Location, location, location, they say. But how do you snag a property investment in your ideal location or predict which suburbs are likely to perform well?
Research, research, research. That’s the obvious place to start. But it’s knowing what to research and what to look out for that counts.
Here’s our five go-to research strategies to help you find your ideal investment property location.
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Research from top to bottom
Start with cities. Whether you’re looking to buy locally, interstate or overseas, aim for properties in cities with high population growth, good employment opportunities, and high average wage growth. Then research suburbs. Find suburbs with a history of strong capital growth or potential, or that are soon to be revitalised. Then research streets. Not all streets (in the same suburb) are equal. Some streets have more potential if they have popular restaurants along them, while others may be close to commercial areas.
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Consider the demographics
Find suburbs where owner-occupiers want to live and where people can afford to pay a premium to live because they have higher disposable incomes. Affluent, inner-city suburbs may be beyond your budget, but what about middle-ring suburbs?
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Look for a range of growth drivers
Areas in which new infrastructure is underway and more than one growth driver is evident are great for potential property growth.
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Don’t focus on bargains
You can spend a lot of time bargain-hunting, but it is often fruitless. It’s better to focus on the right property in the right location.
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Think about renovation or development opportunities
Many people don’t want to put in the work to renovate or redevelop properties, so you may find some gems in great locations at more reasonable prices.
Remember, the location you can buy in depends on your budget and availability of properties that align with your strategy, so don’t define your location too narrowly.
If you’ve got any questions about Perth suburbs or property investment in general, why not complete our Getting Started form to get the ball rolling.
Once you’ve started doing your homework about location, you might like to learn more about investing in property in Perth in our free Get Ready to Invest in Property eBook.
It takes you through five simple steps to help you understand strategic property investment and how to make it work for you. Whether you’re a first-time investor or re-entering the market, it will help you navigate the sometimes complex world of property investment and associated issues you need to consider.
So if you’re keen to learn more about getting into property investment, download your free Get Ready to Invest in Property eBook here.
We think you’ll find it invaluable.
