There is a myth that perpetuates in property that the best areas for capital growth are only found close to the city. Well let's have a look at the long term trend for some inner city areas of Brisbane.

Fortitude Valley 4.7%
Chelmer Brisbane 6.2%
Grange Brisbane 6.5%
Spring Hill 6.9%
Hamilton 7.0%
South Brisbane 7.0%
Ascot 7.1%
West End 7.5%
Red Hill 8.1%
Paddington 8.4%
Milton 8.6%

Now compare that to some of the outer lying areas:

Carole Park 15.6 %
Woodend 14.1 %
Booval 14.0%
Dayboro 13.9 %
Gailes 13.5 %
Kingston 13.5%
Riverview 13.5 %
East Ipswich 13.4 %
Inala 13.4 %
Eagleby 13.4 %
Woodridge 13.2%.

Some fairly substantial differences. But the real kicker is when you consider the impact of compound growth.

A $400000 property with an average growth rate of 8% will grow to approximately $755,000 over 10 years.

A $400,000 property with an average growth rate of 10% will grow to approximately $907,000 over 10 years. That's a $152,000 improvement for no more outlay.

Investing with your heart and not your head will limit your opportunities.