Hot property

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We're told investing in property is generally a safe bet, but pinpointing the area that will give you good capital growth and a return on your investment can be difficult.

Matthew Liddy from Property Investor Magazine consulted the best property brains in the country to come up with a definitive list of 100 of the best suburbs to invest in.

"What we are starting to see is a bit of a recovery in the property market and we are starting to see up-graders moving into the market and investors again coming back as well," Liddy said.

"There are lots of different factors that can produce a hotspot. There are things like new transport infrastructure going into an area, there is also things like urban gentrification."

"You've got things like population growth. So if you have got an area that is booming in terms of it's population, then obviously that is going to drive demand as well."

• Related: Home loan calculators

RP Data's Tim Lawless says auction clearances are up, suggesting a renewed confidence in the market, particularly in the southern capitals.

"Over the last fifteen weeks we've seen clearance rates around Australia higher than 70 per cent. In Melbourne they have generally been above 80 percent, Sydney, somewhere between 70-75 per cent," Lawless said.

So which suburbs are set to to boom? In Western Australia, Geraldton tops the list.

"WA is obviously a little harder to pick a hot spot at the moment because the property market is in a different faze in the cycle to the East coast, but one of the areas that is tipped to do well is Geralton, it has a more broad based economy rather than just being based on pure mining," Liddy said.

In South Australia, Thebarton, near the heart of Adelaide City is a standout.

"One of the reasons that is looking to go ahead is a new light rail system that is going in that direction, so there are stops in Therbarton and then heading out to Port Adelaide," Liddy said.

Ceduna, Glenside and Hindmarsh also make the top 100. In Victoria, Melbourne's northern suburbs are the safest bets.

"We've got Faulkner, Coburg and Carlton all in the inner north. In the northern suburbs of Melbourne (and that area is that little bit more affordable), you are heading north rather than heading south and you get that little bit more property for your dollar," Liddy said.

Footscray in Melbourne's inner west is a suburb earmarked as a transit city under the Melbourne 2030 planning strategy.

In New South Wales Liddy identified 26 hot locations, most in and around the city.

"Sydney is the area that is tipped to lead the turn around," said Liddy.

"There is actually quite a few suburbs around Leichhardt and Newtown named on the hot 100 list this year, so basically, there is a real lifestyle attraction to that area and it is a lot more affordable then say the eastern suburbs of Sydney."

Not to say property in Sydney's eastern suburbs is no longer regarded a solid investment.

"The Eastern suburbs is one of the perennial performers in Sydney. I guess some of them are the top end suburbs that may have struggled over the last twelve months and some of those are seen as well placed for a rebound because the demand is going to be here as we go into recovery mode."

In Queensland, access to transport is the key to a number of Brisbane's hot spots.

"Places like Albion and Kedron are tipped for good growth because there is new transport infrastructure in the area. You've got the northern busway going in and also the airport link," Liddy said. "Keperra has been seen as a good strongly performing suburb it's got good access to transport that's one of the key things for the area."

In the Northern Territory you'll have to be quick to get into Rapid Creek, and if you're investing in Tasmania, Clarence City is the Apple Isle's number one pick.

So what's the best of the best? Well property expert and Hottest 100 judge Terry Ryder has identified his top five.

Newcastle, NSW
Geraldton, WA
Gympie, QLD
Port Adelaide, SA
Mornington Peninsula, VIC

"If you can get behind all the negative headlines and get out there and become a buyer you are not going to have much competition," said Ryder.

A note of caution however, you'll still need to exercise some shrewd judgment when it comes to selecting a property to invest in.

"One thing to keep in mind is that not every property in these areas is set to boom. You still have to choose the right property and you also still have to do your due diligence and research as when you are buying any sort of investment," Liddy said.

So too, many are predicting at least another two interest rate rises before the end of the year.

Links and information

Australian Property Investor

www.apimagazine.com.au

The 100 Australian hotspots:

ACT:
Dickson
Gungahlin
Red Hill

NSW
Branxton
Bronte East
Coogee
Dulwich Hill
Enmore
Granville
Gunnedah
Haberfield
Hurstville
Kingsford
Leichhardt
Lidcombe
Newcastle
Newtown
Northmead
Oatlands
Oatley
Paddington
Randwick
Redfern
Roseville
Shoalhaven
Surry Hills
Sydenham
Thornleigh
Waitara
Zetland

NT
Rapid Creek

QLD
Albion
Alderley
Ashmore
Beaudesert
Gulliver
Gympie
Ipswich
Kedron
Keperra
Kingaroy
Manly
Minyama
Newstead
Redcliffe
Southport
Stretton
Woody Point

SA
Ceduna
Christies Beach
Glanville
Glenside
Greenhill
Hindmarsh
Largs North
Marino
Mile End
North Adelaide
O'Sullivan Beach
Port Adelaide
Taperoo
Thebarton

Tas
Clarence City
Hobart
Lutana
Mount Nelson

Vic
Abbotsford
Box Hill South
Carlton
Chadstone
Cheltenham
Coburg
Elwood
Fawkner
Flemington
Footscray
Frankston
Hastings
Inverleigh
Kew
Laverton North
Melton
Mornington Peninsula
Narre Warren
Point Cook
Port Melbourne
Portland
Redan
Reservoir
Seaford
St Kilda West

WA
Bassendean
Bunbury
Cottesloe
Geraldton
Hamilton Hill
Joondalup
North Beach
Scarborough
Thornlie