When you are looking to invest in property you are looking for the sweet spot, a great price with a great location, and capital cities are the locations that a lot of investors have property.
The Property Observer recently published an article - based on RP Data - discussing which capital cities had properties under $400k.
Hobart and Adelaide were the winners with close to 3/4 of houses coming in under that figure and Adelaide had just over half of sales under $400k.
What I think was most interesting was the following graph was not the total figure under $400k, but the range between $200,000 and $400,000. This is often the level where investors want to spend, and there are fairly large number of properties in all of the listed capital cities that fall into this category.
Capital City
|
<$200,000
|
$200,000 to $400,000
|
Total <$400,000
|
Hobart
|
12.9%
|
58%
|
70.9%
|
Adelaide
|
6.3%
|
52.1%
|
58.7%
|
Brisbane
|
2.5%
|
43%
|
45.5%
|
Melbourne
|
1.9%
|
34.5%
|
36.4%
|
Darwin
|
5.1%
|
28.6%
|
33.7%
|
Sydney
|
2.4%
|
27.9%
|
30.3%
|
Canberra
|
1%
|
21.5%
|
22.5%
|
Combined caps
|
2.7%
|
34.5%
|
37.2%
|
The Property Observer also mentions that Sydney had the highest proportion of sales above $1 million (11.1%), followed by Melbourne (7.8%) and Perth (6.5%). There were also more sales below $200,000 (7.1%) compared with sales over $1 million.
This all means that there are always 'deals of a lifetime' every week, if you look hard enough. Those new to investing look at the $500+ figure and feel that it's out of their range. When you look at these figures, you realize that there are deals around, and in great locations if you look for them. Also I'm aware that these figures above do not differentiate between single dwellings or apartments, but as an investor you are likely to have a mix of these properties to round out your portfolio.
What is your view on this, do these figures accurately reflect what you are seeing in your area?
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