One of the most common property investment tips that experts talk about is finding up and coming locations in which to invest. Like buying into any asset, it’s always better to get in at the “ground floor” or near the bottom of a cycle, as this tends to give you more capital growth over the long term. With property, you can either pick the many peaks and troughs in the market, or you can find a suburb that is still good value for money and is likely to provide you with capital growth in the future. It sounds easy, but what are some of the signs that an area will become a property hot spot?
The Property Ripple Effect
A great example of the property ripple effect is often seen in areas that are located near to popular beaches but are not directly along the coastline. These suburbs are generally less popular and therefore less expensive than their neighbours. However the ripple effect occurs when more people wish to move to the area but can’t afford the waterfront property – they will happily move inland a little where the prices are lower but they can still get all the benefits of living in the area. These areas then themselves go up in value – both in terms of capital growth and rental returns – creating ripples outward to other surrounding suburbs.
For investors, this means that they should be researching the past and current prices for properties in great areas – either close to a beach, near to a major city centre or other desirable location – and comparing them to the prices in surrounding areas. Look for suburbs where the property prices are slightly cheaper but where people can still have access to and enjoy the lifestyle and facilities.
Look For The Cranes
Most investors do not have the advantage of large research departments and experts on the ground with inside knowledge. The big property developers do, however. They are well aware of the up and coming suburbs. A sure sign of a future property hot spot is the number of new developments being built in the area and the equivalent number of cranes that you can see.
Another of the experts’ property investment tips is to look for signs of infrastructure projects and news on large building works in a particular area. These can include major road works, upgrades and brand new highways and freeways. Other signs include the building of new schools and shopping centres in the suburb – these types of facilities and amenities can add significant value to the properties in the surrounding areas.
One of the best property investment tips is to talk to an expert such as Ironfish about finding up and coming areas for investment. They have years of experience, know how and access to extensive research that will assist you to choose the best locations for buying property that will increase in value over the long term while providing you with stable rental returns.