Location is Key when Buying Off The Plan
One of the most important things to look for when buying an investment property is not whether there is a pool or a gym, or even what the floor plans are like. It should be the location. It’s all well and good buying the nicest apartment at what may be a cheaper price, but if it’s in an underperforming suburb then the likelihood of this property performing well is pretty slim.
It is important to do your research on the suburb that you wish to buy in as this could be the key factor of your apartment performing good or providing outstanding results. Identifying suburb hotspots is a great place to start as getting in early in one of these areas could see your capital growth rapidly increase in just a few years.
When looking for a growth suburb key indicators include gentrification and homes undergoing refurbishment. Young professionals moving in to the area is also another sign that this suburb is on the rise along with steadily increasing property prices. Large-scale planned developments in the future such as new schools, a shopping centre or a transport interchange normally suggest this suburb is gentrifying and more jobs will become available creating a demand for housing.
You should also look at the immediate area close to the apartment. Are there local conveniences and amenities such as shops, schools and restaurants within walking distance and do trains and buses service the suburb? If so then this generally means you are on to something good and will make this apartment popular with future rental tenants and buyers.
So why is it that when it comes to buying property many Australians tend to stay within their preferred locality and may only move up to 10km away from where they currently are? One of the main reasons is that this is the area where they grew up and know inside out. All their friends live here, they have their local favourite coffee shop and their workplace is close by. This is particularly common for home buyers looking for their second or third home as they feel they have established their lives here.
Buyers also favour living close to transport hubs, particularly railway stations as this means they can travel to work swiftly. However, affordability is key for first home buyers getting their foothold on the property market and they especially are the ones that should be taking advantage of growth suburbs, particularly out west.
If you are simply looking for a home to live in then it would appear that Australians do not want to sacrifice their desired location. However, on an investment point of view, buying in the next up and coming suburb that is proposed to grow well over the next few years and well into the future is essential if you are looking to expand your property portfolio and increase your Aussie dollars.
Published on 17th of September 2015 by Michelle Leftwich