Some investors might have the ability to foretell the next property hot spot, but the truth is in most instances, they are methodical and detailed in their strategy to buying. By examining the market, getting a feel for the local area, communicating to experts and considering their ‘must-have’ list they strengthen their chances of making an educated decision.
Some tell-tale signs can indicate when a neighbourhood or region is about to undergo a property upturn. 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 analysing 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
Arrange your list of open homes, slip into some comfortable shoes and hit the streets. 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 relevant to analyse suburbs that are within the zones of high-performing schools and suburbs with good public transport. Families make up 71 per cent of the Australian population according to the 2016 Census, which mean it could be advantageous to purchase an investment property in an area that appeals to the vast majority of Australians.
Property listings
Given the preponderance of properties are advertised online, this is a convenient tool to help you research the market. Head to websites such as realestate.com.au, domain.com.au and analyse 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 has been selling recently.
Justified ‘must-have’ success factors
When evaluating a possible investment consider these factors. Having three or more may increase the possibilities of making a smart investment choice.
- Nearby facilities like good schools, hospitals, parks and transport
- Good public transport infrastructure
- Trendy cafes, restaurants and shopping centres
- Proximity to the beaches/waterways
- Has the neighbouring suburb boomed as there may be a future ripple effect in the surrounding suburbs
- Well-positioned suburbs that may have been evaded by property buyers as run down and old
Speak to your local Amber Werchon Property agent
Here at Amber Werchon Property, we live and breathe real estate, and we’re local! We have got our fingers on the pulse that is the Sunshine Coast real estate market. Make sure you contact us and ask about the local market or come and visit us this weekend at one of our open homes!