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Ben Kingsley

15/09/2014
Blog post by Ben Kingsley

Which is the best state to invest in?

As a property investment analyst and qualified property investment advisor, I’m often asked which is the best state to buy property in. But that’s not necessarily the best question. There are over 9.4 million dwellings across Australia and those numbers increase around 130- 160,000 new dwellings every year. So on average, every week there’s over two and a half thousand properties coming onto the property market. If you compare that to the Australian Stock Exchange there’s only around 2,200 stocks to choose from. So with such a big market place state versus state really is irrelevant. What you need to understand when you trying to learn the science of getting a good property investment return is where is the true demand happening in that locality.

So in other words if you’re looking at Sydney, bear in mind that they’re still opportunities within the Sydney market place. If you’re looking at Brisbane, where do the opportunities present themselves in that marketplace at that time. And of course Melbourne as another big city, is where are those opportunities as well. Every city is going to have opportunities for you. How you drill down is you need to come to the basics: supply and demand.

Where is the tight supply and where is the strong demand. How do you work out those?

Supply, you can look at what’s coming up regards to the ABS showing building approvals and what’s coming online and if you’ve got a limited land supply, the other thing you need to look at is how is that that supply going to increase? Is it going to be through medium or high density units coming on. If you’ve got a lot of vacant land, well there’s little supply issues so you going to see some challenges around capitol growth in that particular market place. On the demand side some other key indicators or leading indicators are things like clearance rates. So watching the suburbs in terms of how they are clearing and then looking at generally about days on market and the overall stock on market available. There are some great indicators that will start you on your journey to working out with the best areas to buy and then fine tuning to try and identify the most appropriate property in that particular area. All the best with your investing.

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