Blacktown has loomed as one of the hottest investment locations in Australia.
The Fast 50 Smart Property Investment report identified 11 spots in NSW as top Australian suburbs geared for capital growth this year.
Property Investment Professionals of Australia (PIPA) director and Destiny Financial Solutions founder Margaret Lomas said Blacktown offered the perfect entry point for savvy investors.
"Blacktown is a classic case of the ugly duckling about to re-emerge and while I don't necessarily see a beautiful swan, I do see good sense investing," she said.
Several other western Sydney suburbs made the list, including Penrith, Macquarie Fields and Ingleburn, while regional locations included Bathurst and the Hunter Valley.
The Smart Property Investment Fast 50 hot spots were selected on the basis of population growth, demand for housing, income levels, employment, vacancy rates, previous capital growth and current gross rental yields.
The report also pointed out that suburbs with major infrastructure projects, resource-rich regions and affordable housing will also underpin investment success in 2013.
Smart Property Investment editor Phillip Tarrant said the Fast 50 report provided investors with a valuable snapshot of which locations currently presented the sharpest investment prospects.
"This is a challenging market right now and if you're looking to make a fast buck without doing your research there's a good chance you'll get your fingers burnt," he said.
"The 2013 report highlights the growing significance of housing affordability and reinforces the investment opportunities located outside capital city markets which have long been considered a safe and sensible investment option."
However, Mr Tarrant said that a growing number of investors were turning to outer suburban markets because of their lower buy-in costs and tight vacancy rates.
"Some of these locations, such as the western Sydney suburbs of Blacktown and Penrith allow investors to enter the market at a reasonable price with the option of adding further value through cost effective renovations," he said.
■ Details: For the full 2013 Fast 50 Report, pick up a copy of the February issue of Smart Property Investment.