Top 50… Says wHo???
This month Smart Property Investor SPI magazine released it’s TOP 50 suburbs to keep an eye on 2014. Now I couldn’t sit back and say nothing, so here’s my 2 cents worth…
They choose a select group of property experts and let them choose where they think investors could put their money and see some good capital growth in the coming year.
I don’t get a start in these articles, as I don’t disclose my locations that I am investing into in the next 12 months.
Seriously… I don’t want a thousand investors swarming my secret investing locations, creating competition for myself and the investors I am buying for and putting prices up.
I want the deals for us…
But it doesn’t mean I can’t give you all some feedback on my thoughts of some of the good locations and some of the ridiculous ones chosen.
The first thing to point out though, is that some so-called property experts have an agenda. Meaning that they “may” choose a location as they are selling house and land packages in that area or selling developers stock. Maybe the LEP for that area allows for Granny Flats to be built easily so they continue to promote these locations to investors knowing that there will be no capital growth. Some of them have already had negative growth over the last 12 months. They simply offer these locations as great for yield…
Well whoop dee doo…
So let’s cut to the chase:
Good performers to be – a few locations to get into now… if you hurry:
- Spearwood WA
- Coolangatta QLD – be wary of high rise units though
- Mount Gravatt QLD
- Toowoomba – be wary of flooded areas, remember watching those cars surfing down the main road… yeh that was Toowoomba
- Stafford QLD
Now for the fun stuff… here’s a list of areas to run for the hills… I might even get some hate mail from this… but like always I will explain wHy?
- Acacia Ridge QLD – rough part of town, near Logan
- Blacktown – been heated for past 5 years and now slowing
- Lethridge Park – been heated for 5 years, now slowing…
- Merrylands – same as above
- Mount Druitt – and again, remember what I was saying earlier???
- Penrith – and again
- Newcastle – I am very wary of the damage Mr Tinkler has caused that town
- Sunbury – well you will certainly have some choice, only 670 properties for sale as of today. This is one of Melbourne’s areas that are getting smashed with new H&L packages. I have spoken about this in numerous Blogs before… market already going backwards and yields @ 4.6%… awesome… RUN!!!
- Whalan – another Western Sydney suburb
- Wickham NSW – located in Newcastle, same as above
Is it just me or is this a huge number of Western Sydney suburbs in this list??? Even looking at the numbers, these suburbs have peaked and well passed the line of affordability (income to debt ratio). Or is it because of the Granny Flats? We were buying in South Western Sydney in 2008-09 during GFC… when the awesome deals were around. Watch for a big fall here…
Now not that I don’t think these locations will perform, but we have already purchased there and finished up. Meaning you have already missed the boat and it would be irresponsible of me to promote these to you, our readers… everyone else, ah let em buy there and put our property values up.
- Kwinana WA– may have missed the boat, we were buying there a year ago
- Aldinga Beach SA
- Seville Grove WA – may have missed the boat, we were buying there a year ago
And as a little twist… there is one location that is very close to wHere we are currently buying… Dam someone is onto me… if you are one of the smart ones who have already purchased there with us and already know this location, please keep quiet on our public forums as we don’t want the secret to get out… yet!!!
Now we still have numerous copies of this edition of SPI Magazine, pop into the office and grab a free one!