It pays to find the new up and coming suburb before it booms. But how can it be done and where should you be looking?
Our friends at State Custodians have put together some great points you should consider when trying to find an undervalued area.
You can’t just assume that the next hotspot is going to be around the area you live in. If you really want to explore all of your options, dig a little deeper and look beyond the state borders. Also, by purchasing a property without inspecting it in person can help to keep emotions out of the decision and allow you to focus on other important aspects such as population growth, rental yields etc.
If you are not 100% sure about looking for property interstate by yourself, consider employing a buyer’s agent to help you.
Look at supply in demand
Finding an area or property with a low vacancy rate may give you a better chance at finding tenants to rent the property. Some places you can look to do your research include:
- Real estate websites that provide statistics on vacancy rates
- Local real estate agents who have extensive knowledge about the local area
Some other statistics you can look at which show supply and demand include the number of days a property is on the market, auction clearance rates and the number of renters compared to home owners.
Many investors forget to look at the public transport of a suburb and what future development plans there are. If the government has plans to develop the roads, rail or bus lines in a certain area, it could be a sign that they are expecting a boost in population growth.Have a look at the local council websites for any future announcements and also keep an eye on the local community news. These sources can give you early tip offs about any proposed changes for the area and can let you stay one step ahead of the rest.
Look at the demographic
The demographic of a certain area can help give you an idea of what the population growth will be like down the track. For example, if there are a lot of young couples or young families in the area, it may indicate that this is a family friendly suburb and if there are plans for more schools, parks and shopping centres to be developed in the area, this is a good sign that there could be a boost in young families moving to the area.
Check out the most recent demographic stats at the Australian Bureau of Statistics. To get an idea about how much you can borrow take a look at our online loan qualifier here. It is easy to complete and can give you an answer in just minutes. You can also give our Lending Specialist team a call on 13 72 62 to discuss your options.
Find out more about other home loan options and get tips on what to look for:
- 3 key questions to ask before investing in property
- House vs. units: Which should you choose?
- Top home loan features for property investors