Top 10 places to score a bargain in Australia

Top 10 places to score a bargain in Australia
With property prices plummeting across Australia, it’s true to say it’s a buyers’ market and RiskWise Property Research has identified the Top 10 places to score a bargain with the expectation of solid capital growth down the track. 
 
RiskWise CEO Doron Peleg said buying a ‘bargain’ property doesn’t necessarily mean buying a ‘cheap’ one. 
 
“It’s more about knowing where to buy for long-term capital gain,” Mr Peleg said. 
 
“Sure, there are a lot of well-priced houses out there but if they are not expected to grow in value down the track then they aren’t the best buy.” 
 
RiskWise analysis has identified the Top 10 most affordable suburbs Australia-wide where solid capital growth is expected, even if Labor win the Federal election and make changes to negative gearing and capital gains tax.
 
 
The ALP proposes to limit negative gearing to new houses only and reduce the discount on capital gains tax from the current 50 per cent to 25 per cent, and the impact on the housing market, already in a state of turmoil, will be significant, he said. 
 
“A number of markets across Australia are already experiencing weakness and the introduction of these reforms will hit them hard,” Mr Peleg said. 
 
“However, these suburbs we have identified are expected to continue to do well as they have a number of things going for them. 
 
“For starters, they are mostly within 100km of a capital city which means, provided there is a good public transport and road infrastructure, commuting to work is not too much of an issue.  
 
“Also, these are affordable suburbs that enjoy strong demand during a period of lending restrictions and lower borrowing capacity. 
 
“This is certainly the case for Norlane and Lovely Banks, for example, which are both northern suburbs of the Victorian port city of Geelong which has, and is expected to continue, to enjoy good capital growth.  Geelong has benefited from high population growth, a rise in infrastructure projects, an improved economy and more jobs, and this has greatly increased the popularity of the area. 
 
“Add to that it only takes an hour to drive to Melbourne and housing is significantly more affordable, it is ticking plenty of boxes for a lot of people with their eye on capital growth in the future. You can buy a house in Geelong for around the same price you could buy a unit in Greater Melbourne. It represents excellent value for money.” 
 
Norlane, with a median house price of $370, 931, and Lovely Banks, with a median house price of $455,868 are enjoying strong demand with both enjoying capital growth of 26 per cent in the past 12 months, in a contrast to the current weakness in the property market. The capital growth for Greater Melbourne in the last 12 months is -5.8 per cent and the median house price is $780,130. 
 
Hollywell, a waterside lifestyle suburb on the northern Gold Coast and only 67km from the Brisbane CBD, had capital growth of 13 per cent in the past 12 months. It is characterised by many older-style houses ripe for renovation. Close to schools, shops and the beach, it has many canal-fronting properties suitable for families with good road infrastructure networks to make commuting easy. 
 
Mount Ommaney and Sinnamon Park (both with 13 per cent capital growth in the past 12 months) are only 14km from the Brisbane CBD. Both border the Brisbane River and many of their properties enjoy big blocks in leafy surrounds with views to the city. These lifestyle suburbs also neighbour protected bushland.  
 
Gaven, which had capital growth of 12 per cent in the past 12 months, is a suburb of the Gold Coast about 66km from the Brisbane CBD. Characterised by older-style acreage properties with lots of scope for renovation, it is close to the M1 and train stations. 
 
The leafy suburb of Gordon Park is just 5km north of Brisbane city. Known as the smallest suburb in the Brisbane City Council, it is characterised by well-maintained character homes and is bordered by recreation area Kedron Brook.
 
It neighbours Stafford Heights which also made it on to the list. 
 
While both Doonan and Twin Waters are Sunshine Coast suburbs, and therefore further away from the CBD than others on the Top 10 list, they are located in a burgeoning area that is extremely popular with interstate buyers looking for lifestyle in more affordable areas than Sydney and Melbourne. 
 
Mr Peleg said off-the-plan units, particularly in over-supplied areas, still topped the list of the most perilous property investments, and these risks would rise dramatically if changes to negative gearing and capital gains tax go ahead causing the creation of primary and secondary markets.
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