Two thirds of Aussies want to buy investment properties in capital cities

By |
Despite the frenzied apartment construction taking place in many Australian capital cities (leading to fears of a looming oversupply), two thirds of Aussies (69%) who want to buy investment properties want to acquire one in a capital city.

This statistic was taken from a new Galaxy survey of 1,005 people nationwide on behalf of State Custodians Home Loans. In contrast, slightly more than half (54%) of Aussies who want to buy investment properties want to purchase one in regional areas.

Victorians, South Australians, and West Australians, in particular, show a strong desire to invest in capital cities. Seventy-two percent of Victorians want an investment property in Melbourne, compared to 33% who want an investment property in regional Victoria. Meanwhile, 80% of South Australians want an investment property in Adelaide, compared to 36% who want an investment property in regional South Australia. More West Australians nominated Perth (66%) followed by elsewhere in the state (31%).

The figures were much closer in New South Wales. Most residents want an investment property in Sydney (51%), only slightly ahead of regional New South Wales (49%).

The only state that did not favour their capital city as their first preference was Queensland. Some 56% of residents said they were more interested in regional Queensland than they were in Brisbane (50%).

Joanna Pretty, general manager at State Custodians Home Loans, said it’s no surprise that capital cities are still favoured by property investors. “Metro areas have always had a strong rate of return, so although they are more expensive to buy into, they are still a good option,” she said.

“However many regional areas are starting to show strong returns also, particularly as affordability decreases in the cities and people make lifestyle choices and move to regional areas. So it can be [a] more affordable option for property investors.”   

Overall, the survey shows that people are most comfortable investing where they live. Among those living in capital cities, 87% wanted to buy an investment property in a capital city versus 40% who wanted to buy an investment property in regional areas. For regional residents, 82% wanted to invest in regional areas versus 33% who want to invest in a capital city.

Regardless of their preference, it pays for investors to consider the bigger picture. “As with any property investment strategy, the key is to research potential areas carefully and make the right decision for your budget,” she says. “While you may be more familiar with the area you live in, don’t limit yourself by not investigating other options that may be a more cost-effective option.

“Even if you are buying an investment property nearby to eventually downsize to, or to pass onto family members, you need to take into consideration the property’s future growth potential,” said Pretty.  


Related stories:
Capital City Dwelling Values Rose Slightly In November
Highlights From CoreLogic’s Latest Auction Preview And Property Market Update

 

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Top Suburbs : freshwater , torrensville , emerald , kariong , cardiff south

go back

Get help with your investment property



Do you need help finding the right loan for your investment?


When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus and appointment is free.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here