Thursday, 11th February 2016
When is a hardware store more than a hardware store?
Bunnings coming to town is more than just having somewhere to go and buy your new lawnmower - it's an indicator of property prices about to boom. Experts in studying demographics and zoning laws, the guys in the office behind the scenes of Hardware Aisle 1 won't invest anywhere but an area on the move. It's a bit like the age old analogy of 'If you build it, they will come'.
Often Bunnings - and McDonald's, Aldi, Coles, Woollies too, for that matter - will buy property in an up-and-coming area, sit on it for a couple of years as the population grows, then develop once the time is right.
What this means for you as an investor
The problem for an investor is that you're not always in the know about where larger companies are going into next. This is when it pays to work with a Property Portfolio specialist such as myself. We have access to high quality research which indicates where a new hot spot is likely to be. These reports are based on industry information including zoning changes and potential developments, none of which is at that stage available to the public.
Get in first with timely advice from a professional
By the time demographic and rezoning information is freely available to the public, prices have started to go up. While you will still have access to better prices, the buying opportunities are richer earlier in the peace. If you're looking for your next investment, it's best to engage a professional so you can get in on the ground floor - before Bunnings opens and pushes the prices higher.
Until next time,