9 ways to tell if you’re buying a property in a rising suburb
What’s the secret to buying before a suburb boom? Research, knowledge and patience.
There are many factors to consider when choosing where to purchase your first home. From finding a property close to your workplace, near family and friends, or in a suburb you already love. However, if you want to make a sound investment in a suburb which is likely to flourish over the time you’re living there, then follow these simple steps, and you could find yourself purchasing ahead of the market.
Cathie Price, from property development company Pindan, explains that the company has noticed an uptake in buyers becoming attuned to identifying burgeoning areas.
“Plaza Central Buyers are realising the Sunshine Coast is fast becoming one of the most desirable locations in the sunshine state for investment and lifestyle. The Sunshine Coast property market is currently the strongest in Queensland and recent data supports strong prospects for ongoing capital growth.”
Here are 10 tricks to choosing a neighbourhood before it proliferates
1. Homes sell as soon as they reach the market
If homes in the area you’re looking to buy in are in high demand, then this could be a good indicator that the suburb ticks the boxes of other buyers. When buyers flock to one suburb, this can result in the driving of competition, which in turn, drives house prices. If you get in before the boom, then your house price could be drastically increased once exponential growth has plateaued.
2. There are pending infrastructure upgrades
Any government infrastructure spending within a neighbourhood and surrounding suburbs uplift house prices considerably. Infrastructure investment generally supports the community positively, making it a desirable and easy place to live, as well as bringing in traffic which supports local businesses. Look at the local council website and read through any planned infrastructure upgrades, or even attend the next planning committee meeting (these are free for members of the public to attend).
3. Excellent public transport on offer
Ask any investor what they look for in a rental property, and they will no doubt explain that a good transport offering is a key selling point. Buying a home with a great selection of public transport options within walking distance will help to retain the home’s value, and any new transport infrastructure upgrades can also lift the valuation of your home.
4. An abundance of new businesses and start-ups
Start-up companies will often pick fringe suburbs where the rent is low, but as the company expands and more employees move closer to work, the population of the neighbourhood will eventually grow. As the area becomes more popular, your home is likely to lift in value and trigger the creation of more amenities to facilitate demand for additional goods and services merchants.
5. The home is within walking distance to many amenities
Looking at a map can warp your view of the proximity of facilities surrounding your future home. Instead, set a timer and walk around the neighbourhood to gauge how close major amenities are in real life.
6. The neighbourhood is home to several high decile or well-regarded schools
Reputable schools are a significant drawcard for families to move to a new neighbourhood. By purchasing a home in an area with excellent schooling options, you’ll be more likely to secure long-term tenants if you ever choose to rent out your property, and the home is also more likely to hold its resale value.
7. Lower rental vacancy rate
If a suburb has a vacancy rate below 3%, it usually means there is a shortage of rental properties. Higher rental occupancy rates is a good sign that the suburb is a desirable place to live, and could be likely boom due to increased demand over the next few years.
8. First home buyers are flocking there
When first home buyers get priced out of a suburb (due to significant development and gentrification), they will often move to a cheaper suburb. As more people move to the next “it” neighbourhood, trendy local bars and cafes will follow suit, with the suburb eventually becoming the next hip area to live in. Just look at Collingwood or Brunswick in Melbourne or Soho in Manhattan.
9. Neighbouring suburbs are already in demand
What happens when a suburb becomes too densely populated and expensive? Buyers venture out to fringe suburbs. Being able to live one suburb away from the place you spend most of your time is a great option for many home seekers.