How to earn $50,000 in 3 years
BUY a house in one of these Queensland suburbs and cut your losses in dud locations and you might just hit the jackpot.
That's the takeaway from new research revealing 15 affordable suburbs where property investors are tipped to make at least $50,000 in three years by offloading underperforming homes elsewhere.
The top five localities are in Canberra, the Gold Coast, Brisbane and Hobart, where investors could be better off by more than $120,000 in three years, according to analysis by sellorhold.com.au.
Bilambil Heights, in the Tweed Heads region, Underwood in Logan and Kuluin on the Sunshine Coast are the top picks in the sunshine state for potential property price growth.
The research analysed suburbs with median house prices between $400,000 and $600,000 in significant urban areas and identified the top and bottom areas for housing forecast growth, taking into consideration selling and buying costs.
Select Residential Property Research Group research director Jeremy Sheppard said holding on to properties with poor price potential could cost owners dearly in just three years.
Mr Sheppard said three of the suburbs with high property price growth forecasts were in southeast Queensland, where housing affordability, location, and access to major employment nodes were strong selling points.
"Not only does the suburb boast water views, Surfers Paradise is also only about 30 minutes' drive away," Mr Sheppard said.
Investing in property in Underwood could make buyers $98,000 better off in three years, while Kuluin had the potential to put nearly $63,000 extra into an investor's hip pocket.
Mr Sheppard said the suburbs with the lowest price growth forecasts were mostly in Darwin and Perth, which meant investors would be better off looking further afield.
"The research showed that vainly holding on to properties in some of these locations could see your property wealth erode every year," Mr Sheppard said.
"Savvy investors recognise that, even after transactional costs, they could potentially be better off by tens of thousands of dollars in a handful of years by simply literally cutting their losses."
THE TOP GROWTH SUBURBS OVER THREE YEARS
State Suburb Median House Price Better off in 3 years
1. ACT Charnwood $439,483 $123,520
2. NSW Karabar $525,599 $122,546
3. NSW Bilambil Heights $559,164 $105,787
4. QLD Underwood $538,244 $97,727
5. TAS Geilston Bay $475,613 $88,949
6. VIC Miners Rest $400,425 $79,644
7. SA St Marys $477,602 $78,955
8. TAS Austins Ferry $404,453 $72,635
9. SA Birkenhead $418,158 $71,945
10. SA Largs North $428,047 $64,039
11. QLD Kuluin $509,258 $62,817
12. NSW Largs $555,042 $60,986
13. SA Croydon Park $468,535 $58,470
14. TAS Old Beach $448,259 $50,958
15. NSW Tenambit $442,552 $50,089