Explore different suburbs in Melbourne
Try not to mentally restrict yourself to the suburb you’ve grown up in or by the type of asset you want. Many investment opportunities exist within the property market, including off-the-plan, rural and commercial property. Be open to the possibilities. Jump in your car, hail a bus or catch a train to a section of your city or area you’ve never explored and get to know it a little better.
Previous sales data
Realestate agents us property reports to show suburb price growth using monthly, yearly and 10-year comparisons. A buyers advocate take’s the time to obtain and analyse this data – it will identify market peaks and troughs, as well as dormant suburbs that are on the verge of a property price boom. Check out some of the below real estate data providers for more info.
Go for second best
Often, the most popular suburbs have already experienced a price peak and boom, and it could be another seven to 10 years before they achieve a similar cycle. If you invest in these suburbs, you could be paying top dollar for a slow return compared with a less popular suburb.
So, when looking for a suburb to invest in, go for the next best option – one that’s similarly priced. Chances are, you’ll be buying into a suburb that has yet to boom and will provide you with the fruits of that return.
Location, Location, Location
If you’re looking to invest in a house or unit, consider the market impact of surrounding developments, such as new housing estates and high-rise constructions. Generally, the more properties available for sale in a suburb, the more diluted the return on your investment. A buyers advocate will have in depth knowledge with what is going on around your suburb.
Buy Around Hot Suburb’s
There always a suburbs that everyone wants to live in.In the West of Melbroune it’s Williams town, in the South East of Melbroune It’s Brighton. These types of suburbs have the best demand and highest growth when it comes to real estate. It’s natural for buyers and tenants to be priced out of these suburbs and default to a neighbouring area transferring the success of the hot suburbs to it’s neighbours. Check out our article on ‘the next hot spot growth areas.‘
Value You Can Add, on the Cheap.
Most real estate buyers stay away from property that may need a coat of paint, new garden or even a light renovation. For the smart investor, this is as easy as picking low hanging fruit.
Large Land Allotment
Every one knows the value of real estate lies within the land as the building itself depreciates to nothing through ware and tare. A skilled investors will look for property that has sub-division potential because this gives investors options such as positive gearing or cashing out through selling part of the property.