One of the key skills that people need when they are learning how to buy an investment property is being able to spot trends and having an understanding of the locations that are up and coming. Like any investments, the idea is to find an asset with significant growth potential and get in early, which of course holds true for residential off the plan apartments. There are a few key indicators that you can look for to help you find the next hot spot in your capital city.
The most obvious signal is a noticeable increase in the number of new properties being developed. Developers are keenly in touch with what areas having growing demand and attract the right type of investors. If you see an increase in the number of apartment block developments starting to appear then this is a good area to research further. Pay close attention to blocks that are under development or on the plan in clusters.
Important pieces of new infrastructure are also a good leading indicator that an area is going to appreciate in demand and subsequently property value. When you see new train stations or light rail appearing in areas, this is a good sign that government planners are looking at building out an entire area. Similarly, facilities like new schools and hospitals are often very attractive to potential buyers and investors, so eventually that demand will be met by the market.
It is important to pay attention to what the property media is saying as well. Every newspaper in every capital city in Australia has a department that follows and reports on the local property market. These journalists have access to great research and they pay close attention to the local government development applications that are happening so that they can spot trends. More often than not, when an area is about to take off you’ll start seeing more pieces being written by the local press about the areas worth watching.
Other amenities will start appearing in and around these investment hotspots, so clever investors will also be paying attention for this type of activities. When areas are gaining traction, grocery stores will start appearing and in general retail development will begin expanding. People who buy modern, off the plan apartments today are looking for a particular lifestyle, so you’ll start to see cafes appearing and other types of business that appeal to a more urban lifestyle.
Figuring out how to buy an investment property is a process that anyone can learn and then follow to build their portfolio. You need to be patient and pay close attention to what’s happening in your local market. Doing the research upfront on the areas of the city you’re looking to invest will pay off when it comes time to get more serious about your purchasing decision. Having a strong feel of what areas are on the rise versus areas that are reaching their peak is a great starting point in your overall property investment journey.