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https://www.youtube.com/watch?v=_lMnvaDCPQ0 We are often told to get the best capital growth we should buy the more premium and expensive suburbs and avoid the cheaper suburbs.People things suburbs are cheap for a reason and are going to stay cheap. But is this actually true? Do cheaper suburbs actually underperform compared to more expensive suburbs. Cheap Markets Are Not Under-Performers (Article Link) Select Residential Property DSR Data 0:00 - Introduction1:23 - Why are cheaper suburbs cheaper2:59 - Cheap vs Expensive Growth Australia Wide5:26 - Cheap vs Expensive in Regions7:00 - Cheap vs Expensive in Smaller Regions8:30 - Cheaper suburbs always perform better no matter which way you look at it9:05 - Cheapest vs Cheaper vs Dearer vs Dearest12:00 - Cheap vs Expensive in Major Capital Cities13:17 - Looking at Deciles15:00 - Looking at a 40 year period16:30 - Cheap vs Expensive Yield17:13 - Why buying cheaper properties could be better than more expensive properties Recommended Videos: Do Properties Near The CBD Actually Get More Capital Growth? (Property Data Dive) Transcription Ryan 0:00We're often told in order to get the best return on investment when buying property that we should buy the more expensive suburbs, the more premium suburbs with the idea being that people in the suburbs maybe have more money. And so I know property's going to grow faster. But what about cheap suburbs? People often think, okay, they're cheaper reason, and they're probably going to stay cheap. But is that actually true to cheap suburbs, underperformed compared to more expensive suburbs? Or is the opposite actually true? So today, I have with me, Jeremy Shepherd from select residential property to actually look through the data and to say, should we be investing in the more expensive suburbs? Or should we be investing in the cheapest other? So hey, Jeremy, thanks for coming on today. Jeremy 0:43Thanks for having me. Ryan 0:45Yeah, this one is really close to home at the moment, because I have saved my deposit, I'm looking to invest in the next few months, three to six months, and looking at different options in South Brisbane for me, but there's the cheapest suburbs, you know, kind of around $350,000 that I can get into with a lower deposit, or there's more expensive suburbs looking at 450 to 550, where obviously, I need a bigger deposit. And so I'm kind of arming an iron between the two. So it'll be interesting to go through this and to see, okay, what could be better? Jeremy 1:19Yeah, well, first of all, they don't underperform. So they're cheap for a reason is true. They are cheaper because they don't have all the nice things that the expensive suburbs have. But that doesn't mean that they underperform just being expensive, doesn't mean that you've had better capital growth. And I think that there's this mistake, mistaken belief that if a suburb is expensive, how did it get there, maybe it had better capital growth, but it's always been more expensive. And there's this correlation between proximity to CBD and higher prices for suburbs close to the CBD in the map, major capitals more expensive than the suburbs get. But they've always been like that they've always been more expensive. And as property investors were not interested in whether our properties is is cheaper, expensive, but whether it has a capital growth, that's the that's what we're after. Ryan 2:11And exactly right. Because let's say I'm going to invest a million dollars over the next couple of years into property or buy a million dollars worth of property, I could buy three for around, you know, $330,000 each, or buy two for 500,000, or one for a million. But what I hear at the end of the day is how much they go up in value. I don't care about the individual property price and its ROI. You know, I think one of the best videos we've done together is whether or not proximity to the CBD does correlate to higher capital growth.