Property investors looking to cash in on the current growth spurt in the sector should stick to the inner and middle ring suburbs to ensure high capital gains according to an expert.
Monique Wakelin, director with Wakelin Property Advisory said the cities with the most compelling investment prospects for 2010 are Melbourne and Perth followed by Canberra, Brisbane and Sydney.
"The most compelling investment prospects for investors are 2 bedroom period style, single fronted houses in areas like Melbourne's inner north and Sydney's inner west, and 1 and 2 bedroom apartments in low rise established complexes in areas like Melbourne's inner bayside," said Wakelin.
Ongoing strong demand should also drive price improvements in some select middle to outer-ring suburban areas with a higher concentration of services and amenities than their neighbouring counterparts according to Wakelin.
"Estates in these areas are replete with quintessential 1960s and 1970s housing, laid out on clean, tree-lined streets. Typical of these areas are the Melbourne suburbs of Blackburn and Glen Waverley, upper north shore areas of Sydney like Westleigh and Turramurra, Hallett Cove in Adelaide and Aspley in Brisbane. Well positioned 3 and 4 bedroom houses in specific precincts of selected middle-outer suburbs should enjoy capital growth above the market average. But investors should note that capital growth returns are typically below those of investment grade property in inner suburbs," Wakelin added.
Collections: Mortgage News