The top 10 spots to score a home for a bargain and bank on capital growth have been revealed — and while the top two spots are in Victoria the next eight are in the sunshine state.
The first two spots were secured by Norlane and Lovely Banks in Victoria, but after that it is all Queensland.
Property researcher, RiskWise, has run the ruler over the country’s housing market and concluded Hollywell, on the Gold Coast, is the best suburb in Queensland to buy an affordable home for long-term capital gain.
The waterside lifestyle location is ranked as the third best location in Australia.
Hollywell is about 70km south of Brisbane’s CBD and is characterised by many older-style houses ripe for renovation and is close to major shopping centres, good schools and the beach.
It has a median house price of $786,614, according to CoreLogic.
Mount Ommaney, Sinnamon Park and Gordon Park in Brisbane also make RiskWise’s top 10 list, along with Gaven on the Gold Coast and Doonan on the Sunshine Coast.
Mount Ommaney has a median house price of $852,729 and the average house in Sinnamon Park costs $747,272, with both suburbs only 14km from Brisbane’s CBD.
RiskWise chief executive Doron Peleg said buying a ‘bargain’ property didn’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 really aren’t the best buy.”
The RiskWise analysis identified the most affordable suburbs for houses in Queensland where solid capital growth was expected — particularly in the medium and long term — even if Labor was to win the federal election and make changes to negative gearing and capital gains tax.
“These (Queensland) suburbs, which all enjoyed capital growth of 13 per cent of the past 12 months, are expected to continue to do well as they have a number of things going for them,” Mr Peleg said.
“For starters, they are relatively affordable and all within 100km of Brisbane which means, provided there is a good public transport and road infrastructure, commuting to work is not too much of an issue.”