"There's more to consider for capital growth than just the suburb", according to Grow Consulting Group managing director Ayda Shabanzadeh. While the Brisbane suburbs of New Farm, Newstead, Kelvin Grove and Woolloongabba have demonstrated good potential for capital growth, Shabanzadeh advised buyers to also be clear on their purpose for buying and their future goals.
"It is surprising how many people think it is just about buying something, without knowing what they want to achieve, they don't think about the property itself or the re-sale market for the property they are buying," she said.
The affordability factor was also crucial for investors to consider, she said. "You need to know that you can hold on to the property through good and bad times and reap the long term benefits without feeling stressed. Once people have worked out why they are investing and what they can afford – they are ready to start looking for properties that meet their current and future needs." including capital growth.
Investors should also assess the property purchase on the rental return, cash flow and quality of tenants it will attract. "They also need to be aware of long term capital growth but understand it's not just about the locality – the property itself is so much more important. Another thing that needs to be considered is whether the property offers depreciation benefits when it comes to tax," she said.
Proximity to local transport nodes, amenities and employment were also an important factor, as people want to feel connected to their community, said Shabanzadeh.
"And, of course, property within close proximity to water, such as the river or beachfront, is always desirable." Demographics, population, housing patterns, cycles, financial trends, the economy and the housing market were also suggested as important considerations when buying a property as well as capital growth.
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