In today’s show Margaret Lomas, from Destiny Financial Solutions, takes a look at the suburbs around Australia that are ‘coming to life’ in terms of future growth. She says don’t overlook Melbourne just because there is a lot of talk about oversupply. She tells us why.
Kevin: A few weeks ago, I was talking to Margaret Lomas from Destiny Financial Solutions and suggested then that it might be good for us to get together again and have a talk about some of the suburbs around Australia where Margaret is seeing good growth or good potential – or what I tend to call, Margaret, suburbs that are coming to life.
How are you?
Margaret: I’m good. Thank you.
Kevin: Good, and, of course, your show on Sky TV, Property Success with Margaret Lomas, going very well.
Margaret: Yes, absolutely. We’ve started the new season, and it’s always great to be in a new season. It’s Seven years now, so I think the viewing public are quite enjoying it.
Kevin: Yes, it’s great, and I’m always delighted to be a part of it, too. Margaret, thanks for involving us in it, too.
Which suburbs are you seeing coming to life around Australia?
Margaret: Look, let’s start down in Melbourne because I know people are a little bit concerned about Melbourne at the moment because of the oversupply of apartments in the city, and they’ve got every good reason to be concerned about that. There is an estimated 85,000 apartments that are going to come online within the next seven years, and that’s just in the CBD alone, so you can imagine what that’s going to do to that market.
It’s going to flood it with properties, but it’s also going to flood it with rentals. So even if you manage to maintain the value in the properties you’re buying, you’re not going to see a very good rental yield because there are just going to be too many of them on the market and available.
I like a couple of the suburbs that are out in the southeast, and the reason I like those properties is because there are a couple of areas there where we’ve really seen a bit of a demographic shift in the number and size of families that are living out there, and we’re also seeing the local councils responding to that shift in demographics with a whole lot of infrastructure, including things like those big shopping centers, the big home buyer centers, plenty of facility and amenities.
The places I’m liking at the moment include Cranbourne – that’s Cranbourne North, Cranbourne West, and Cranbourne itself. But I also like Carrum Downs, which I think is one that’s stuck in there behind Seaford, just down from Patterson Lakes, and it’s a lot cheaper than those two areas, yet still close enough to some of those main arterial roads that lead back into the city.
Kevin: Excellent. I hadn’t heard of that one before.
Margaret: I know. I’ve always got properties or areas that you haven’t heard of.
Kevin: I know you do. You’re a surprise packet. Where to next?
Margaret: Okay, next is up in your stomping ground. Now, I’ve been liking, of course, Deception Bay for quite some time, but I think what’s happening up in Deception Bay is it’s running just that little bit hot because a lot of people are looking there.
So I’m moving out toward Rothwell – which is a little south of Deception Bay, and that’s not quite as overheated as Deception Bay at the moment – but also down into Mango Hill. Mango Hill is right there on the main road, the Bruce Highway leading right back into the city.
You can still get into the mid $300,000s there with good rental yields of around about 6%, and because of its proximity back on to that freeway, I think what we’re going to see is an issue like we have here on the Central Coast where we have Kariong, and it’s a suburb that always does really well because its situated right there on the main freeway back down into the city, so I’m really liking that.
To a lesser extent, Kippa-Ring – up around that area is another area that I think is going to be one that people really should watch.
Kevin: Yes, that Redcliffe Peninsula is a real surprise. There are some great properties up there, and the lifestyle is so good, too, Margaret.
Margaret: Not a surprise to me because I always knew that Redcliffe, years and years ago, would do really well. All you had to do was go there and see what kind of a lifestyle you could have and know that it’s only about a 17-minute drive back to the airport to know that it was going to do well.
But often when something is right before you know, it’s difficult to see the opportunity – and that includes areas like Cranbourne and the places I mentioned down and around Melbourne. The locals always look at those areas with disfavor and don’t think they’re going to do very well. But if you’re coming from outside of the area, you don’t have that same prejudice with you, so it’s much easier to see all the positives rather than the negatives.
Kevin: Excellent. There’s a snapshot for you on a few properties for you to have a look at from the expert Margaret Lomas at Destiney Financial Solutions.
Margaret, thanks again for your time.
Margaret: Thank you.