Where is the best place to invest in 2025?
We have tasked our data science team to uncover the top ten places to invest in property in 2025 to 2026. They came up with the following list based on criteria such as strong cashflow, suburbs with greater than 15,000 people, a low renter to owner ratio (less than 40%) and a price point of less than $900,000.
The modelling was undertaken with an understanding that the three percent buffer placed by APRA is a significant constraint to property purchases, and that the median household income of $160,000 is broadly reflective of the borrowing capacity required to purchase a property investment of around $750,000.
They also noted that the holding costs of Victorian property are much higher than any state due to the state government placing a significant tax burden on investors.
It is apparent that Federal government policy and availability of housing has skewed settlement away from traditional areas such as Sydney and Melbourne, and this has pushed to Perth, the Gold coast and the Sunshine Coast. Areas in Victoria are cheaper as the long run holding costs are significant leading to reduced investor appetite. In fact most areas of Victoria have now stagnated due to the significant impost by the state government. This is broadly reflected in ongoing negative business sentiment in the state owing to higher than normal tax rates across all segments of the economy.
Federal government policy dictates that Areas outside of Sydney, Melbourne and Brisbane are classified as designated regional areas for migration purposes.
We have been fielding a large volume of enquiries looking to sell their Melbourne properties as the yield on a cashflow, and capital growth basis no longer makes the investment viable.
The top ten list for places to invest in 2025 is below:
- Gosnells, WA 6110
- Werribee, VIC 3030
- Ellenbrook, WA 6069
- Morley, WA 6062
- Thornlie, WA 6108
- Frankston, VIC 3199
- Ballajura, WA 6066
- Tarneit, VIC 3029
- Pakenham, VIC 3810
- Craigieburn, VIC 3064
What does this tell us about the best places to invest in property in 2025?
This list is broadly reflective of two things, a market in Perth that is catching up, and a market in Melbourne that continues to fall (for 2 very different reasons). This list though is only useful IF you do not include the carrying cost of investing in Victoria due to tax and the Perth mining cycle. If we remove these areas (or weight them with the risk that they deserve) the top ten property investment locations transforms considerably.
In fact the list is not only unrecognisable, but is more achievable for most potential homeowners and renters, and is more likely to yield a positive outcome.
What to do now?
If you are looking to purchase another investment, our team has done some deeper analysis noting these 2 issues, and has identified a better and more comprehensive list of suburbs that satisfy the same criteria, but carry much less risk.
Of course if you are looking to lock in your profits then we will be able to help maximise your sale price.
If you would like access fill out the contact form below and we will shoot over our report.
