First-time investors might have a better chance of entering the property market when considering a purchase in these five suburbs.
Blogger: Michael Murray, managing director, Murray Property
With property prices at its peak, first-time investors or families can find it difficult to find a home that’s within their price range. Despite the swelling prices of the inner and middle-ring Sydney suburbs, some great opportunities still lie in the outer ring to buy cheap properties with the potential for good returns in the future. Investors will also typically find larger properties in a lower-density landscape – a factor that many renting families are now leaning towards.
Approximately 43 kilometres west of the CBD, Mount Druitt is on the direct train line and has good access to major motorways in the city. Recently, there has been good residential development and a local mall to attract more residents to the area. The median value of a unit is approximately $325,000 and the value of real estate has gone up by 6.7 per cent every year for the last two decades, based on data from Onthehouse. Cheaper properties in Mount Druitt make it an attractive proposition for first-home renters, especially with the demand for good rentals on the rise.
Blacktown has risen in prominence as a popular rental hub, because of its affordable housing availability and demand for rentals. Units are still available at a median price of $397,500. According to data from CoreLogic RP Data, approximately 35 per cent of the population is looking for rental homes and units. First-time investors must see this as a potential opportunity to acquire a steady rental income stream from tenants. Blacktown is a multicultural suburb with plenty of diversity. Good schools, sporting facilities, transport links, art centres, shopping centres and entertainment zones make it a popular suburb with many families and couples.
Liverpool is an eclectic mix of residential, commercial and industrial properties – making it an attractive proposition for renters who work in the area. This western suburb is conveniently connected to the city via major highways, train links and public transport. A median unit price in Liverpool stands at $343,500. Rental income yield is also well above the city average, because of high demand from renters that make up 50 per cent of the local residential market. Major residential development is being planned in this suburb to cater to better business outlooks and the growing number of local residents.
With a median price of $489,000 for houses, Ingleburn is another attractive suburb for first-time investors. Apart from good rental demand from couples and families, this suburb has plenty of opportunity for growth – making property investments in this suburb a smart decision for investors. The suburb enjoys a healthy mix of renters and owners with several parklands, good transport links, shopping centres, schools and sporting facilities.
Located 52 kilometres away from the CBD, houses in Leumeah have a median cost of $445,000. This may be slightly higher than other suburbs in the area, but investors should keep in mind that the rental demand in this suburb is also higher. Investors can easily expect a rental income of $450 per week, which represents solid earnings for those looking for a steady income flow.