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How to identify a growth suburb

How to identify a growth suburb

So you are thinking about getting into investment property or buying your next one but are unsure where would make a good investment. If this sounds familiar then no doubt people have told you to simply do your research. But do you know what you are supposed to be researching?

Here is a list of common things you should look for to get started:

1. Close to the city
It makes sense that properties located a short commute from work will always be in demand. However this is fairly obvious so anything within a short distance from the CBD is usually already expensive. However if you can find an undervalued place then snap it up! There is unlikely to be a shortage of tenants and you can safely expect the value to rise.

2. Facilities
People want to live next to what they need in terms of work, family and lifestyle. For example, quality education is usually a key consideration for parents so if there are good schools in the area, naturally they will be willing to pay more to live there. The same applies for public transport and main roads, to ease commute, as well as shopping.

3. Desirability
Close your eyes and think about all the attractions you would like in the suburb you live which may not be necessary but would be nice to have. Most of what you are dreaming about, other buyers wish for too. Added up these increase the demand of a suburb and, ultimately, it’s price. Such features could include parks, eating establishments or a recreation centre.

4. Upcoming Developments
Find out what is currently or planning to be built nearby. This is important for two reasons. Firstly, it helps avoid the trap of buying into an oversupplied region. If there are a few big apartment blocks in construction it may be wise to look elsewhere. Secondly, there may be projects that will be beneficial to the area. By getting in early you could capitalise on these before everyone else realises they wish to live near them.

From here you can look at the prices in the area to establish a good idea of what properties are worth so you know a bargain when you see one. Of course this is just a starting point and the more research you do the better the chances are your investment will be a success. We will provide more tips in our future blogs so stay tuned!

If you have found a property then speak with one of our brokers today and they will investigate your finance option 9242 3300.