High Growth Property Hotspots
SYDNEY, NSW
Ranked #4 In the world’s most liveable cities in 2023.
$112.7 Billion infrastructure Spend within the state which is set to create 145,000 jobs per year.
Key Projects Include $15,5 billion Western Sydney Airport Line over the next few years.
Western Sydney Airport to be completed late 2026.
Other Key Factors contributing to growth in Sydney include Low unemployment rate (4%)
Strong demand for housing, high population growth 5.312 million (2019) and set reach 6.59 million by June of 2023.
Sydney’s geography and urban planning regulations limit the availability of land for development, particularly in desirable areas close to the city center and waterfront. This scarcity of land, coupled with the growing demand, has historically driven property prices upward, presenting opportunities for capital growth.
Sydney Economic contribution between 2021 and 2022 was $633.6billion.
MELBOURNE
Ranked #3 in the World’s Most Liveable City 2023
And now Australia’s Largest City by migration since March 2023, with a population of 5,235,000 in 2023
Melbourne is still One of the most affordable places in Australia with most key locations within a 30-minute drive to the CBD.
Melbourne has historically attracted both local and international property investors due to its strong rental market, potential for capital growth, and stable economy. Investor activity, particularly in popular areas, can further drive-up property prices.
The City’s Economic contribution was $378.9 Billion between 2021 and 2022, With a low unemployment rate of 3.2%
PERTH, WA
TAKE ADVANTAGE OF THE RISING PROPERTY CLOCK.
One of the most connected cities in Australia to the rest of the World, Perth had a population of 1,894,000 in 2015 which jumped to 2,118,000 in 2023 and is set to grow to 2,325,000 by 2030 mostly due to international migration as Australia opens its borders.
Since 2008 Perth Median Price Has gone up by
Some of the key Attributes to Perth’s growth include Strong economic growth, Low unemployment rate (3.0%)
Affordability (one of the most affordable locations in the country)
Strong Rental market with yields from 5% -9%
The WA Government announced its $33,9 Billion spend on Major Infrastructure projects with About $6 billion will be spent over the forward estimates on Metronet projects https://www.metronet.wa.gov.au/Projects until 2026
DUAL KEY HOMES
HOUSE AND LAND
NEW BUILD S
Multi Generational Homes
New VS Old Property Types
When it comes to property types, there are differences between new and old properties that potential buyers or investors should consider. Here are some key distinctions
NEW PROPERTY BENEFITS
- Depreciation: New homes frequently qualify for higher deductions for depreciation. As a landlord, you are entitled to tax deductions for the depreciation of certain items including fixtures, fittings, and appliances.
- Building Allowance: When purchasing a new property, you are entitled to write off the cost of the walls, roofs, floors, and foundations of the building. This tax credit, which is dependent on the building’s construction costs, might be quite beneficial.
- Buying off-the-plan homes can save you on stamp duty in most States, you only pay STAMP DUTY on the land purchase value, whereas on established/ older properties you pay stamp duty on the full value of the house.
- LOW MANTAINANCE, as most items are newer in the house and will most likely have a warranty if they were to break.
- Generally Newer Properties attract more tenants and in return could contribute to asking more rent.
Construction and Condition
- Ideal for adding value: There’s significant potential to add more value to the property with an established property through renovations and improvements. Moreover, these costs are tax-deductible. Even a cosmetic makeover can improve the value, rentability, rental return and depreciation of an older property – something that can’t be done with a new property.
- More value in the land: Older properties tend to hold more value in the land than building itself. As generally, land tends to grow in value while building loses value over time.
- Capital growth: Generally, an established property will outperform the average and see higher capital appreciation.
- Next to established infrastructure: Older properties tend to be located in areas with more established infrastructure such as transportation, schools, hospitals etc. These infrastructures are also drivers of property growth.
Resources
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