Purchasing property is one of the biggest investments that you will make...
Whether it is an investment or future home, selecting the right location will impact the value of your property and the quality of life you want to create.
By following the simple steps below you can discover a lot about the investment potential of a suburb and make an informed decision.
- Examine the local infrastructure
Are there any plans by the government to make upgrades to the infrastructure in and surrounding your suburb of choice? This is a strong indicator that there will be/ is significant growth occurring, which may positively impact the future price of properties in the suburb.
- Investment potential
A quick search on realestate.com.au, domain.com.au or Australian Bureau of Statistics will allow you to determine the investment potential of a property.
Firstly, look at the past capital growth - all you need to do is compare the price or rent of a property over a period of years to determine if it has increased.
Secondly, to estimate future potential, find out whether the population of the area is increasing or decreasing.
Finally, look at rental vacancy rate – high vacancy rates indicate that there is a surplus of properties in the area, which signals that growth in that area is stagnant.
- Local amenities
Properties within close proximity to key amenities such as public transport, schools, childcare, parks and shopping centers can indicate potential property price growth due to the lifestyle appeal for other buyers and renters. Lifestyle appeal also plays a major role in the attractiveness of a property/ suburb as residents seek to get out of the house and enjoy life, therefore homes that offer easy access to parklands, open spaces, cafes and community hubs should be sought after.
Most people want to find a suburb that fits their demographic, for example young families might want to choose a suburb that is popular with other families. Religion, ethnic and other cultural aspects can also be of significant importance when making the decision of where to live. If you are looking to invest, demographics can assist you to identify the type of tenant you would like to see in your property. Other considerations that relate to demographics include crime rates and levels of unemployment, which can impact costs to you as the landlord including insurance against theft or damage and rentability of your property if unemployment levels are high in your suburb of choice.
These 4 steps can help you identify a suburb that will yield a higher return on investment for your property. Aultun Property Group have developments in Chadstone, Oakleigh South, Keysborough, Mitcham, Chelsea Heights and Cheltenham – all identified as high growth areas with strong existing infrastructure or planned infrastructure upgrades by the Victorian Government. For more information about the investment potential in any of these suburbs please make an enquiry on the project page and a member of our team will get back to you.