Knowing where to buy investment property is essential. Of course, some things are easier said than done in life.
It's hardly breaking news that Australian property investors have been focussing their attention on Sydney in recent months. The city is going from strength to strength - according to the Australian Bureau of Statistics, the Greater Sydney area had a population of 4.76 million as of June 2013, which is only set to soar.
While Sydney stands out as a spot for strong capital growth, cities such as Melbourne and Brisbane have been proving themselves.
Hot cities for investment
According to the RP Data-Rismark July Hedonic Home Value Index Results, released this month, Sydney is the winner city for year-on-year capital growth.
Dwelling values lifted a dramatic 14.8 per cent in the year to July 31, placing the New South Wales capital in the number one spot for residential property growth. The combined capitals average was 10.2 per cent.
Melbourne gunned ahead of the combined capitals average, with dwelling growth sitting on 11 per cent over the same period. Quarterly growth in the Victorian capital was 1.8 per cent, only slightly behind the likes of Sydney (2 per cent).
While Brisbane experienced a minor quarterly decline in dwelling values (-0.4 per cent), its annual growth to July 31 was 6.9 per cent - ahead of Adelaide, Canberra, Darwin, Hobart and Perth.
"Broadly, capital city dwelling values have trended higher since June 2012; since that time the combined capitals index has recorded a cumulative gain of 17.4 per cent," the report noted.
"The absolute standout performer for capital gains has been Sydney where values have moved almost 25 per cent higher over this time."
Investing in cash-flow positive properties in the NSW capital could be a move worth pursuing.
Brisbane a buyer's market
The Sunshine State capital has been dubbed a buyer's market, opening up great opportunities for potential and existing investors.
According to the most recent Commonwealth Bank/RP Data Home Buyers Index, Queensland buyers continue to have the "upper hand". In Brisbane there are "solid opportunities" for those looking to buy property.
According to a July 28 statement from RP Data National Research Director Tim Lawless, Sydney and Melbourne are markets geared for sellers, which is a plus for existing investors looking to catapult off capital growth in their existing properties but perhaps a barrier to investment for first-time investors.
Those looking to make their mark on the real estate landscape for the first time would be wise to turn their attention to Brisbane.
