If you are a first home buyer or a property investor then take a look at Adelaide's hotspots, Mile End and Port Adelaide in South Australia's for capital growth.
But property investors who want a high yield rental income, it's a better bet to look in the city, outer suburbs or Iron Triangle towns.
A recent survey by Smart Money asked 10 of the state's biggest real estate companies for their views on which areas offer the best potential for property investors.
"Generally suburbs which are closer to the city and beach have provided better capital return over the long term," Raine & Horne manager for Burnside and Norwood, Joe DeConno, said.
L.J. Hooker regional director Rod Adcock said Mile End and Port Adelaide were "under-valued, close to the CBD and mainly comprise properties that would respond to update and improvement, therefore with potential capital growth".
Other capital growth hot spots include North Adelaide, Stirling, Payneham, Norwood and Brighton. No suburbs on the capital growth list made the high-yield list. "You are not going to get high yields in low risk areas," said Elders City Plus managing director Robin Turner, who recommends investors put capital growth above yield.
Mr DeConno said outer lying suburbs give better rental yield as purchase prices are lower.
"Some of these suburbs have recently also provided excellent capital growth, but this may not be as consistent as some of the inner suburbs are," Mr DeConno said.
Apart from the city itself, the best areas for yield include Elizabeth, Hackham, Whyalla and Port Pirie.
Professionals SA chief executive Ted Piteo said the city benefited from the growth of accommodation for overseas, interstate and country students, and more young professionals were moving to the CBD.
"Inner-city living represents great value for this market because of the proximity to all their required facilities," he said.
Mr Turner said pressures such as water restrictions and high fuel costs were making city living more desirable.
"A lot of ageing baby boomers are now looking at the city lifestyle," he said. So what is the best type of property to buy? Apartments, townhouses, units or stand-alone houses?
The answers varied widely among real estate agents, but bigger properties able to be subdivided were a popular choice.
"Land is the scarcest of commodities," Mr Turner said
Source: The Advertiser South Australia
