Watch this space: Suburbs to edge in on
If you're a property investor, there are two things you'll need to be certain of.
Firstly, obtaining the right loan product is essential. Fortunately, mortgage interest rates are comfortably low at present. This is thanks to the Reserve Bank of Australia's consistent decisions to retain a low base interest rate. The 2.5 per cent official cash rate has remained in place since August 2013, giving investors plenty of reasons to borrow in order to invest in property.
Secondly, buying in the right area is essential. Investors should buy in suburbs that are primed for strong capital growth if they're set on making a profit when they sell up in years to come. Of course, investing in an area that's going to deliver consistently favourable rental yields is also a plus. Whether capital growth or a regular cash-flow is desired will depend on the investment strategy employed.
RP Data has identified the hottest suburbs across Australia when it comes to vibrant dwelling activity.
Covering both houses and units, the latest figures from the property analyst firm highlight the fastest-selling areas throughout Australia. The figures are based on selling activity in the suburbs over the last six months.
Investors may wish to direct their attention towards Old Toongabbie, Coolbellup and Lynwood, which came in at first, second and third place, respectively, for record sales.
In Sydney's Parramatta, houses in Old Toongabbie spent an average of just 12 days on the market before being sold, explained RP Data in a June 18 release.
In Coolbellup, properties spent 13 days on the market. Located just 15 km from the Perth CBD, it's no surprise this area is increasingly popular.
Perth's Lynwood was a well-performing suburb, with houses spending 13 days on the market before being sold.
Other suburbs that had houses or units spending between 13 and 14 days on the market hailed from Sydney, specifically Parklea, Quakers Hill, West Gosford, Willoughby and Lalor Park.
Houses in Sydney's Werrington Downs and units in the New South Wales capital's Lane Cove North spent an average of 15 and 16 days on the market, respectively.
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