You see the articles day in day out in investment property magazines and online, telling investors where they can buy next to best achieve high growth in property investment. I’ve always been quick to tell people to steer clear of hotspot-spruikers, because the hype surrounding the hotspot usually means that the time to buy has already passed… Sure, I know that there are times when it’s acceptable to buy property in a certain area if it looks like something of note is going to happen, like an infrastructure boost or industry-related boom (see any mining town property price spike for examples!) and in this case it’s something that investors are usually onto through research and conducting due diligence. Researching areas for growth can be a great way to find property that will experience great returns, but you need to find them by doing the work. Buying in high growth areas is great – provided you know what you’re looking for and how to do it. What I’m saying is that it isn’t the best strategy to follow hotspot reports in the media and then buy property based on what others are saying, because by the time a ‘hotspot’ hits the media it’s usually been around for a few months and everyone has hopped on that bandwagon already. What I’d like to share is: How to identify areas about to see a growth spurt Identifying high-growth areas has become a super-competitive element to property investment. Everyone wants to find the next boom town and buy up big, so here’s a few tips on how to identify possible high-growth areas. 1. Look for areas that are undergoing gentrification What’s gentrification? Any area where it used to be not so family friendly, but where you’re now seeing more families moving in. Top Tips Look at affordable areas in regions that you are interested in Look at property prices over the past 2-3 years If price growth is steady, look for younger professionals with good incomes – as this is usually a sign that the area is about to gentrify Look for renovations or new buildings Keep an eye out for new cafes and lifestyle stores 2. Look for the ripple effect If you’re keen to get into a particular area but think you’ve missed the boat you can get into a surrounding suburb. This approach needs good timing, so you need to know what stage of the property cycle the suburb is in to get maximum results. Top Tips Check property value by looking at surrounding price. If the difference is more than 5%, chances are they’re playing catch up! Watch median property trends. Set up alerts for surrounding suburbs to stay up to date. Look for properties within your budget that are as close to the growth as possible. Try to buy within 10km of the city centre, as you’re usually pretty spot on for growth with properties within this band 3. Look at the state of supply and demand Supply and demand is pretty much everything for growth past a certain point. If there’s no more capacity to build you can be pretty certain that prices will continue to rise. Top Tips Look for areas where the rental yield is rising. People usually tend to buy in the same area they rent, too. Look at the demographics of people in the area, and at the average rental income of the people in that area. People with better financial situations are one of the usual driving factors for gentrification. Look for population rising in an area. While population in itself isn’t enough to drive prices higher it can when combined with other indicators such as rising income and low supply. 4. Look for large infrastructure being built The area might see a spike as workers come to the area for jobs. So is there a perfect investment market? Well, no. The perfect investment market doesn’t really exist, but great investment properties can be found in any market! Plus, it doesn’t matter how amazing the property might be, or what kind of hot spot it’s in if it’s out of your price range, so always make sure you’re up to date with a portfolio review and updates of your financial situation. If any of this sounds good to you and you’d like to find out more, get in touch here for your complimentary 1-2-1 session with one of our property investment coaches:...Read More
It is no question that Gen-Y are finding it harder and harder to purchase a home, and are instead opting for vacations and shopping, along with other lifestyle choices, rather than saving to get a house deposit. Why?...Read More
There’s nothing worse than going into what is undoubtedly one of the biggest financial decisions you’re ever going to make and feeling like you’re not adequately prepared. There is certainly a...Read More
Are you looking to get into property investment as a way to achieve your goals? It helps if you know what your goals are, so that you know what you need to achieve them! It's not a huge secret that ...Read More
It's the start of a new month, and that means that the RP Data roundup is out. Let's take a look at what the statistics say, and what it all means for property investment in general. Remember that it's ...Read More
For a look at the auction clearance results from the weekend have a look at this article. I know that people are watching the housing markets carefully with a lot of talk going on about bubbles and skyrocketing prices, so this is just a bit more information about the auction clearance results from the weekend from RP Data Australia...Read More
Well, there's a lot going on in the property market lately, and there's been a lot of talk today about negative gearing, about being in a bubble, whether the property market is over inflated or not, and what everything thinks about the reserve bank's actions to curb the rising housing market. I have to say...Read More
Take a look at this commentary from Robert Simeon at the Property Observer. It's been interesting to watch what's been happening in the news with the property bubble speculation. Hot topic stuff!
Check it out here...Read More
When you're applying for a loan for property investment, you need to take care of the finest details, because banks see everything these days, and you need to make sure you're up to scratch.
You can be an...Read More
AllianceCorp Investment Property Experts was established in 2007 and has grown to be one of the largest specialised independent property investment advice firms and buyer’s agencies in Melbourne with 13 staff who are dedicated to achieving great results for the clients.
We all hear stories of how well people have done in property, yet for Karen and I it didn’t seem possible.
During the Property Power Work Shop, Jason made it clear that the only thing getting in the way of our financial success was ourselves. Jason was able to show that virtually anyone with a little equity or savings can start an investment portfolio.
I urge anyone who has doubts about what they can achieve to watch the DVD or attend one of his workshops; you’ll be as amazed as we were. We have just purchased our second property with the help of AllianceCorp Property Advisory.
Harrison - Point Cook
Ground Floor 286
St Kilda Road,
St Kilda VIC 3182
Telephone: 03 8669 0629
Fax: 03 9534 0671
General Comments/Enquiries: firstname.lastname@example.org