Imagine this: You’ve got your eye on a charming Art Deco apartment in a blue-chip suburb—close to the beach, trendy shops, and buzzing cafes, or maybe that’s your current situation, pretty good, right?
Here’s the kicker: While you might love living there, that doesn’t necessarily make it a good investment, particularly if you’re serious about building wealth through property.
Blue chip suburbs come with hefty price tags. This means higher entry costs, lower rental yields, and often significantly more cash out of your pocket to maintain the property. While these “lifestyle locations” might seem stable, their growth and potential for investment return, is typically not feasible due to the sheer cost of entry.
The Growth Suburbs Advantage: Maximise Your Portfolio
Growth suburbs are areas where the median house price sits below the city average but are positioned for substantial growth due to infrastructure development, population growth, and affordability factors. Over time, as demand in these growth suburbs increases, so too does the suburb price tag and your investment return.
Investing in the right property at an affordable entry price in a growth suburb, minimises your out-of-pocket expenses and proves an opportunity to buy multiple properties all for the price of one blue chip property.
What’s more, the rental yields are often higher in growth suburbs, meaning the properties are more likely to be self-sustaining or even cash-flow positive – key to holding multiple assets, and building a property portfolio.
Still charmed by the art deco details and delicious cafes of inner city living? At OpenCorp we are seeing a huge shift and momentous popularity to rentvesting. As the price disparity between inner-city and outer suburban areas continues to expand, it is increasingly difficult for even well-off buyers to purchase in prime “lifestyle locations” without stretching themselves too thin.
Rentvesting is a strategy inner-city-loving Australians use when they want to enjoy the lifestyle benefits of living in a desirable area without compromising their financial future.
By renting in a blue-chip postcode, you can enjoy the benefits of living in a desirable location without the financial strain of buying there. Meanwhile, your investments in growth suburbs are working hard for you, generating returns and building equity over time. It really can be the best of both worlds for your today and long-term wealth strategy.
Check out OpenCorp Client’s Matt & Christie Bull’s recent conversation with realestate.com.au on their property investment journey, that has allowed them to love where they live, while investing in properties in growth areas, focussing on high rental yields and capital gains!
Want to understand more on wealth creation through buying in growth areas? Watch this video with OpenCorp’s Cam McLellan and Michael Beresford discuss this concept.
Navigating the world of property investment and optimising cash-flow, in how to make this work for you? Read our latest guide.
Or simply, book a discovery call with one of our investment consultants today! We’re here to help.
