For investors with a low budget, these suburbs offer a good prospect. Median prices are low, yields are high and supply and demand factors suggest prices should rise steadily over the next few years
PARA HILLS, SA
(Median house price: $213,000) (Rental yield: 6.7%)
Selling points: With low house prices, lots of open space and an abundance of nearby parkland, Para Hills, not surprisingly, is a red hot first homebuyer favourite. In addition, it is a popular place for families that do rent – close to half of residents are tenants. This balance helps to keep prices afloat, but the real selling point is the rents. With the right property, positive cash flow is not just a possibility it’s a probability thanks to rental yields of 6.7%.
Convenience and lifestyle: Some 14km from the Adelaide CBD, Para Hills lacks the transport options you’d associate with a lot of inner city suburbs, but it makes up for it with a strong choice of restaurants and shops. Para Hills Reserve and The Paddocks gives the suburb a good dose of green and numerous schools are in walking distance. Numerous bus routes serve the area.
The numbers:
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Tight rental market: half of properties in the suburb are rented, but the vacancy rate remains a low 1.63%
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Low supply: Just 0.71% of properties in the suburb are listed for sale, yet properties that do go on sale are lapped up by the market within 92 days
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12-month growth of -5%, measured against annual average growth of roughly 10%, suggests prices have been underperforming in recent times and could be in line for renewed growth
Typical deals: As a lower priced suburb, the variety of property types is low and established houses form the majority of properties.
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