Knowing Where to Buy
Finding where to buy a property is not that simple, and certainly not as simple as buying in the cheapest suburb.
There’s a lot of considerations when choosing an area to invest in. Most of the common ones you hear are about infrastructure like rail, hospitals and amenities etc. These are extremely important but there’s a lot more to it as well. One of the key things we look for is emerging markets. If a market area is constantly in the media, or has been thrown around in conversation or seminars then it may not be the best area to invest in as it may already be over heated due to media scrutiny. Also, just because a suburb has a cheap entry price doesn’t make it a good buy as we need to have some good fundamentals in place as well.
Rather than simply following media chatter about hotspots, I prefer to predict what’s going to happen in an area based on imminent changes, such as the dilution of housing commission content, new developments and indeed changes in a councils appetite for developments, along with all the normal employment drivers.
The other big aspect that requires consideration is the individual circumstances of the buyer. We need to assess the diversification of the assets you already have and the ability for you to buy a property at all. We also need to consider any employment benefits you get for example, Rental Assistance. Maybe there are certain areas we can’t buy in as we don’t want to lose any other employment benefits you receive. We may also be targeting capital growth or high yield properties, so all of these aspects come into play. Remember that the best time to buy an investment is when you are financially ready to do so and not when the market dictates.
If you need an assessment or assistance with choosing an investment area please give us a call.