4 reasons why the suburbs are attractive to property investors

4 reasons why the suburbs are attractive to property investors

4 reasons why the suburbs are attractive to property investors

Location is one of the most important factors to consider when investing in property.  Even within the same geographical market, certain locations offer better investment opportunities, in terms of real estate, than others. Suburban markets have become increasingly popular to investors especially for residential property.


Here are four reasons why suburban real estate is attractive to property investors.


  1. Growth Potential

The population in the suburban areas is growing rapidly especially due to migration. Most migrant families and students tend to move into the suburbs and as nearly 60% of population growth in Australia is fueled by migration, the suburbs are in high demand.


Cost of living in the suburban areas is generally lower than in the city centers, which makes it attractive for young families, migrants and students to settle in. A good proportion of the suburban population are part of the workforce which means that they have steady income and can afford to pay rent. The population growth has spurred on a spate of new dwelling construction project as well as other infrastructural development in the suburbs. As the number of renters increase, there will be increased demand for rental properties which make it an ideal location for property investors.


Growing population, low cost of living and good quality workforce are all contributing factors to economic growth, ensuring that these suburbs are ideal for long term property investment.


  1.  Affordable Investment Property


Property prices in the suburbs are generally more affordable than those located in the inner cities. Most first time property investors tend to avoid the inner city properties as they cannot find affordable investment properties. Of course, the median property prices vary across the different states and cities. Property prices in Sydney and its suburbs will be higher than those in Adelaide and Hobart suburbs.


  1. Low Vacancy Rates


Vacancy rates are an important factor to consider when deciding to purchase investment property. Those living in the suburban areas are more likely to stay for longer periods than those in the central business districts. Rental properties in the suburbs generally have a lower vacancy rate than those in the cities where there is more frequent relocation. The growing demand for rental properties in the suburbs also influence renter’s decision to rent out for a longer period.



  1. Higher Rental Yields


Investing in property in the suburban areas can prove to be highly profitable to investors. The combined factors of high population and economic growth, increasing demand for rental properties and lower vacancy rates allow the property investors to raise the rental amount they charge. They can benefit from a substantial rental income that will offset expenses related to investment and generate a positive cashflow.



Suburbs are an attractive - and affordable - investment location for property investors. The scales of returns and attractiveness for investment differs among the different suburbs across Australia. Suburbs in Melbourne are performing well in the property market and are in high demand. Property investors could benefit from expert property investment advice and guidance when choosing the most suitable location to invest in.

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