It might appear that some investors have the knack to predict the next property hot spot….but the truth is, in most cases they are methodical and detailed in their approach to buying. By analysing the market, getting a feel for the local area, talking to experts and considering their ‘must-have’ list they increase their chances of making an educated decision.
There are some tell-tale signs that can indicate when a suburb or region is about to experience a property boom. After all, timing the purchase of your investment property with the market conditions will be beneficial in the long run for your returns. But how do you research the market?
Market Analysis and reading the signs
From a local perspective, your local agent can provide you with an in-depth local market report detailing the strongest growth areas, most traded and fastest selling areas, the top performing local suburbs and a snapshot of houses and unit sales, median sale price, rental yield, days on market and more.
Get a feel of the area
You should wear out some of your shoe leather and view the suburb in person and talk to a few locals. By walking through the area and attending a few open homes, you will be able to get an idea of the people that live there and what the properties are like. It is equally important to consider suburbs that are within the zones of high-performing schools and suburbs with good public transport. The 2016 Census revealed that more than 71 per cent of households are families, which means it could make sense to buy a property investment in an area that will appeal to the vast majority of Australians!
Given the majority of properties are promoted on-line this is a good a place to research the market. Head to realestate.com.au, domain.com.au and review the current property listings and recently sold listings in the suburb/areas you are interested in. This will help give you a feel for the local market, how many properties broadly fit your needs, what sort of prices they are selling for and what has been sold recently.
Proven property investment ‘must-have’ success factors
When assessing a potential investment consider these factors. Having three or more may increase the chances of making a good investment decision.
- Proximity to the beaches/waterways
- Trendy cafes, restaurants and shopping centres
- Nearby facilities like good schools, hospitals, parks and transport
- Has the neighbouring suburb boomed as there may be a future ripple effect in the surrounding suburbs
- Good public transport infrastructure
- Well positioned suburbs that may have been shunned by property buyers as run down and old
Speak to a real estate expert
At Define Property Agents we live and breathe real estate and are a great source of insider knowledge – much of which you wouldn’t discover alone, make sure you contact us and ask about the local market or come and visit us this weekend at one of our open homes!