Investment growth is positively influenced by properties situated in close proximity to train stations, schools, shopping centers, and other amenities. This is due to their heightened desirability and enhanced lifestyle appeal for both renters and buyers.
Properties experiencing optimal capital growth typically possess a planned infrastructure pipeline, which can positively influence the property’s future sales price.
You can more information from Victorian Infrastructure Plan site or the local council.
History Of Growth.
History tends to repeat itself. If a property has demonstrated strong performance over the past 20 years, there’s no reason why it shouldn’t continue to excel in the next 20 years.
This basic level of due diligence can yield substantial dividends after the property purchase.
All Real estate agents utilize property reports to illustrate suburb price growth through monthly, yearly, and 10-year comparisons.
A buyer’s agents invests the time to acquire and analyze this data, identifying market peaks and troughs, as well as dormant suburbs poised for a property price boom.
Avoid Booming Suburbs.
Frequently, the most sought-after suburbs have already undergone a price peak and boom, and it might take several years before they experience a similar cycle. Investing in these suburbs could mean paying a premium for a slower return compared to a less popular suburb.
Therefore, when seeking a suburb for investment, consider the next viable option with a comparable price range. You’re likely to invest in a suburb that has yet to experience a boom, offering the potential for a fruitful return.
Location, Location, Location
What contributes the most to increasing property prices? While a real estate agent might attribute it to their agency, the reality is that it’s the buyers competing with their dollars to secure a property in their favorite location.
Tenants operate on a similar principle, and to reduce the duration of vacancy over the property’s ownership, the key lies in making a wise purchase.
Finding Value: The vicinity of sought-after suburbs
Less Buyers, Better Price.
Many real estate buyers shy away from properties that may need a coat of paint, a new garden, or even a light renovation. They are inclined to pay a premium for a turnkey property that requires no additional effort. For savvy investors, however, these opportunities are akin to picking low-hanging fruit.
Two For The Price Of One
Everyone understands that the true value of real estate lies in the land, as the building itself depreciates over time due to wear and tear. A savvy investor seeks properties with subdivision potential, as this provides various options such as positive gearing or generating cash by selling a portion of the property.