Every property investor would love to have a crystal ball and be able to buy in an area before it becomes ‘up and coming’, in order to buy cheaply and reap the benefits of a subsequent increase in property prices.
There are certain indications that a suburb may boom, but none of them are set in stone and you can never be sure.
OUR HOT SPOT GUIDE
Check the area for the following:
• Does demand (for whatever reason) exceed or apparently exceed supply
• Is the area’s increase in price significantly greater, than the region as a whole
• Does the area have low prices, which are expected to rise in the near future
• Are neighbouring areas experiencing good capital growth
• Are there positive developments happening in the area (e.g. a new shopping centre or an arterial road to the city) that will impact positively on capital gains
Prior to purchasing an investment property, it is highly recommended that you do your homework and seek professional advice.
• Check sales of similar properties in the area
• Check with your financial advisor/bank to see if you can afford the property
• Check with your solicitor to ensure that any extensions or additions were approved at the time of construction
• Engage the services of a building and pest inspector to professionally inspect the property
• Speak with neighbours to find out about crime levels, noise levels, pollution, industry smells, public housing developments, flooding or drainage problems