A property expert has warned investors chasing high-growth suburbs could be sabotaging their portfolios.

Custodian managing director James Fitzgerald said investors would be better served by taking a long view to the market.

“When weighing up an investment decision and property options, you will inevitably have to choose a balance between growth prospects and cash flow,” Mr Fitzgerald said.

“Properties with higher growth will typically have weaker cash flow, and vice versa.

“Investors would be wise not to get sucked in by the high growth prospects of suburbs and properties that will present a cash flow burden – particularly in this environment of high interest rates.”

A four-bedroom house at Caboolture listed at $849,000

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Mr Fitzgerald said this balancing act was particularly important given the cyclical nature of the property market.

However, many investors sold up after six to seven years and therefore missed the opportunity to benefit through full market cycles.

“The longer you hold a property, the better you will do,” he said.

Mr Fitzgerald also said buying a house over a unit was usually a better long-term investment.

“Land with a house on it will always grow more than apartments and townhomes because land appreciates while buildings depreciate over time,” he said.

This four-bedroom Ripley house is listed with a $839,000 price tag

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“That’s why we’ve always encouraged people to invest in house and land at the affordable end of the market – at or under the median house price in a given city.”

He highlighted top picks in Queensland where strong demand for housing had fuelled significant growth.

“The Caboolture West precinct, although coming off a low base, will see its population increase by more than 15 per cent per annum, compounding over the next five years, which is about the fastest population growth you’ll see in Australia.”

West of Brisbane, areas including Ripley, South Ripley and Deebing Heights were also highlighted for their expected population growth rate of 10 per cent per year – more than five times the Australian average.

Managing director of Custodian James Fitzgerald

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These rapidly growing areas were not only attracting new residents but were also being supported by job opportunities and significant future infrastructure upgrades planned by state and local governments.

“Both Caboolture and the Greater Ripley area are serviced by a lot of job opportunities, as well as significant future planned infrastructure upgrades,” Mr Fitzgerald said.

Despite the promising growth in these regions, the average investor’s short holding period was often driven by financial strain rather than strategic planning.

This Deebing Heights home was the most viewed property for sale in Qld

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“While unforeseen circumstances can sometimes force a sale, the majority of the time it’s because investors don’t manage cash flow effectively.”

Higher interest rates had placed additional pressure on investors who may have overextended themselves by prioritising growth over cash flow.