Ahhh, the first day of winter has arrived and brings with it a season of change. This is a time to reset, a time to regroup and recharge but also a time to review. With the EOFY fast approaching, now is the time to get all your ducks in a row regrading depreciation of any investment properties you have. (If you don’t have a schedule, organise one with us today).
However, today let’s talk about identifying Growth Suburbs… and what to look for.
We’re living in a time where there is so much uncertainty. Each day we’re reading headlines that fill us with doubt. But there are countless experts in the field who say otherwise. Focusing on what the experts are saying about our current market and what factors to consider when investing will guide you on the right path. Let’s be honest, the media is not an expert!
One of the factors to consider when searching for that ideal investment property is to identify potential growth within an area. But how do we spot these growth suburbs?
Ever taken a weekend trip somewhere you’ve never been before? Found a lake or a beach to stroll around while the rest of the family are attempting to do some fishing?
And you get that feeling like you could do this. You could live here.
However, I have seen countless investors fall into a common trap of purchasing an investment property where they holidayed. It seems like a good idea at the time but none of the other important factors were considered.
This is why it’s so important to get advice from a Property Strategist before purchasing one of these investments! Always look at these considerations from the eyes of a tenant.
Does your suburb have a beach close by? A park within walking distance? What other recreational activities does it offer? When determining the “lifestyle” your tenant wants to enjoy – are we focusing on young families with children or professionals who love night life?
A growing population is often another sign that a suburb is in demand, particularly if the population growth is higher than the regional average. This can be an indication of new job opportunities, increased housing demand, and improved infrastructure. Speaking of infrastructure, look out for suburbs with new or improved infrastructure or development projects, such as new roads and transport links, schools, hospitals, shopping centers and any residential developments. These have the potential to attract new residents and businesses and increase property values not to mention that they can also be indicators that the suburb is set to experience growth.
Another tip is to analyze recent real estate market trends, such as median house prices, rental yields, vacancy rates, and days on market. This can help you identify suburbs that are experiencing strong demand from buyers and renters. Be sure to look for suburbs that are affordable but have the potential for growth. Avoid investing in suburbs that are already overpriced or in a bubble.
Overall, a thorough analysis of these factors can help you identify growth suburbs for you to consider for your next (or first) purchase. Listen to the experts, do your research and as always, I am here to answer any of your questions, just give me a call on 1300 736 754.