburb, but if that suburb is not supported with a solid foundation of transport facilities, linkages or local amenity, then that value originally obtained from an affordability stand point, would greatly diminish.
Rather, the trick is to identify those areas that have those foundations in place and that can support future growth in the years to come.
These are the areas where great value lies, and where strong capital growth can be achieved over the medium to long term.
For a full list of Cameron Kusher’s most affordable middle ring suburbs, click on through for the full article.