Buying an investment property before the boom
The goal of all property investors is to ensure they are buying an investment property before the boom and not at the very top of a growth cycle.
At Lime Property Solutions, we have always believed that good research is key to ensuring that you are buying your investment property before the boom.
Stick to a selection criteria and buy property before the boom
We always start with the ‘big picture’ statistics. It is these State by State and city by city statistics and forecasts that will inevitable point us towards the city with the highest probability of being at a point before the boom. Once we have the ‘proof’ of best city, it’s then good to have a very close look at the macro factors of general areas. These include transport links and ease of access and egress, infrastructure growth, educational facilities from child care to university, medical facilities including hospitals, shopping, entertainment, leisure areas such as parks and entertainment centres, infrastructure growth, job growth and population growth just to mention a few.
When we get down to the suburb we research the micro including a suburb’s population growth, its major existing attributes (like a train station or sought-after school), and any plans for change in the short term (like an expanded shopping centre), then drill down to the market trends that will tell you what’s happening right now. Specifically we are looking at very short drive or walk-to facilities including child care, schools, convenience stores, cafes, salons, pools, sports ground, etc.
We do not agree that you should stick to your own home area. While this may give some peace of mind, as an investor you can be missing out for many years on excellent growth opportunities by diversifying to different cities. For example, remember, we had no growth in Sydney between 2003 and 2010/11. In this same period investors in Brisbane saw a 150% increase in house prices and in Perth it was close to 200%.
The research outside of your own area can be done by professionals like Lime Property Solutions; this is exactly the service we provide.
John McGrath has written a very good article on this topic although we believe he is contradicting himself and not helping any investors by suggesting investment in your own back yard only!
Call us at Lime for more information on how you can be buying an investment property before the boom! Read more: http://goo.gl/Z30w1W
