What makes a sleepy suburb suddenly become a hot property investment option? And who wouldn’t want a crystal a ball to know exactly what these suburbs are – well before the boom?
Of course, nobody knows for certain what the future holds. But with a bit of research and a keen eye, there’s a good chance you can spot a property investment winner before the prices skyrocket.
The ‘crazy house’ price.
You’ll need to do research. Sometimes, it takes one ‘crazy’ sales result to set a suburb off like wildfire. For example, in May 2010 a 3 bedroom house (with no parking) sold in Leichhardt in Sydney’s inner west for $1.475m – well over the $1.35m reserve. This sparked interest in the area (although it’s hardly ever been a sleepy suburb) and led to a 22 per cent rise in the suburb’s median house prices in 2010.
Improving infrastructure naturally leads to interest in growing suburbs. Freeways, public transport and other facilities are all taken into account when someone decides whether or not to live in a neighbourhood.
The Wow Factor for property investment
There are some areas that are obviously attractive to people, and suburbs near natural attractions are one of them. Finding affordable properties near beaches, parklands, lakes or rivers can be difficult, but not impossible.
The Coffee Shop Factor
If good coffee shops and restaurants start to open in a particular suburb, it’s a sign that people are paying attention to the rumblings of an area. Good services attract people, and vice versa. More people seeking to buy an investment property in an area increases demand and hence prices.
Ever since the ‘My Schools’ website was launched, a good school catchment area has become even more important factor in real estate investment. The pressure to enrol children at the best-performing state schools has grown.
Using your own home for capital growth.
You can use your own home to secure an equity loan and start your property investment portfolio and with a bit of research you will be on your way to becoming a keen-eyed property investor. And we’re here to help you get there – call us anytime and we’ll start the process.