In any market, home buyers and investors should target suburbs primed for strong future growth that avoid the ups and down of the property cycle.
It could have planned government infrastructure developments, gentrification potential, or if it is already established, have limited scope for mass redevelopment – this means it avoids any potential over-supply.
It is typically a suburb that has lots of renovations going on and some focal points around cafes and shops.
It’s a suburb where the demographics are driving demand – lots of families or professionals or it can be a “hipster” suburb with a cool vibe, plenty of eateries, bars, entertainment precincts, art galleries and parks.
Find out how many properties sell each year in the suburb, why people move in or move out, the demographics and trends including unemployment, the percentage of owner occupiers vs investors, median price changes and auction clearance rates and most importantly any likely increase in property supply forthcoming.
Location drives value
The same type of house can be worth a million more in another suburb depending on where it is located and its proximity to amenities. People highly value proximity to shops, schools, transport, entertainment, cafes, restaurants, sporting facilities, parks, bushland, beaches, water, etc.
Don’t catch paralysis of analysis
Some people really are just too clever for their own good and think they can assess everything themselves but it can be a waste of time over-analysing the obvious things. There is no doubt you must complete sufficient due diligence buying a property – it is the most expensive asset you will buy – but when the research is done and the boxes ticked, it’s time to hold your nerve and move forward.
Early bird gets the worm
Searching for property is an arduous process when you have so many other demands on your time, but persistence pays when researching and shortlisting. You need to have a systematic approach to searching the market and be able to quickly assess which properties are worth inspecting and which ones are duds.